About JDIEP Programs PIAR Program PM Program Apply Faculty Members Our Alumni Research Contact Us Links      Development Discussion Papers  Publications Search by title, keywords, abstract: "Infrastructure Choices in Education: Location, Build or Repair" ARMIN ZEINALI, GLENN P. JENKINS, ANDREY KLEVCHUK Development Discussion Paper Number: 2009-2 More » Infrastructure Choices in Education: Location, Build or Repair ARMIN ZEINALI Department of Economics, Queen´s University, Canada GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. ANDREY KLEVCHUK Cambridge Resources International Inc. Development Discussion Paper: 2009-2 Abstract: The purpose of this study is to develop a model to arrive at a joint optimizing strategy for the use of a given capital budget for the construction of new school buildings and for the repair of the already existing schools. This is to be done in a way that will have the maximum positive impact on the enhancement of the education system. Cost effectiveness analysis is used as the main analytical tool in the analysis. A key factor of the model is that it gives one the optimal mix of repair versus new construction that should be undertaken under a fixed budget constraint. The model is simulated using a sample data set from the information available for the education sector of Limpopo Province, South Africa. It utilizes a very basic set of information that is available in all school districts across the province. Application of this model for the selection of infrastructure investments (either building or repair) in the education sector would increase the efficiency of capital expenditure in this sector. This is particularly the case for the countries that are faced with a large excess demand for school buildings. JEL Code(s): D61, I28, H52, H75 Keywords: education, cost effectiveness, school location, school construction, school repair, South Africa Download: qed_dp_158.pdf Close » "POWER PURCHASE AGREEMENTS FOR RISK AND RENT SHARING IN HIMALAYIAN HYDROPOWER DEVELOPMENTS" D.N.S. DHAKAL, GLENN P. JENKINS Development Discussion Paper Number: 2009-1 More » POWER PURCHASE AGREEMENTS FOR RISK AND RENT SHARING IN HIMALAYIAN HYDROPOWER DEVELOPMENTS D.N.S. DHAKAL Duke Center for International Development, Duke University, USA GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. Development Discussion Paper: 2009-1 Abstract: The Himalayan Rivers have an enormous hydropower potential that is still not exploited fully for the benefit of the region. Bhutan and Nepal together have an economically feasible potential of 60,000 MW of hydroelectric power generation capacity but are too weak financially to bear alone the risks associated with the development of their hydro resources. India is the only potential market for the electricity supplied from these sources. The power purchase agreement framework for the 336 MW Chukha Hydel Project in Bhutan could serve as a model with regards to the transfer of risks, management of risks, and sourcing of finance in exchange for the sharing of the economic rents associated with such projects. India undertook the costs and risks of constructing the hydroelectric dam and power plant in exchange for a reduced purchase price of electricity from the completed facility. This paper contains a financial and economic assessment of the Chukha Hydel Project. While India is in a position to exercise monopsonic power in this electricity market, this analysis shows that it is possible to have an agreement for sharing of the risks and returns between India and the Himalayan countries that is highly beneficial to all the stakeholders. JEL Code(s): H43, Q42 Keywords: power purchase agreement, Himalayas, hydropower, electricity, Bhutan, India, electricity exports, risk sharing, economic rents Download: qed_dp_157.pdf  Excel file Close » "Canadian Regulatory Cost-Benefit Analysis Guide" GLENN P. JENKINS, CHUN-YAN KUO, JOHN GIRALDEZ Development Discussion Paper Number: 2007-3 More » Canadian Regulatory Cost-Benefit Analysis Guide GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. CHUN-YAN KUO Queen´s University, Canada. JOHN GIRALDEZ Treasury Board Secretariat Government of Canada Development Discussion Paper: 2007-3 Abstract: This Regulatory Cost-Benefit Analysis Guide was prepared for the use of federal departments and agencies as they perform cost-benefit analysis to determine the potential impact of regulatory decisions. The guide incorporates the evolution of regulatory policy and developments in the analysis of the impacts of regulations in Canada and elsewhere over the past decade. Such an analysis highlights the importance of identifying