Template-Type: ReDIF-Paper 1.0 Author-Name: John Ballingall Author-Name-First: John Author-Name-Last: Ballingall Author-Email: jballingall@nzier.org.nz Author-Workplace-Name: New Zealand Institute of Economic Research Author-Name: Niven Winchester Author-Name-First: Niven Author-Name-Last: Winchester Author-Email: niven.winchester@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: Food miles: Starving the poor? Abstract: Food miles measure the distance food travels to reach consumers' plates. Although substituting local food for imported produce will not necessarily reduce greenhouse gas (GHG) emissions, the food miles movement is widely supported by consumers and import-competing producers. We investigate the economic implications of food miles-induced preference changes in Europe using an economy-wide model. We observe large welfare losses for several Sub-Saharan African nations. We conclude that food miles campaigns will increase global inequality without necessarily improving environmental outcomes. Length: 30 pages Creation-Date: 2008-12 Revision-Date: 2008-12 File-URL: http://www.otago.ac.nz/economics/research/otago0771016.pdf File-Format: Application/pdf File-Function: First version, 2008 Number: 0812 Classification-JEL: F18, D58 Keywords: food miles, non-tariff barriers, trade protection Handle: RePEc:otg:wpaper:0812 Template-Type: ReDIF-Paper 1.0 Author-Name: P. Dorian Owen Author-Name-First: P. Dorian Author-Name-Last: Owen Author-Email: dorian.owen@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Author-Name: Stephen Knowles Author-Name-First: Stephen Author-Name-Last: Knowles Author-Email: stephen.knowles@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: Which Institutions are Good for Your Health? The Deep Determinants of Comparative Cross-country Health Status Abstract: We extend the literature on the deep determinants of economic development by focusing on life expectancy, instead of income per capita, as an indicator of economic development, and by examining the role of informal, as well as formal, institutions. Our empirical results suggest that formal and informal institutions are substitutes. Improving informal institutions has positive effects on life expectancy that are statistically significant for most countries and stronger than the effects of improving formal institutions. The gains from improving informal institutions are greatest for countries in which institutions are weakest. Geographical factors also help explain cross-country variation in life expectancy. Length: 39 pages Creation-Date: 2008-12 Revision-Date: 2008-12 File-URL: http://www.otago.ac.nz/economics/research/otago077115.pdf File-Format: Application/pdf File-Function: First version, 2008 Number: 0811 Classification-JEL: O10, I10 Keywords: Life expectancy, health, deep determinants, institutions, social capital, geography Handle: RePEc:otg:wpaper:0811 Template-Type: ReDIF-Paper 1.0 Author-Name: Angus Charteris Author-Name-First: Angus Author-Name-Last: Charteris Author-Email: gus.charteris@mfat.govt.nz Author-Workplace-Name: Ministry of Foreign Affairs and Trade, Wellington, New Zealand Author-Name: Niven Winchester Author-Name-First: Niven Author-Name-Last: Winchester Author-Email: niven.winchester@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: Dairy disaggregation and joint production in an economy-wide model Abstract: We examine the impact of dairy disaggregation and joint production on trade liberalisation outcomes in an economy-wide model. Depending on parameterisation, our model includes either (a) a single dairy commodity, (b) several dairy commodities without joint production, or (c) several dairy commodities with joint production. In a numerical application, we consider the removal of US tariffs on dairy exports from New Zealand (the world's largest dairy exporter). We show that failing to account for joint production when dairy commodities are disaggregated leads to misleading results. Our preferred dairy production function differs from those used in other applied trade models. Length: 28 pages Creation-Date: 2008-11 Revision-Date: 2008-11 File-URL: http://www.otago.ac.nz/economics/research/otago077114.pdf File-Format: Application/pdf File-Function: First version, 2008 Number: 0810 Classification-JEL: D58, F15 Keywords: Disaggregation, joint production, trade liberalisation Handle: RePEc:otg:wpaper:0810 Template-Type: ReDIF-Paper 1.0 Author-Name: David Fielding Author-Name-First: David Author-Name-Last: Fielding