• The Journal of Asian Finance, Economics and Business
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• v.4 no.2
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• pp.25-36
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• 2017

Subsidies are an instrumental policy making tool for many governments, but their importance depends on the market situation of the national economy. Efficient subsidy implementation would allow the government to correct market failure thereby aligning social and private costs and benefit. The general objective of this study is to justify the need to rationalise subsidies for food items such as flour. This study assessed the structure and conducts of the general purpose flour market in Malaysia; and analysed the impact of subsidies on market performance to recommend policies to increase market efficiency under the subsidy rationalisation program. To accomplish these objectives, the study adopted a microeconomics market analysis as well as the standard structure and performance analysis method. These two approaches showed the characteristics of an industry's consumer behaviour, competition, as well as the efficiency associated with government regulatory policies on the flour industry. One of the biggest influences on the domestic market is related to the food consumption behaviour of the general population. Food consumption behaviour reflects global trends. As income rises, food trends tend to be consumed in processed form or in such a way that adds value in another manner such as the preparation of food products.

• Journal of the Korean Regional Science Association
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• v.9 no.2
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• pp.59-69
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• 1993

This paper empirically analyzes economic impacts of policy instruments and suggests policy alternations to improve the urban poor's alternatioes to improve the urban poor's standard of living in Korea. By estimating a joint decsim model of hours of work and housing demand utilizing a sample of 270 urban poor housholds, the study finds that the efects of policies dre diverse. The dncome subsidy to msst effectwe in increasing comsumption while the wage increase is least likely to decrease hours of work. Policy suggection are firstly that policies to ward the urban poor should hot be overlapping or contradictory, and secondly that the policies should be able to increase the poor's wage earning abiliby.

• Korean Journal of Organic Agriculture
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• v.19 no.spc
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• pp.92-95
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• 2011

The initial investment of rice cultivation by mechanical technique was high. This was only due to the cost of planting machine. We analysed the overall cost (without machine cost) and benefits of the two methods, it manifested that the mechanical method is very much beneficial over traditional rice cultivation technique. We observed that the requirement of soil, irrigation water, number of seeds etc. decreased in mechanical cultivation technique while net income increase by 13.07% with 80% government subsidy. Furthermore, the initial rooting was quicker, growth and development of pot raised seedlings was better than the traditional technique. Hence, this technique can give better return to the farmers with the help of government subsidy.

• KDI Journal of Economic Policy
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• v.33 no.2
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• pp.111-143
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• 2011

As the 'jobless growth' is developing into a worldwide phenomenon, many countries try to recover a virtuous relationship between the growth and employment using various wage subsidy programs. This study focuses on wage subsidy to employers, labor demand-side wage subsidy for which one can think of two types-a tax credit(a flat wage subsidy) and a social insurance premium exemption(a proportional wage subsidy). For job creation, Korean government reintroduced a tax credit to small and medium-sized enterprises(SMEs) which have increased their employment level in 2010. But many experts has continuously insisted that it should be replaced with a social insurance premium exemption arguing only a few SMEs benefit from the tax credit as most of them are actually not paying any corporate or general income tax bills. However, as the insurance premium exemption accompanies an increase in the amount of budget with the coverage widen, one cannot confirm its cost effectiveness over the tax credit. This paper aims to provide a theoretical analysis to derive some formal conditions under which a social insurance premium exemption creates more jobs than a tax credit does given a budget constraint. We show that the former's dominance over the latter depends on whether there exists a dead zone of social insurance or not. If there does not exist a dead zone, a social insurance premium exemption is more desirable in many cases, whereas one cannot guarantees its dominance over a tax credit if there exists a dead zone. Therefore in order to realize its dominance, the government should minimize a dead zone so that most SMEs effectively benefit from the insurance premium exemption. In addition, applying discriminative exemption rates which reflect each firm's job conditions such as wage level and labor demand/supply sensitivity, the government try to enhance job creation effect.

• Korean Journal of Human Ecology
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• v.2 no.1
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• pp.1-11
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• 1999

This study was to compare the income and financial assets of the Salary Earner and those of Self-Employed households. The data was drawn from the Korean Household Panel Study(KHPS) that was surveyed by Daewoo in 1995. The major findings were as follows: 1. All households were holding salary/business income, and the average of salary/business income of Salary earner household and Self-employed household were found to be 1,580,000 won and 2.050,000 won respectively. 2. Households were holding saving accounts most in both groups. 3. The yearly financial income, yearly immovable property income, and the yearly annuity income were correlated with yearly subsidiary income. The yearly financial income were correlated with the yearly annuity and yield from bonds. There were negative relationships between the yearly annuity and yield from bonds. The yearly miscellaneous income was correlated with the yearly yield from stock. There were negative relationships between the yield from stock and bonds in Salary-Earner households. 4. The yearly subsidiary income and yield from bonds were correlated with monthly business income. The yearly annuity and yearly total amounts of saving accounts were correlated with yearly subsidy income. The immovable property, the yearly yield from stock and bonds were correlated with the yearly financial income. The yearly yield from stock and bonds were correlated with the immovable property and the yearly annuity income. The yearly misellaneous and total amounts of saving accounts were correlated with the yearly yield from stock and bonds. The Yearly yield from stock was correlated with yield from bonds in Self-Employed households. (Koran J of Human Ecology 2(l) : 1-11, 1999)