and measuring the economic benefits and costs as an essential input into the design process of such regulatory actions. The increased interest of governments in the consequences of regulation has led to the development of various cost-benefit analysis guides in countries such as the United States, Australia, and EU as well as by international organizations. This is the discussion version of the proposed cost benefit guide for the evaluation of regulatory proposal in Canada. Produced for: The Treasury Board of Canada, Secretariat JEL Code(s): H43 Keywords: cost-benefit analysis of regulations, cost effectiveness analysis, impact analysis, economic analysis, stakeholder impact, risk assessment Download: qed_dp_168.pdf Close » "Information, Corruption, and Measures for the Promotion of Manufactured Exports" CHUN-YAN KUO, GLENN P. JENKINS Development Discussion Paper Number: 2007-2 More » Information, Corruption, and Measures for the Promotion of Manufactured Exports CHUN-YAN KUO Queen´s University, Canada. GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. Development Discussion Paper: 2007-2 Abstract: There has been a growing emphasis in many developing countries on export-led growth policies that attract both domestic and foreign investment into activities that will increase exports. Many countries, however, have not achieved the desired response. Among other problems, investors often face foreign exchange controls, tariffs on imported inputs, and a costly system for the exemption or refund of sales inflow of foreign investment and prevented the expansion of export production and sales. This paper addresses two issues related to the design and administration of the fiscal provisions that affect the competitiveness of country in the production of manufactured exports. The first issue is how to design a system that allows exporters to sell their output free of the burden of domestic sales taxes. The second issue is how to relieve exporters from the burden of import tariffs levied on inputs used in the production of exports. In this study, we also provide a synthesis of how a number of developing countries have tried to address these issues. We identify the elements of the administrative system needed to deliver effectively the VAT input tax credit refunds and to eliminate the burden of import duties on inputs used in exports. Emphasis will be placed on the information needs for their effective administration. These findings might prove helpful to policymakers who are faced with the development of institution to administer such border tax adjustments. Published in: The Economics of Transparency in Politics, Ashgate Publishing, Ltd. JEL Code(s): H43 Keywords: information, corruption, foreign exchange, tariff, tax Download: qed_dp_159.pdf Close » "Diagnosis of Indirect Taxes and the Taxation of International Trade in the Dominican Republic" GLENN P. JENKINS, CHUN-YAN KUO, ANDREY KLEVCHUK Development Discussion Paper Number: 2007-1 More » Diagnosis of Indirect Taxes and the Taxation of International Trade in the Dominican Republic GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. CHUN-YAN KUO Queen´s University, Canada. ANDREY KLEVCHUK Cambridge Resources International Inc. Development Discussion Paper: 2007-1 Abstract: In preparing this paper, the indirect tax systems in the Dominican Republic are examined both in terms of tax policy and also their revenue importance. These taxes include the taxation of import, value added (ITBIS), selected excise taxes, exit and entry taxes (tourism taxes), and the taxation of casinos and games of chance. The focus are both on the short-term revenue requirements of the government as well as on the tax reform measures that are needed in order to meet the longer term revenue requirements of the public sector. These reforms are taking place in an environment where tariff and institutional barriers to international trade are being reduced. Report prepared for: Inter American Development Bank on behalf of the Government of the Dominican Republic, February 2007. JEL Code(s): H20, H24 Keywords: taxation, income tax, excise taxes, value added tax, taxation of international trade, trade liberalization, economic integration. Download: qed_dp_146.pdf Close » "EXPENDITURE POLICY TO PROMOTE GROWTH: CAMBODIA" GLENN P. JENKINS, ANDREY KLEVCHUK Development Discussion Paper Number: 2006-2 More » EXPENDITURE POLICY TO PROMOTE GROWTH: CAMBODIA GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. ANDREY KLEVCHUK Cambridge Resources International Inc. Development Discussion Paper: 2006-2 Abstract: The objectives of this paper are to identify the most important