Author-Email: david.fielding@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: Health Aid and Governance in Developing Countries Abstract: Despite anecdotal evidence that the quality of governance in recipient countries affects the allocation of international health aid, there is no quantitative evidence on the magnitude of this effect, or on which dimensions of governance influence donor decisions. We measure health aid flows over 2001-2005 for 87 aid recipients, matching aid data with measures of different dimensions of governance and a range of country-specific economic and health characteristics. Both corruption and political rights, but not civil rights, have a significant impact on aid. The sensitivity of aid to corruption might be explained by a perception that poor institutions make health aid inefficient. However, even when we allow for variations in the level of corruption, political rights still have a significant impact on aid allocation. This suggests that health aid is sometimes used as an incentive to reward political reforms, even though (as we find) such aid is not fungibile. Length: 24 pages Creation-Date: 2008-11 Revision-Date: 2008-11 File-URL: http://www.otago.ac.nz/economics/research/otago077113.pdf File-Format: Application/pdf File-Function: First version, 2008 Number: 0809 Classification-JEL: I19; O19 Keywords: aid, governance, health Handle: RePEc:otg:wpaper:0809 Template-Type: ReDIF-Paper 1.0 Author-Name: Alvin Etang Author-Name-First: Alvin Author-Name-Last: Etang Author-Email: alvin.etang@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: Modelling the Effects of Socio-Economic Characteristics on Survey Trust: Empirical Evidence from Cameroon Abstract: A large number of studies have used both an economic experiment and surveys to measure trust. There is some evidence in the literature on how behaviour in the experiment is related to socioeconomic characteristics (for example, age, gender, income levels, educational attainment, marital status and group memberships). However, the relationship between survey trust and such characteristics has not been explored in the current literature. This paper explores this relationship. Generally, the extent of trust declines as the radius of trust widens, suggesting that social distance is important. The results show some evidence that survey trust is correlated with socioeconomic characteristics. However, the correlates of context-specific and non-context specific trust are different. The number of years lived in the village is the key determinant of non-context specific trust. ROSCA membership is important for non-context specific trust in fellow ROSCA members only. Age and marital status are significantly negatively correlated with non-context specific trust in other village members. Income is what really matters for context-specific trust; however, years lived in the village and whether someone has ever lived in an urban area are also correlated with trust in fellow villagers. Length: 26 pages Creation-Date: 2008-10 Revision-Date: 2008-10 File-URL: http://www.otago.ac.nz/economics/research/otago077112.pdf File-Format: Application/pdf File-Function: First version, 2008 Number: 0808 Classification-JEL: O12, Z13 Keywords: Survey trust, context-specific, non-context specific, socio-economic characteristics, radius of trust Handle: RePEc:otg:wpaper:0808 Template-Type: ReDIF-Paper 1.0 Author-Name: David Fielding Author-Name-First: David Author-Name-Last: Fielding Author-Email: david.fielding@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: Inflation Volatility and Economic Development: Evidence from Nigeria Abstract: We use monthly time-series data on the prices of 96 individual products in the 37 states of Nigeria to analyze the factors that drive inflation volatility. Among the significant determinants of volatility are average inflation rates, transport and communication infrastructure, consumer access to credit markets and urbanization. However, there is substantial heterogeneity across products in the relative importance of these factors. Length: 25 pages Creation-Date: 2008-09 Revision-Date: 2008-09 File-URL: http://www.otago.ac.nz/economics/research/otago077111.pdf File-Format: Application/pdf File-Function: First version, 2008 Number: 0807 Classification-JEL: E31, O11 Keywords: Inflation, Volatility, Uncertainty, Nigeria Handle: RePEc:otg:wpaper:0807 Template-Type: ReDIF-Paper 1.0 Author-Name: Jan-Jan Soon Author-Name-First: Jan-Jan Author-Name-Last: