• Asian Journal of Innovation and Policy
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• v.10 no.2
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• pp.212-235
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• 2021

In spite of the increasing popularity of the Ricardian model for the study of the impact of climate change on agriculture, there has been few attempts to examine the role of interregional spillovers in this framework and all of them rely on geographical proximity-based weighting schemes. We remedy to this gap by focusing on the spatial externalities of surface water flow used for irrigation purposes and demonstrate that farmland value, the usual dependent variable used in the Ricardian framework, is a function of the climate variables experienced locally and in the upstream locations. This novel approach is tested empirically on a spatial panel model estimated across the counties of the Southwest USA over 1997-2012. This region is one of the driest in the country, hence its agriculture relies heavily on irrigated surface water. The results highlight how the weather conditions in upstream counties significantly affect downstream agriculture, thus the actual impact of climate change on agriculture and subsequent adaptation policies cannot overlook the streamflow network anymore.

• Journal of Korea Trade
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• v.25 no.4
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• pp.88-107
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• 2021

Purpose - Using a model that highlights Ricardian comparative advantage and Cournot competition, I derive theoretical predictions on how bilateral measures of trade intensity, specialization, and intra-industry are interrelated, and how Ricardian productivity differences affect these measures. We test the predictions using trade and production data, and confirm them. Design/methodology - A simple two-country general equilibrium model is constructed to derive theory-based bilateral indexes. We then test the relationships among them using panel data for 35 countries and 14 industries between 1996 and 2008. Findings - Bilateral trade intensity is increasing in specialization, as in the classical trade theory, and in intra-industry trade, as in the new trade theory. However, productivity differences positively affect specialization, and negatively affect intra-industry trade. These effects cancel each other; thus productivity differences have little impact on trade intensity. Originality/value - This paper provides a comprehensive conceptual framework for understanding the relationship among trade intensity, specialization, intra-industry trade, and productivity differences. We derive theory-consistent measures of specialization, intra-industry trade, and productivity differences. Moreover, we reevaluate the empirical relevance of these variables for the study of gravity equations. This paper is also an effort to capture oligopolistic competition in a general equilibrium framework, interests in which recently resurged.

• East Asian Economic Review
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• v.23 no.1
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• pp.27-53
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• 2019

I employ search-and-matching to a multi-country and multi-sector Ricardian model with input-output linkages, trade in intermediate goods, and sectoral heterogeneity, in order to quantify the welfare effects from tariff changes. The paper shows that labor market frictions can be a source of comparative advantage in the sense that better labor market conditions contribute to lower cost in production. Labor market frictions play a critical role in determining the probability of exporting goods to trading partners, and interact with bilateral trade share, price, expenditures, etc. Unemployment and changes in unemployment rates due to tariff reductions contribute welfare changes across countries, implying that welfare effects based on quantitative trade models with full-employment are likely to be biased. I confirm the biased welfare effects by revisiting Caliendo and Parro (2015), who conduct an analysis of the welfare effects from the NAFTA from 1993 to 2005. I show that the welfare gap between theirs and mine has a positive correlation with changes in observed unemployment rates across countries. With the constructed model, I further conduct counterfactual exercises by asking what would happen if China's tariffs remain unchanged from 2006 to 2015. It turns out that there are mild welfare effects to trading partners in the world trading system.

• KDI Journal of Economic Policy
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• v.17 no.1
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• pp.127-144
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• 1995