constraints to achieving higher rates of pro-poor growth in Cambodia, and to propose some public sector expenditure policies that might address these constraints. The approach taken in this study is to look at the objectives, size, composition, and financing of government expenditures since the late 1990s to the present time. There are three problems facing Cambodia that we take up in this paper that public sector expenditure policies in the next years should address. First, there is a high incidence of poverty, particularly in the rural areas (90 percent of the poor), with at least 4 million in 2000 falling below the poverty line. Much of this poverty is caused by the lack of food security. Second, the system of public administration is weak. Third, the amount and quality of the infrastructure is very low outside of the main cities. Prepared for: The World Bank Cambodia Mission Phnom Penh, Cambodia, September 2006. JEL Code(s): I32, I38 Keywords: Cambodia expenditure allocation, administrative reform, pro-poor growth, poverty alleviation. Download: qed_dp_148.pdf Close » "FISCAL ADJUSTMENT FOR SUSTAINABLE GROWTH IN BELIZE" GLENN P. JENKINS, CHUN-YAN KUO Development Discussion Paper Number: 2006-1 More » FISCAL ADJUSTMENT FOR SUSTAINABLE GROWTH IN BELIZE GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. CHUN-YAN KUO Queen´s University, Canada. Development Discussion Paper: 2006-1 Abstract: This report studies the revenue requirement of the Government of Belize in short term as well as the tax reform measure needed to face the longer term revenue requirements of the public sector in an environment where tariffs to international trade are being reduced. The study update a similar study conducted in 2002, which examined the elements of tax design, administration, and its effectiveness in revenue mobilization. Issued as: "Fiscal Adjustment for Sustainable Growth in Belize", (with Chun-Yan Kuo), Inter-American Development Bank, October 2005. JEL Code(s): H20 Keywords: fiscal adjustment, sustainable growth, Belize Download: qed_dp_145.pdf Close » "TAX EXPENDITURES IN THE DOMINICAN REPUBLIC" GLENN P. JENKINS, CHUN-YAN KUO Development Discussion Paper Number: 2005-1 More » TAX EXPENDITURES IN THE DOMINICAN REPUBLIC GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. CHUN-YAN KUO Queen´s University, Canada. Development Discussion Paper: 2005-1 Abstract: This paper takes a broad approach in the sense that only the fundamental structure elements of each tax system are considered as part of the benchmark tax system. Moreover, this paper will go beyond the traditional tax expenditure reporting by taking into account an ideal tax system with minor distortions as part of the benchmark. Because of having an ideal tax system as a norm, the report makes some judgments about the appropriateness of the ideal tax structure in the Dominican Republic and the estimates of tax expenditures imply the extent to which the existing tax system is deviated from the ideal tax system. This paper provides empirical estimates of the foregone tax revenue of each tax provision for the year 2002 which deviates from the benchmark of the tax system. The tax systems we examine include the individual income tax, the corporate income tax, the tax on the transfer of industrialized goods and services (ITBIS), the selective tax on consumption, and import duties. In the other part of this paper we discuss the concept of the tax expenditures in order to facilitate the understanding and estimation of the tax expenditures. Finally this paper presents preliminary estimates of the foregone revenues of tax expenditures. Prepared for: The Government of the Dominican Republic and the Inter American Development Bank. JEL Code(s): H20, H21, H24 Keywords: Dominican Republic, tax expenditures, individual income tax, corporate income tax, import duty. Download: qed_dp_154.pdf Close » "The Economic Cost of "Clever" Tax Administration Ideas" GLENN P. JENKINS, BAHRO A. BERHAN Development Discussion Paper Number: 2004-2 More » The Economic Cost of "Clever" Tax Administration Ideas GLENN P. JENKINS Eastern Mediterranean University, North Cyprus. BAHRO A. BERHAN Eastern Mediterranean University, North Cyprus. Development Discussion Paper: 2004-2 Abstract: In the 1980´s it was popular to introduce incentive systems for the promotion of taxpayer compliance. The partial VAT refunds for consumer purchases that are examined in this paper represent one of such schemes. The partial VAT refund system was an idea that was popular amongst professional tax administrators in the 1980s and as a consequence was implemented throughout Central America, Bolivia