• Journal of Environmental Policy
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• v.7 no.2
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• pp.1-32
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• 2008

This study examined the income distribution effect of the environmental taxes in the energy sector by applying the Urban Family Survey and the Household Income and Expenditure Survey to the Kakwani index. The results analyzed are as follows: first, taxes of the non-transportation energy sector show progressive tax schemes, while those of transportation energy show regressive ones. Second, we calculated the scenario-specific progressivity index on basis of the existing energy price structure. Contrary to the previous works claimed to be regressive, the progressivity in scenario I got higher than before, except for the congestion taxes. Also, the index by the total sum of taxes in scenario II showed just a little bit higher progressive tax system. In scenario III, both the value added tax and the total sum of taxes have a little regressive structure, but the indexes in the environmental taxes, heat capacity taxes, and those which the environmental tax and the congestion tax and heat capacity taxes are summed up, are in general progressive. Third, subsidizing the tax revenues raised from the environmental taxes to the poor classes by a simulation approach shows more progressive as expected, implying the more subsidy the higher the progressivity index. As a result, it is said that the implementation of the environmental taxes has no negative impact on the income distribution, and the subsidy of the tax revenue raised from it to the poor can make the income inequality improve.

• East Asian Economic Review
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• v.24 no.3
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• pp.237-252
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• 2020

This paper characterizes the optimal reciprocal trade policy in the environment of Melitz (2003) with firm productivity heterogeneity. In particular, without making parametric assumptions on firm productivity distribution, this paper derives the optimal degree of reciprocal tariff reductions that maximize the world welfare. A reciprocal import subsidy raises the industry productivity, lowering aggregate price; a reciprocal import tariff helps correct the markup distortion, increasing nominal income. With all the conflicting effects of import tariffs on welfare considered, the optimal degree of reciprocity in multilateral tariff reduction is shown to be free trade.

• Journal of Labour Economics
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• v.37 no.1
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• pp.29-57
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• 2014

Using unemployment insurance and income-contingent loan (ICL) that conditions repayment by debtors upon their incomes this paper characterizes an efficient income support system for the unemployed, which maximizes their lifetime utilities by effectively enhancing inter-state and inter-temporal consumption-smoothing subject to incentive constraints on the part of the beneficiaries. This paper also emphasizes the generality of the argument for a mix of ICL and subsidy that may be applied potentially to many types of government welfare program.

• KIEAE Journal
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• v.14 no.3
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• pp.39-45
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• 2014

Energy poverty has been defined as low-income households who paid energy cost more than 10% of their ordinary income. Therefore, there are various subsidy programs focused on house remodeling for low-income households and one of them is the Home Energy Efficiency Assistance Program which have done by Korea Energy Foundation since 2007. The aim of the program is to improve the thermal performance of dilapidated dwellings and analyzed the detached house for the low-income households to develop the building typology. The database contained approximately 3,061 households which was obtained from the program in 2013 and the results of the study were like this; 1) For the shape of residential houses, the number of rectangular shaped building was higher than non-rectangular shaped ones. 2) For the orientation of buildings, the south layout of the detached housing was dominant to gain heating energy into buildings. 3) For the floor area, the average floor area was $44.2m^2$, although its size varied wide variations, which range from $6.3m^2$ to $107.1m^2$. 4) For the windows and doors, the south-facing window was larger than the other side. Finally it would be possible to determine the characteristics of residential houses for low-income families. A future study could establish typology of low-income housing that it would estimate the performance of each model building before and after the retrofit to improve the energy performance.

• Korean Journal of Social Welfare
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• v.63 no.3
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• pp.187-211
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• 2011

This study examines the effects of active labor market policy on unemployment by pooled cross-section time series analysis utilizing panel data of 18 OECD countries, and seeks implications for improvements of the Korean active labor market policy. The results of the analysis are summarized as follows. First, active labor market policy negatively affects unemployment rates. Second, vacational training program among three major active labor market programs has a negative effect on unemployment rates. Third, employment service program and employment subsidy program have partially negative effects on unemployment rates. The implications for the Korean active labor market policy are as follows. First, it is necessary to expand and systematize active labor market policies. Second, vocational training programs should be systematized and professionalized according to labor demand. Third, employment subsidy programs need to be planned and carried out under the condition of minimizing a substitution effect, a displacement effect and a deadweight loss effect. Fourth, employment service programs need to be developed and carried out under the consideration of not only the reduction of unemployment rates but also the prevention of re-unemployment, mitigation of income inequality and improvement of productivity.