Template-Type: ReDIF-Paper 1.0 Author-Name: Stella Luz A. Quimbo Author-Name-First: Stella Luz Author-Name-Last: Quimbo Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: Health or Wealth : Is there a trade-off when taxing sin? Abstract: Smoking prevalence in the Philippines is among the highest in the world. The economic costs of smoking are substantial, in terms of the huge amounts of resources spent to treat smoking-related diseases, long-term income losses due to premature deaths, and reduced labor productivity. Cigarette taxation is widely believed to be the most effective policy handle to reduce smoking, with the potential benefit of raising tax revenues. This Note looks into the debates surrounding the Sin Tax bill in the Philippines that focus on an important policy question: are there health and revenue trade-offs when taxing sin? With substantial increases in excise taxes on cigarettes, will health gains from reduced smoking come at the expense of reduced tax revenues? Should the government consider smaller increases in excise taxes so that it can gain from both increased tax revenues and reduced cigarette consumption? This Note concludes that trade-offs between health and tax revenue gains exist, but only for relatively large tax rates.It also argues that the ideal tax on cigarettes that yields the highest health gain is a high, uniform, and inflation indexed specific tax. Length: 14 pages Creation-Date: February 2013 Publication-Status: Published as PCED Policy Notes No. 2013-01 File-URL: http://www.pced.gov.ph/wp-content/uploads/2014/03/Policy-Notes-1.pdf File-Format: Application/pdf Number: 201301 Handle: RePEc:phs:pcedpn:201301 Template-Type: ReDIF-Paper 1.0 Author-Name: Stella Luz A. Quimbo Author-Name-First: Stella Luz Author-Name-Last: Quimbo Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Author-Name: Aleli D. Kraft Author-Name-First: Aleli Author-Name-Last: Kraft Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Author-Name: Joseph J. Capuno Author-Name-First: Joseph Author-Name-Last: Capuno Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Author-Name: Carlos Tan Author-Name-First: Carlos Author-Name-Last: Tan Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: How much protection does PhilHealth provide Filipinos? Abstract: The Filipino household would usually cite illness and injury as adverse events they experience and medical expenditures arising from these health shocks are large. How does the average Filipino household cope with health shocks? How much financial protection then do Filipino families really get from PhilHealth? This policy note presents estimates of the amount of financial protection provided by PhilHealth to Filipino households, using a metric called the benefit delivery rate (BDR). The study’s BDR estimates show that, on the average, Filipinos receive scant financial risk protection from PhilHealth. The elderly and the formal worker enjoy the most financial risk protection from PhilHealth. The ones with the least protection are the OFWs, women, and the poor. Policy simulations suggest that a better delivery rate of PhilHealth benefits can be achieved even under the current program design, if it is coupled with effective program administration, a strong commitment to efficient claims processing, and the full implementation of premium contributions increases. Length: 12 pages Creation-Date: March 2013 Publication-Status: Published as PCED Policy Notes No. 2013-02 File-URL: http://www.pced.gov.ph/wp-content/uploads/2014/03/Policy-Notes-2.pdf File-Format: Application/pdf Number: 201302 Handle: RePEc:phs:pcedpn:201302 Template-Type: ReDIF-Paper 1.0 Author-Name: Raul V. Fabella Author-Name-First: Raul Author-Name-Last: Fabella Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Author-Name: Fidelina N. Carlos Author-Name-First: Fidelina Author-Name-Last: Carlos Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Author-Name: Sarah Lynne S. Daway Author-Name-First: Sarah Lynne Author-Name-Last: Daway Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Author-Name: Geoffrey M. Ducanes Author-Name-First: Geoffrey Author-Name-Last: Ducanes Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: Giving the BSP an Extra Mop : A Response to Short-Term Capital Inflows Abstract: In the aftermath of the global