and Turkey. Such proposals were made with little or no research on the compliance or economic costs that such provisions create. The objective of this study is to measure the compliance costs incurred by the private sector and to measure the administrative costs incurred by the tax authorities in their effort to issue partial VAT refunds for private consumption purchases in Northern Cyprus. Based on the survey of those participating in the scheme, the results indicate that the total compliance and administration costs incurred in North Cyprus in 2003 to run its VAT refund scheme was over US$4.5 million, an amount equal to 1.5 times the total budgetary expenditures made to administer all the domestic taxes in the country, or about 5 percent of the total revenues raised by the VAT in 2003. These results indicate how dangerous it is to introduce indirect tax enforcement measures without first undertaking a careful evaluation of the compliance costs that such measures impose. From an economic perspective, these costs are a complete waste scarce economic resources. Published At: Review of Social, Economic & Business Studies, Eastern Mediterranean University Press,Vol.5/6, 89 - 104 JEL Code(s): H20 Keywords: Compliance Costs, Administration Costs, Value Added Tax, Refunds. Download: qed_dp_155.pdf Close » "Fiscal Adjustment for Sustainable Growth in the Dominican Republic" HECTOR GUILIANI CURY, GLENN P. JENKINS, CHUN-YAN KUO Development Discussion Paper Number: 2004-1 More » Fiscal Adjustment for Sustainable Growth in the Dominican Republic HECTOR GUILIANI CURY Deputy Economy and Finance, Central Bank of Dominican Republic. GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. CHUN-YAN KUO Queen´s University, Canada. Development Discussion Paper: 2004-1 Abstract: In preparing this paper we have examined all the major tax systems in the Dominican Republic except the property tax. Our focus was both on the short term revenue requirements of the government as well as on the tax reform measures that are needed in order to meet the longer term revenue requirements of the public sector in an environment where tariff and institutional barriers to international trade are being reduced. Report prepared for: Government of the Dominican Republic, March 2004. JEL Code(s): H20, H23, H24 Keywords: Dominican Republic, tax reform, individual income tax, corporation income tax, value added tax, excise tax, taxation of international trade, taxation and economic integration. Download: qed_dp_149.pdf Close » "Alleviating Traffic Congestion in Manila, Appraisal of the Pasig Expressway" BAHER EL-HIFNAWI, GLENN P. JENKINS Development Discussion Paper Number: 2002-11 More » Alleviating Traffic Congestion in Manila, Appraisal of the Pasig Expressway BAHER EL-HIFNAWI Cambridge Resources International Inc. GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. Development Discussion Paper: 2002-11 Abstract: Travel in Metro Manila at present is characterized by high levels of congestion, slow travel speeds, long journey times and limited road capacity. The situation will be further exacerbated due to the expected growth in population and income and the subsequent increase in car ownership. Localized traffic management schemes are no longer sufficient to solve the problem. Solutions on the demand side curbing the demand for car ownership and use should be considered together with solutions on the supply side that involve the provision of new road space. This study completed an integrated financial, economic, stakeholder, sensitivity and risk analysis of the proposed modified version of the Pasig expressway. Prepared for: National Economic Development Authority, Government of the Philippines. JEL Code(s): H43 Keywords: Philippines, cost benefit analysis, evaluation of road, traffic congestion. Download: qed_dp_166.pdf  Excel file Close » "Investment Appraisal of an Animal Feed Plant in South Africa" GLENN P. JENKINS, ANDREY KLEVCHUK Development Discussion Paper Number: 2002-10 More » Investment Appraisal of an Animal Feed Plant in South Africa GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. ANDREY KLEVCHUK Cambridge Resources International Inc. Development Discussion Paper: 2002-10 Abstract: Limpopo Province of South Africa has been successful in recent years in attracting domestic and foreign investors. One of the priority sectors favored by the provincial development strategy is agriculture, and the proposed animal feed plant is a commercial project falling under the umbrella of those projects encouraged by the Provincial Government. At the same time, this project is owned and financed by a foreign