Soon Author-Email: jan.soon@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: The determinants of international students' return intention Abstract: Students' non-return is a specific type of brain drain. This paper is an empirical study of the determinants of students' return intention in New Zealand. Applying a binary logit model on a comprehensive set of survey data, this study finds that initial intention prior to leaving for abroad is the most important factor determining whether or not a student intends to return home after completing his tertiary education. StudentsÕ perceptions on comparative aspects of the home and host country, such as wage competitiveness, working environment, opportunities for knowledge application and lifestyle, also contribute significantly to return intention. Length: 32 pages Creation-Date: 2008-07 Revision-Date: 2008-07 File-URL: http://www.otago.ac.nz/economics/research/otago0771010.pdf File-Format: Application/pdf File-Function: First version, 2008 Number: 0806 Classification-JEL: C25, J61 Keywords: Students' non-return, brain drain, binary logit model Handle: RePEc:otg:wpaper:0806 Template-Type: ReDIF-Paper 1.0 Author-Name: Willie Lahari Author-Name-First: Willie Author-Name-Last: Lahari Author-Email: wlahari@gmail.com Author-Workplace-Name: Department of Economics, University of Otago Author-Name: Alfred Haug Author-Name-First: Alfred Author-Name-Last: Haug Author-Email: alfred.haug@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Author-Name: Arlene Garces-Ozanne Author-Name-First: Arlene Author-Name-Last: Garces-Ozanne Author-Email: arlene.ozanne@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: Estimating quarterly GDP Data for the South Pacific Island Nations Abstract: Time series analyses generally rely on having a relatively high frequency of consistent and reliable data to work with. However for many of the South Pacific Island Nations (SPINS), data on major macroeconomic series, like GDP, are typically available only annually from the early 1980s. This paper empirically estimates quarterly GDP data from annual series using the approach of Abeysinghe and Rajaguru (2004), following the basic framework of Chow and Lin (1971), Fernandez (1981) and Litterman (1983). We link the available annual GDP series for a select group of SPINS with GDP-related series (predictor variables) that are available quarterly. We deem that our quarterly estimates of GDP are more consistent and reliable compared to estimates obtained through less sophisticated methods of univariate interpolation. Length: 19 pages Creation-Date: 2008-05 Revision-Date: 2008-05 File-URL: http://www.otago.ac.nz/economics/research/otago077109.pdf File-Format: Application/pdf File-Function: First version, 2008 Number: 0805 Classification-JEL: C82; E00 Keywords: Quarterly GDP; disaggregation of time series; South Pacific Island Nations Handle: RePEc:otg:wpaper:0805 Template-Type: ReDIF-Paper 1.0 Author-Name: Kevin Duncan Author-Name-First: Kevin Author-Name-Last: Duncan Author-Email: kevin.duncan@colostate-pueblo.edu Author-Workplace-Name: Hasan School of Business, Colorado State University-Pueblo Author-Name: Peter Philips Author-Name-First: Peter Author-Name-Last: Philips Author-Email: philips@economics.utah.edu Author-Workplace-Name: Department of Economics, University of Utah Author-Name: Mark Prus Author-Name-First: Mark Author-Name-Last: Prus Author-Email: prus@snycorva.cortland.edu Author-Workplace-Name: Department of Economics, State University of New York, Cortland Title: The Union Threat Effect in Construction: An Illustration with Data from Plumber and Pipefitter Union Locals Abstract: Data from plumbing and pipefitting union locals are used to measure the effect of union organizing strength on the wages of high-skilled and semi-skilled nonunion workers. We find that increases in union strength are associated with higher wages for nonunion journeymen. However, the wages of lower skilled, nonunion journeymen helpers are not related to our measures of union recruitment power. These results are consistent with the organizing tactic of labor stripping where skilled nonunion workers are convinced to leave their nonunion employers and join the union. Greater union strength is not associated with higher wages for union journeymen. Rather, these workers derive increased employment opportunities where the union is strong. Our results suggest that the union threat effect is different in the construction industry