Shino Takayama

Social choice correspondences with infinitely many agents: serial dictatorship

We study social choice correspondences (SCC) assigning a set of choices to each pair consisting of a nonempty subset of the set of alternatives and a weak preference profile. The SCC satisfies unanimity if when there is a weakly Pareto dominant alternative, the SCC selects this alternative. Stability requires that the SCC is unaffected by withdrawal of losing alternatives. Independence implies that the SCC selects the same outcome from a subset of the set of alternatives for two preference profiles that are the same on this set. We characterize the SCC satisfying the three axioms, when the set of alternatives is finite but includes more than three alternatives, and the set of agents can have any cardinality. We show that the SCC is a serial dictatorship à la Eraslan and McLennan (J Econ Theory 117:29–54, 2004) and that a serial dictatorship can include “invisible serial dictators” à la Kirman and Sondermann (J Econ Theory 5:267–277, 1972).

A Trade and Welfare Analysis of Tariff Changes Within the TPP

Abstract This paper examines the effects of the Trans-Pacific Partnership (TPP) tariff reductions on trade flows and welfare of the TPP members and nonmembers following the Caliendo and Parro (2015) method. We use comprehensive sectoral data on 39 countries and the rest of the world, including those in the Association of Southeast Asian Nations (ASEAN) and the Organization for Economic Co-operation and Development (OECD). Our results show that many TPP nonmembers along with the TPP members gain from the TPP tariff reductions, suggesting the existence of a positive externality, with the welfare gains mainly arising from the changes in the terms of trade. Our analysis also shows that the TPP members increase their imports from other TPP members and decrease from non-TPP members, but the trade creation effects exceed the trade diversion effects. Our calibration results under various assumptions of the model emphasize the role of multiple sectors and sectoral linkages in the welfare analysis of the TPP tariff reductions.