Tatsuo Hatta

Welfare effects of changing commodity tax rates toward uniformity

Abstract This paper presents a theory of tax reform that is applicable to a many-good economy where (i) the initial tax structure is arbitrarily given, (ii) no lump-sum tax exists, and (iii) the initial tax revenue must be maintained after the reform. Sufficient conditions are established under which tax changes definitely result in increases in welfare. They indicate that in a wide class of situations the uniform tax structure can be a useful intermediate target on the way to optimum.

The welfare effect of tariff rate reductions in a many country world

Abstract Consider a two-commodity n -country model without inferior goods where import tariffs are the only trade barriers. In this paper we establish that the worlds welfare is improved if the country with the highest tariff rate unilaterally reduce its rate to the level of the second highest country or if all the countries of the world reduce tariff rates proportionally. The second rule serves as a theoretical justification of the Kennedy and Tokyo Round Tariff Reductions.

The paradoxes of immiserizing growth and donor-enriching “recipient-immiserizing” transfers: A tale of two literatures

ZusammenfassungDas Paradoxon des Verelendungswachstums und das Paradoxon der den Geber bereichernden (den Empfänger ärmer machenden) Transfers: Eine Geschichte zweier Theorien. — Dieser Aufsatz soll eine Brücke schlagen zwischen zwei Strömungen der theoretischen Literatur, nach der Wachstum paradoxerweise zur Verelendung führt und nach der ebenfalls paradoxerweise im Falle eines Transfers der Empfänger von Leistungen an Wohlfahrt einbüΒt. Die spezifischen Fragen, die die beiden Gruppen der AuΒenhandels-theoretiker und mathematischen ökonomen stellen, reflektieren deren jeweilige Tradition. Die grundlegenden Theoreme, die abgeleitet werden, scheinen deshalb auf den ersten Blick nur wenig Beziehung zueinander zu haben. Sogar die Bedingungen, die aufgestellt werden, um in offensichtlich identischen Modellen die Paradoxa zu erreichen, scheinen gelegentlich unterschiedlich und widersprüchlich zu sein. Angesichts der zentralen Bedeutung dieser Phänomene und ihrer Analyse für mehrere wichtige Bereiche von Theorie und Politik bedarf der Gegenstand des vorliegenden Aufsatzes kaum noch einer Rechtfertigung.RésuméLes paradoxes de la croissance d’appauvrissement et des transferts enrichissants les donateurs (appauvrissants les récepteurs): un essai de deux littératures. — Dans cet article l’auteur essaie de réconcilier deux courants de la littérature théoretique sur la possibilité paradoxe d’une croissance d’appauvrissement et la possibilité paradoxe d’un récepteur appauvrissant ou d’un donateur enrichissant si un donateur fait des transferts. Les questions précises adressées par les théoriciens ont reflété leurs traditions correspondantes. C’est pourqoui, á première vue, les théorèmes centraux dérivés par eux semblent avoir peu de rapport l’un avec l’autre. MÊme les conditions établies pour obtenir les paradoxes semblent Être des fois différentes et contradictoires oÚ l’on croit d’avoir des modèles identiques. En vue de l’importance centrale de ces phénomènes et de leur analyse pour quelques aspects décisifs de la théorie et de la politique il ne faut guère justifier le but de cet article.ResumenLas paradojas del crecimiento empobrecedor y transferencias enriquecedoras del donante (empobrecedoras del receptor): un relato de dos literaturas. — El présente artfculo esta disenada para construir un puente entre dos literaturas sobre la posibilidad paradöjica de crecimiento empobrecedor y la posibilidad paradöjica de un receptor empobrecido. Las preguntas précisas formuladas por los dos conjuntos de teóricos han reflejado sus respectivas tradiciones. Los teoremas centrales derivados por ellos, por lo tanto, parecen tener a primera vista poca relacion entre ellos. Incluso las condiciones establecidas para la obtención de las paradojas, en lo que surgen ser modelos idénticos, parecen ser a momentos diferentes y contradictorias. En vista de la importancia central de estos fenómenos y su anâlisis, para varias areas criticas de la teoria y la politica, el objetivo del présente articulo prâcticamente no necesita ser justificado.

Immiserizing growth in a many-commodity setting

Abstract Mathematical economists have recently shed new light on the phenomenon of immiserizing growth, independently of the trade-theoretic literature on this subject. The present paper aims to build a beidge between the two literatures. In particular, Mantels set of sufficient conditions for non-immiserizing growth is extended to a trade-theoretic model with a smooth production frontier, and Bhagwatis trade-theoretic set of sufficient conditions to an n -commodity framework. It is shown that the condition of normality in consumption in the former substitutes for the stability condition in the latter. The concept of the semi-compensated substitutability condition plays an essential role in our analysis.

The Global Correspondence Principle: A Generalization

This paper generalizes the Global Correspondence Principle by extending, in two major ways, Samuelsons_(1971) analysis of the exchange-rate response to an international purchasing-power transfer. First, the authors analyze the price effect of a shift in anyparameter, not necessarily a transfer. Second, the authors explore the resulting adjustments in any nonprice variable such as welfare. As the analysis shows, the direction of these adjustments depends neither on whether they are small or large nor on whether equilibrium is locally stable or unstable. Thus, the authors generalize the conventional algebra of comparative statics, which typically assumes small shifts from a stable equilibrium. Copyright 1987 by American Economic Association.

Competition and nationally optimum resource allocation under the presence of urban traffic congestion

Abstract The present paper compares the market city size and the socially optimal city size in a model which allows for traffic congestion. It establishes that under the assumptions of constant returns to scale and perfect competition for commuter train companies, market forces alone will produce optimality in traffic congestion, in resource allocation for traffic facilities, and in the city size. The notion of optimality in this paper is in the sense of maximizing the welfare of the entire nation, rather than that of the city residents.

Paradoxical trade patterns and terms of trade

Abstract It is shown that, when a monopoly is present in a two-country, two-commodity world, the terms-of-trade do not necessarily fall in between the pre-trade relative prices of the two countries, and that these pre-trade prices do not unequivocally determine the pattern of trade.