financial crisis, the Philippine economy has experienced a surge in short-term financial inflows. Aside from their destabilizing effects on the financial system, the resulting upward pressure on the value of the peso has also given rise to concerns of a loss of competitiveness of the exports sector. In response, the Bangko Sentral ng Pilipinas (BSP) has intervened in the forex market. This, however, has led to costly “mopping up” activities in the face of the BSP’s commitment to inflation targeting: the BSP is now highly leveraged and in need of new “policy mops. ”This policy note discusses the alternative monetary policy tools that would enable the BSP to continue conducting independent monetary policy and to effectively adapt to the ever-changing landscape of the global financial system. Length: 13 pages Creation-Date: April 2013 Publication-Status: Published as PCED Policy Notes No. 2013-03 File-URL: http://www.pced.gov.ph/wp-content/uploads/2014/03/Policy-Notes-3.pdf File-Format: Application/pdf Number: 201303 Handle: RePEc:phs:pcedpn:201303 Template-Type: ReDIF-Paper 1.0 Author-Name: Agustin L. Arcenas Author-Name-First: Agustin Author-Name-Last: Arcenas Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: Mining Sector: Towards Contributing to Inclusive Growth Abstract: This paper tests if the mining sector has contributed to inclusive growth in the Philippines. The results of the econometric test indicate that households--both poor and non-poori--whose members are employed in the mining sector are neither likely to exit nor enter poverty, suggesting that mining has a neutral impact on poverty status. The results also show that households whose members are in the agriculture, forestry, and hunting sectors are statistically likely to enter poverty, and less likely to exit it. The analysis also indicates that households engaged in entrepreneurial activities are the best candidates to exit poverty in the next period. The findings suggest that the mining sector in its current state cannot be relied on to directly contribute to poverty reduction. Moreover, it suggests that poverty reduction could be very likely attained by promoting and supporting entrepreneurship among poor households. Length: 8 pages Creation-Date: February 2013 Publication-Status: Published as PCED Policy Notes No. 2013-04 File-URL: http://www.pced.gov.ph/wp-content/uploads/2014/06/Policy-Notes-4.pdf File-Format: Application/pdf Number: 201304 Handle: RePEc:phs:pcedpn:201304 Template-Type: ReDIF-Paper 1.0 Author-Name: Renato E. Reside, Jr. Author-Name-First: Renato, Jr. Author-Name-Last: Reside Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Author-Name: Ruperto Alonzo Author-Name-First: Ruperto Author-Name-Last: Alonzo Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: Non-Investment-Related Tax Incentives (NITIs): A Policy Paper Abstract: This Note analyzed non-investment related tax incentives (NITIs)--tax mitigation instruments geared toward enhancement of social values from promotion of education, arts, and science, to assistance of charitable institutions, non-government and non-profit organizations (NPOs) and cooperatives and grant of tax privileges to individuals.It found that government’s largest NITI fiscal exposures were to NPOs, seniors' VAT exemptions and cooperatives. NITIs were subjected to rigorous economic efficiency criteria. Philippine standards, norms, practices, rules and laws for NITIs were compared with international best practice and were found wanting. Institutional shortcomings in NITI administration and tax system were pronounced--aggravated by a lack of thorough audits of NPOs and cooperatives by regulators and absence of agency coordination in implementation and monitoring of NITIs. The resulting nontransparency gives rise to mis-targeting of subsidies and taxpayer abuse (money laundering by taxpayers, given the lack of oversight over many foundations). The Note concluded by offering stakeholder recommendations. Length: 18 pages Creation-Date: June 2013 Publication-Status: Published as PCED Policy Notes No. 2013-05 File-URL: http://www.pced.gov.ph/wp-content/uploads/2014/03/Policy-Notes-5_rev2.pdf File-Format: Application/pdf Number: 201305 Handle: RePEc:phs:pcedpn:201305 Template-Type: ReDIF-Paper 1.0 Author-Name: Emmanuel S. de Dios Author-Name-First: Emmanuel Author-Name-Last: de Dios Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Author-Name: Katrina Dinglasan Author-Name-First: Katrina Author-Name-Last: Dinglasan Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: Just how good is unemployment as a measure of welfare? Abstract: The government is rightly concerned with employment generation to make growth inclusive. The use of the open unemployment rate to measure its success, however, is misplaced. In a developing country with a large informal sector and in the absence of unemployment insurance, open unemployment is primarily a middle-class phenomenon: the unemployed are not predominantly poor, and the poor are not predominantly unemployed. Measures of productivity and shifts of labor across sectors may contain more information. Length: 7 pages Creation-Date: July 2013 Publication-Status: Published as PCED Policy Notes No. 2013-06 File-URL: http://www.pced.gov.ph/wp-content/uploads/2014/06/PolicyNotes6vers2_final.pdf File-Format: Application/pdf Number: 201306 Handle: RePEc:phs:pcedpn:201306 Template-Type: ReDIF-Paper 1.0 Author-Name: Ramon L. Clarete Author-Name-First: Ramon Author-Name-Last: Clarete Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: How did the Philippines level its tax treatment of imported and local distilled spirits? Abstract: On February 22, 2012, the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) found the Philippines to have violated its national treatment obligation on distilled spirits, urging the government to undertake the required correction to the relevant tax laws. The body ruled in favor of the European Union, which filed the complaint on July 29, 2009, alleging that the Philippines had discriminated against imported distilled spirits by taxing these products at higher rates than distilled spirits derived from sugar and other designated materials. Under the national treatment principle, a contracting member state is committed to apply its internal taxes equally on both imported and locally produced products covered.On January 28, 2013, the Philippines notified the WTO that it had complied with the decision of the DSB by enacting the Sin Tax Reform Law of 2012.It turns out that the Sin Tax Law had taxed local spirits at a higher rate compared to imported ones. This is documented in this note, along with a discussion on the implications of the distortion on the local markets of distilled spirits. Length: 7 pages Creation-Date: February 2014 Publication-Status: Published as PCED Policy Notes No. 2014-01 File-URL: http://www.pced.gov.ph/wp-content/uploads/2014/09/PN-2014-1_FINAL-rev_-digital.pdf File-Format: Application/pdf Number: 201401 Handle: RePEc:phs:pcedpn:201401 Template-Type: ReDIF-Paper 1.0 Author-Name: Ma. Joy V. Abrenica Author-Name-First: Ma. Joy Author-Name-Last: Abrenica Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: Designing a Competitive Electricity Market Abstract: Years after the Electricity Power Industry Reform Act (EPIRA) marked the departure from a centrally-managed highly regulated structure to a decentralized market oriented system, the expected reduction in electricity prices and the investments boost in the sector have not taken place. This note tries to unravel the reform enigma by focusing on the design, specifically the introduction of competition at the wholesale level while limiting the analysis to trading protocols observed in the wholesale electricity spot market (WESM). Could electricity prices have been lower under a different market design from the one currently applied in WESM? Bidding behavior of market participants are largely influenced by auction design so that the observed behavior in one regime cannot be used to predict the outcomes in another. Thus no one auction design is superior and appropriate to all markets. Length: 13 pages Creation-Date: March 2014 Publication-Status: Published as PCED Policy Notes No. 2014-02 File-URL: http://www.pced.gov.ph/wp-content/uploads/2015/02/PN-2014-2-digital-rev2.pdf File-Format: Application/pdf Number: 201402 Handle: RePEc:phs:pcedpn:201402 Template-Type: ReDIF-Paper 1.0 Author-Name: Rosa Alonso i Terme Author-Name-First: Rosa Author-Name-Last: Alonso Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: Tax Policy for Good Governance, Job Creation and