where unions develop unique strategies due to the nature of the industry. Length: 23 pages Creation-Date: 2008-05 Revision-Date: 2008-05 Number: 0804 Classification-JEL: J51, J31 Keywords: union threat effect, union-nonunion wage gap, construction Handle: RePEc:otg:wpaper:0804 Template-Type: ReDIF-Paper 1.0 Author-Name: Ngo Van Long Author-Name-First: Ngo Van Author-Name-Last: Long Author-Email: ngo.long@mcgill.ca Author-Workplace-Name: Department of Economics, McGill University, Montreal Author-Name: Frank Staehler Author-Name-First: Frank Author-Name-Last: Staehler Author-Email: fstaehler@business.otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: A Contest Model of Liberalizing Government Procurements Abstract: This paper models government procurements as a contest among domestic firms, and - in case of liberalization - domestic and foreign firms. Liberalizing procurements reduces wasteful domestic lobbying but also increases the likelihood that a foreign firm will capture the rent. We show that the domestic welfare change is not monotonic in the foreign firmsÕ abilities. Domestic welfare increases only if the gross surplus generated by foreign firms is sufficiently large. Furthermore, we show that, from the global welfare point of view, domestically optimal liberalization policies can be either excessive or too restrictive. Length: 20 pages Creation-Date: 2008-01 Revision-Date: 2008-01 File-URL: http://www.otago.ac.nz/economics/research/otago077107.pdf File-Format: Application/pdf File-Function: First version, 2008 Number: 0803 Classification-JEL: F12, F13, H57 Keywords: Trade liberalization, trade in services, government procurements. Handle: RePEc:otg:wpaper:0803 Template-Type: ReDIF-Paper 1.0 Author-Name: Arlene Garces-Ozanne Author-Name-First: Arlene Author-Name-Last: Garces-Ozanne Author-Email: arlene.ozanne@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Author-Name: Phyll Esplin Author-Name-First: Phyll Author-Name-Last: Esplin Author-Email: pesplin@business.otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: To work or not to work ... that is the question: A classroom experiment on how the labour market operates Abstract: This paper presents a simple classroom experiment that helps students make economic decisions about participation in the labour market. The students are designated as workers and are given information about their skill endowments, marginal productivities and opportunity costs. The lecturer, who is the designated sole employer in this experiment, offers appropriate wage rates to the workers, knowing the workersÕ marginal productivities and the price at which output can be sold. The experiment is run for a number of periods, each period representing different conditions in the labour market, e.g., a minimum wage law is mandated by the government. During each period, the students (workers) must decide whether or not to offer their labour services based on the information they have at hand. Length: 16 pages Creation-Date: 2008-01 Revision-Date: 2008-01 Number: 0802 Classification-JEL: A20, A22 Keywords: Classroom experiment, labour market Handle: RePEc:otg:wpaper:0802 Template-Type: ReDIF-Paper 1.0 Author-Name: Niven Winchester Author-Name-First: Niven Author-Name-Last: Winchester Author-Email: niven.winchester@otago.ac.nz Author-Workplace-Name: Department of Economics, University of Otago Title: Is there a dirty little secret? Non-tariff barriers and the gains from trade Abstract: We estimate tariff equivalents (TEs) of non-tariff barriers (NTBs) using a series of gravity equations. Our analysis focuses on New Zealand, a nation that has a comprehensive free trade agreement (with Australia) that can be used to benchmark other trade negotiations. We estimate reductions in TEs following trade negotiations as differences between New Zealand-Australia TEs and those applying to trade between New Zealand and other nations. Simulating reductions in tariffs and NTBs in a computable general equilibrium (CGE) model indicates that gains from trade liberalisation are much larger when tariffs and NTBs are consider than when only tariffs are reduced. Length: 38 pages Creation-Date: 2008-01 Revision-Date: 2008-01 File-URL: http://www.otago.ac.nz/economics/research/otago077106.pdf File-Format: Application/pdf File-Function: First version, 2008 Number: 0801 Classification-JEL: F15, D58 Keywords: trade liberalisation, non-tariff barriers, computable general equilibrium modelling Handle: RePEc:otg:wpaper:0801