investor, hence, making it eligible for the direct foreign investment (FDI) support scheme provided by the National Government. This study is an integrated financial, economic, stakeholder, sensitivity and risk analysis of the proposed animal feed plant in Polokwane Municipality of Limpopo Province. The plant is going to enter an existing industry where a number of domestic manufacturers already compete for consumers. The most likely impact on the industry will be a reduction in the market share held by the existing feed producers. Report prepared for: Department of Finance and Economic Development Limpopo Provincial Government Republic of South Africa. JEL Code(s): H43 Keywords: cost-benefit analysis, industrial development, animal feeds plant, foreign investment. Download: qed_dp_163.pdf  Excel file Close » "The Cadiz City Fishing Port Complex Project" GLENN P. JENKINS, BAHER EL-HIFNAWI Development Discussion Paper Number: 2002-9 More » The Cadiz City Fishing Port Complex Project GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. BAHER EL-HIFNAWI Cambridge Resources International Inc. Development Discussion Paper: 2002-9 Abstract: The Nationwide Fishing Ports Development Project (also called the Fishing Ports Project, Package II) is a major undertaking of the Philippine Government to establish the necessary network of facilities that will encourage higher and more efficient fish production in the country. The project involves development of commercial and municipal fishing port complexes in identified regional consumption centers. The project is part of the Integrated Fishery Development Plan, a component plan of the country’s 1992-1996 medium term economic development plan. This paper evaluates the government’s plan to implement the fishing port complex project in Cadiz City. The proponents of the project are the Philippine Department of Transportation and Communication (DOTC) and the Philippine Fisheries Development Authority (PFDA), a government-owned and controlled corporation (GOCC) under the jurisdiction of the Department of Agriculture. Prepared for: National Economic Development Authority, Government of Philippines. JEL Code(s): H40, H43 Keywords: Philippines, integrated investment appraisal, port investments. Download: qed_dp_164.pdf  Excel file Close » "Upgrading the Health System in Benguet Province, An Analysis of the Province´s Tertiary Hospital Project" BAHER EL-HIFNAWI, GLENN P. JENKINS Development Discussion Paper Number: 2002-8 More » Upgrading the Health System in Benguet Province, An Analysis of the Province´s Tertiary Hospital Project BAHER EL-HIFNAWI Cambridge Resources International Inc. GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. Development Discussion Paper: 2002-8 Abstract: The province of Benguet is lacking in medical health services. The province has 165 public hospital beds, of which no more than 138 are in use, and 171 private hospital beds. While total number of beds is 336, the actual number in use is 309 beds. The inadequate number of beds coupled with the lack of tertiary health services has resulted in over 2000 patients a year being sent to the Baguio General hospital and Medical Center in Baguio further increasing the overcrowding in the Baguio hospital and imposing additional costs on patients in Benguet. This study completed an integrated financial, economic, stakeholder, sensitivity and risk analysis of the project which targets to complete the referral structure by raising the quality and quantity of medical services that can be offered at the Benguet General Hospital to the level of a tertiary medical facility. Report prepared for: National Economic Development Authority, Government of the Philippines. JEL Code(s): H40, H43, H44 Keywords: Philippines, investment appraisal, health sector, hospital evaluation. Download: qed_dp_165.pdf  Excel file Close » "A STRATEGY FOR THE ENHANCEMENT OF THE TAX SYSTEM IN THE KYRGYZ REPUBLIC" GLENN P. JENKINS, IGNATIUS PEPRAH Development Discussion Paper Number: 2002-7 More » A STRATEGY FOR THE ENHANCEMENT OF THE TAX SYSTEM IN THE KYRGYZ REPUBLIC GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. IGNATIUS PEPRAH Independent Economic Consultant. Development Discussion Paper: 2002-7 Abstract: The purpose of this paper is to provide analysis and specific recommendations for enhancing the tax system in ways that are consistent with the general objectives set out in the Comprehensive Development Framework of the Kyrgyz Republic. These recommendations are designed to fit within the guidelines set out in the Comprehensive Development Framework (CDF) – Sustainable Economic Growth and Development, Fiscal