Inclusive Growth Abstract: How can tax and expenditure policy help achieve inclusive growth? The author suggests five major reforms to achieve this—increasing the tax effort; reducing or eliminating tax exemptions; taxing all income at the same set of progressive rates; eliminating payroll taxes; and reducing and rationalizing fees. Length: 10 pages Creation-Date: April 2014 Publication-Status: Published as PCED Policy Notes No. 2014-03 File-URL: http://www.pced.gov.ph/wp-content/uploads/2014/08/Policy-2014-32-DIGITAL.pdf File-Format: Application/pdf Number: 201403 Handle: RePEc:phs:pcedpn:201403 Template-Type: ReDIF-Paper 1.0 Author-Name: Ernesto M. Pernia Author-Name-First: Ernesto Author-Name-Last: Pernia Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Author-Name: Ramon L. Clarete Author-Name-First: Ramon Author-Name-Last: Clarete Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: Investing in S&T and R&D in the Face of AEC Competition Abstract: How can the Philippines more confidently face the ASEAN Economic Community (AEC) challenge by end-2015? The authors argue that along with other policy reforms, investing substantial resources in quality education, science and technology, research and development and innovation required for the country's economic modernization and long-run inclusive development is a must. Length: 4 pages Creation-Date: May 2014 Publication-Status: Published as PCED Policy Notes No. 2014-04 File-URL: http://www.pced.gov.ph/wp-content/uploads/2014/07/PN-2014-4_rev1.pdf File-Format: Application/pdf Number: 201404 Handle: RePEc:phs:pcedpn:201404 Template-Type: ReDIF-Paper 1.0 Author-Name: Majah-Leah V. Ravago Author-Name-First: Majah-Leah Author-Name-Last: Ravago Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Author-Name: Dennis S. Mapa Author-Name-First: Dennia Author-Name-Last: Mapa Author-Workplace-Name: UP School of Statistics, Diliman, Quezon City Title: Eastern Visayas after Yolanda: Evidence from Household Survey Abstract: Have Typhoon Yolanda-affected families already recovered? This Note investigates if the families are back on their feet and the factors that aid in their recovery. Length: 8 pages Creation-Date: November 2014 Publication-Status: Published as PCED Policy Notes No. 2014-05 File-URL: http://www.pced.gov.ph/wp-content/uploads/2014/11/PN-2014-5-rev-4-111014.pdf File-Format: Application/pdf Number: 201405 Handle: RePEc:phs:pcedpn:201405 Template-Type: ReDIF-Paper 1.0 Author-Name: Gary B. Teves Author-Name-First: Gary Author-Name-Last: Teves Author-Workplace-Name: Fellow-in-Residence, UP School of Economics Title: Improving Credit Access for the Food and Agriculture Sector through the Enhanced Implementation of Existing Policies and New Strategies Abstract: For several decades, the government has sought to develop the agriculture sector through programs like agrarian reform, agricultural modernization, and rural finance, but farmers and fisherfolk remain to be the poorest in the Philippines. The government needs to implement and improve on its existing programs, identified in this paper, and combine these with policy reforms and new strategies to fast-track the development of the food and agriculture sector and make economic growth more inclusive. Length: 6 pages Creation-Date: December 2014 Publication-Status: Published as PCED Policy Notes No. 2014-06 File-URL: http://www.pced.gov.ph/wp-content/uploads/2015/01/PN-2014-6_FINAL-digital.pdf File-Format: Application/pdf Number: 201406 Handle: RePEc:phs:pcedpn:201406 Template-Type: ReDIF-Paper 1.0 Author-Name: Ernesto M. Pernia Author-Name-First: Ernesto Author-Name-Last: Pernia Author-Workplace-Name: UP School of Economics, Diliman, Quezon City Title: Solar Power's Dawning and Promise for Inclusive Green Growth Abstract: Not too long ago, solar power was casually poohpoohed as a non-starter. It was facilely dismissed as impractical, space-intensive, inefficient and expensive. In terms of social desirability, it was generally regarded a cellar-dweller among the various renewable sources. Length: 4 pages Creation-Date: June 2015 Publication-Status: Published as PCED Policy Notes No. 2015-01 File-URL: http://www.pced.gov.ph/wp-content/uploads/2015/07/PN-2015-01_final-digital.pdf File-Format: Application/pdf Number: 201501 Handle: RePEc:phs:pcedpn:201501