Template-Type: ReDIF-Article 1.0 Author-Name: Arsenio M. Balisacan Author-Workplace-Name: Professor of Economics, University of the Philippines Title: Getting the Story Right: Growth, Redistribution, and Poverty Alleviation in the Philippines Abstract: The available data on poverty are inadequate in informing policy discussions on the growth-inequity-poverty nexus in the Philippines. The approach employed to generate the data yields inconsistent ranking of spatial and intertemporal poverty pro?les. This paper uses a spatially consistent approach to estimating poverty standards for the Philippines. It employs these standards to examine the proximate causes of the changes in sectoral and spatial poverty from the mid-19805 to the early 1990s, focusing particularly on the relative impact of growth and distributional changes, It ?nds that, contrary to popular perceptions, recent episodes of growth have not been anti-poor. The bulk of the poverty reduction in recent years has come from the bene?cial effects of growth on the poor, though the importance of growth in poverty alleviation varies greatly across administrative regions and sectors of the economy. Journal: Philippine Review of Economics Pages: 1-37 Volume: 34 Issue: 1 Year: 1997 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/90/490 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:34:y:1997i:1:p:1-37 Template-Type: ReDIF-Article 1.0 Author-Name: Maria Claret M. Mapalad Author-Workplace-Name: School of Economics, University of the Philippines, Diliman, Quezon City Author-Name: Petros K. Liverakos Author-Workplace-Name: Ministry of Finance, Athens, Greece Title: The Negative Correlation Between Foreign Savings and Domestic Savings Abstract: We show that the negative correlation between foreign and domestic savings arises from the non-stationarity of these variables. We propose a more appropriate technique for testing a causal relation such as the one claimed by the revisionist view. Journal: Philippine Review of Economics Pages: 38-49 Volume: 34 Issue: 1 Year: 1997 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/91/488 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:34:y:1997i:1:p:38-49 Template-Type: ReDIF-Article 1.0 Author-Name: Fidelina B. Natividad-Carlos Author-Workplace-Name: Associate Professor, School of Economics, University of the Philippines Title: On Sluggish Output and Exchange Rate Dynamics Once Again Abstract: This paper examines a model of exchange rate dynamics which incorporates sluggish output adjustment into the Dornbusch variable output model. In this model where both the price level and output cannot jump, the interest rate must decline in response to a monetary expansion so as to maintain money market equilibrium. As the interest rate declines, because of uncovered interest rate parity, there must be an expectation of a subsequent appreciation. However, the exchange rate need not necessarily overshoot initially and yet an expectation of a subsequent appreciation is created because expectations depend not only on the initial exchange rate deviation, as in the Dornbusch model, but also on the initial price deviation and these two deviations are now different sources of information for rational speculators. Furthermore, by explicitly deriving the time paths of the exchange rate and other variables, it is shown that indeed consistent with perfect foresight, whatever is the initial exchange rate response, such is subsequently followed by actual appreciation. Journal: Philippine Review of Economics Pages: 50-70 Volume: 34 Issue: 1 Year: 1997 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/92/491 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:34:y:1997i:1:p:50-70 Template-Type: ReDIF-Article 1.0 Author-Name: Ramonette B. Serafica Author-Workplace-Name: Research Fellow I, Philippine Institute for Development Studies Title: An Economic Analysis of the Service Area Scheme Abstract: Under the service area scheme, firms are required to install basic telephone service as a condition to complete in the cellular and international phone service markets. This study looks at the case of Metro Manila which was arbitrarily subdivided by the regulator into four sections as part of the scheme. Using a process model, the cost of providing basic telephone service in each section in determined for different output levels corresponding to market shares likely to be captured by a new firm. The cost data provided by the process model are then used as input for the econometric analysis where a translog cost function is estimated. Journal: Philippine Review of Economics Pages: 71-98 Volume: 34 Issue: 1 Year: 1997 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/93/492 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:34:y:1997i:1:p:71-98 Template-Type: ReDIF-Article 1.0 Author-Name: Raul V. Fabella Author-Workplace-Name: Professor, School of Economics, University of the Philippines Title: Symmetry and Efficiency Abstract: We consider teams where information asymmetry (adverse selection and moral hazard) is minimized by entry point screening designed to produce homogenous membership and work group arrangements and job rotation that render effort at worst imperfectly observable. We show that under membership symmetry, budget balance and strict rationality, a self-enforcing Pareto efficient (cooperates) and envy-free solution is attainable if and only production technology is of a unique concave family. Even in the absence of moral hazard and adverse selection, a self-enforcing Pareto efficiency remains impossible outside this family. Journal: Philippine Review of Economics Pages: 99-108 Volume: 34 Issue: 1 Year: 1997 Month: June File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/94/486 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:34:y:1997i:1:p:99-108