통일기금의 목적은 현재의 소비를 줄이고 총저축(정부저축+민간저축)을 증가시키는 것이다. 그럼으로써 현재의 부(富)를 통일(統一)이 되는 시점으로 이전(移轉)시키고자 하는 것이다. 과연 이 목적은 달성될 수 있는가? 본 연구는 이에 대한 이론적인 분석을 시도하고 있다. 국채(國債)를 발행하여 조세의 부과시점(賦課時點)을 달리하더라도 경제주체의 소비수준은 변화하지 않는다는 주장이 있다(대등정리(對等定理), Ricardian Equivalence Theorem). 통일기금(統一基金)을 조성하는 것도 국채발행(國債發行)과 비교하여 부(富)의 이전방향(移轉方向)이 다를 뿐 징세시점(徵稅時點)의 변화라는 점은 동일하다. 따라서 대등정리에 의하면 통일기금의 목적은 달성될 수 없다. 조성된 통일기금만큼 민간 저축이 감소하기 때문이다. 그러나 통일기금에는 국채(國債)와 구별되는 두가지 본질적인 특징이 있다. 통일시점과 통일비용이 모두 불확실하다는 점이다. 이 두가지 불확실성은 미래의 가처분소득을 불확실하게 한다. 이와 같이 미래소득이 불확실할 때에는 대등정리가 성립하지 않는다는 것이 종래의 연구결과였다. 그러나 본고(本稿)는 2기(期) 중첩세대모형(重疊世代模型)(Overlapping Generations Model)을 이용하여 이 두가지 불확실성에도 불구하고 여전히 대등정리(對等定理)가 성립함을 보이고 있다. 즉 통일기금은 민간저축을 감소시키므로 총저축을 변화시키지 못한다.

• Asia-Pacific Journal of Business
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• v.3 no.2
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• pp.42-48
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• 2012

This paper examined structural changes in export specialization of Japan, South Korea, Taiwan, and China at different levels of technological intensity. The study found significant differences across these Asian economies, with most pronounced changes for exports with high technological intensity. To account for the changing export specialization, the study applied the classical Ricardian model of comparative advantages to export patterns of Japan and South Korea. We found that the export specialization of Japan was mainly determined by differences in fixed effects across industrial sectors, with changes in relative labor productivity much less important. In contrast, changes in productivity turned out an essential factor for explaining the recent export specialization of South Korea.

• KIPS Transactions on Computer and Communication Systems
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• v.12 no.4
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• pp.143-156
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• 2023

The domestic threat information sharing system to deal with various security threats in the rapidly changing cyber environment needs to be improved. In this study, to solve these problems and promote the activation of threat information sharing, we derive a research model based on the value-based containment model (VAM) for vital factors in information sharing. After conducting a Ricardian 5-point survey on a total of 204 individuals, the statistical results of the first 151 individuals were analyzed using SPSS and AMOS, and the statistical results of the second 204 individuals were analyzed using R-Studio. As a result, perceivability was found to have a significant impact as a core factor in the activation of cyber threat information sharing (β=0.405, p<0.01), and the hindrance factor was analyzed as innovation resistance (β=-0.152, p<0.01). Microscopically, the obtained results can be applied to factor analysis for activating information sharing of cyber threats by companies in the future, and macroscopically, they can contribute to the foundational development of a national cyber threat response system.

• KDI Journal of Economic Policy
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• v.35 no.2
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• pp.71-105
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• 2013

Now that fiscal soundness is increasingly important influenced by the euro area fiscal crisis, early budget execution has been under the spotlight as a tool for economy control, other than typical expansionary method, such as supplementary budget. Basically, early budget execution is a fiscal policy instrument that reponses to economic fluctuations through modifying the inter-temporal allocation of fiscal expenditure within budget, without affecting fiscal soundness. This study empirically examines how effective the intert-temporal reallocation of fiscal expenditure is in economy control. Using Korea's Consolidated Fiscal data, the size of inter-temporal reallocation of fiscal expenditure is defined as changes of fiscal expenditure for one year excluding seasonal factors and used to explain real economic growth rate, a dependent variable. The result shows that the macroeconomic effect of the inter-temporal reallocation turns out meaningful in general, though some policy time lag exists. Meanwhile, a simulation using macroeconomic model finds that overall effect on economic growth is not large because increase in fiscal expenditure allocation at a certain point of time is canceled by the opposite direction within the same fiscal year. However, the inter-temporal reallocation is found to reduce volatility of key macroeconomic variables so as to contribute to partially stabilizing macroeconomy. In particular, such effect of economic stabilization seems to be highly apparent at the time of financial crisis, but not very noticeable in normal economic cycle.