Policy. In addition it both supplements and comments on the proposals outlined in the government´s report on Tax Policy Concept in the Kyrgyz Republic. The objectives of the reforms proposed in this paper are both to enhance the ability of the tax system to generate revenue, while creating a modern system of tax administration that is free of arbitrary decision making that impedes business activities by imposing high compliance costs. Prepared for: The government of the Kyrgyz Republic and the World Bank. JEL Code(s): H20 Keywords: Kyrgyz Republic, tax policy, tax administration, value added tax. Download: qed_dp_153.pdf Close » "Review of Value Added Taxation in TRNC" GLENN P. JENKINS Development Discussion Paper Number: 2002-6 More » Review of Value Added Taxation in TRNC GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. Development Discussion Paper: 2002-6 Abstract: The value added tax system in North Cyprus is somewhat unique. It has a very high degree of legal coverage of goods and services in the economy and instead of exempting certain sectors from taxation; they are taxed at lower rates. At the same time the administration of the tax relies heavily on the characteristics of North Cyprus that arise because it is a small island economy. Overall the tax design of the VAT in the TRNC is one of the most comprehensive in the world, and its evolution to date has been to strengthen rather than weaken the value added tax system. In many ways it is a legal model that could be followed by many developing countries facing similar economic circumstances. However, the resolve of the government to administer the system according to the design has certain deficiencies. In this paper we discuss the strength and weaknesses of taxing system in TRNC and offer some recommendations. Prepared for: The Department of Taxation of the Ministry of Finance, TRNC. JEL Code(s): H20 Keywords: North Cyprus, tax system, value added tax, revenue collection efficiency. Download: qed_dp_152.pdf Close » "MACROECONOMIC STRUCTURAL AND SECTORAL CONSTRAINTS IN THE KYRGYZ REPUBLIC" GLENN P. JENKINS, IGNATIUS PEPRAH Development Discussion Paper Number: 2002-5 More » MACROECONOMIC STRUCTURAL AND SECTORAL CONSTRAINTS IN THE KYRGYZ REPUBLIC GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. IGNATIUS PEPRAH Independent Economic Consultant. Development Discussion Paper: 2002-5 Abstract: The strategy for economic growth and development in the Kyrgyz Republic stated in the Comprehensive Development Framework (CDF) is to make the private sector the engine of growth. The CDF report also discusses mining, tourism and other export generating activities as well as domestic economy-oriented activities. However, in this paper we propose that the country should put more emphasizes on export promotion by adopting an Export-Oriented Private Sector-led Growth Strategy explicitly in the CDF document for many reasons which are mentioned. Prepared for: The Government of the Kyrgyz Republic. JEL Code(s): H20 Keywords: Kyrgyz Republic, fiscal adjustments, public infrastructure, privatization. Download: qed_dp_151.pdf Close » "A STRATEGY FOR THE ENCOURAGEMENT OF FOREIGN INVESTMENT IN THE KYRGYZ REPUBLIC" GLENN P. JENKINS, IGNATIUS PEPRAH Development Discussion Paper Number: 2002-4 More » A STRATEGY FOR THE ENCOURAGEMENT OF FOREIGN INVESTMENT IN THE KYRGYZ REPUBLIC GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. IGNATIUS PEPRAH Independent Economic Consultant. Development Discussion Paper: 2002-4 Abstract: The Comprehensive Development Framework (CDF) of the Kyrgyz Republic indicates clearly the desire and the need to attract additional direct foreign investment to the country. The need for foreign investment is for at least two reasons. First, it is needed to improve the efficiency and competitiveness of the Kyrgyz economy through the introduction of new technology, management know-how and access to external markets in order to stimulate economic growth. Second, it is needed to provide the financial investment in order to help offset the reduction in the level of public investment needed to facilitate macro-economic stabilization and ease the public debt service limitations facing the government To realize this goal it will require a systematic and organized effort on the part of the government. The factors that are important to direct foreign investors vary considerably given the nature of the activity the investor wishes to engage in. For the purposes of designing appropriate policies it is useful to divide these activities into four general classes. Some of the factors that are important in the design of policies to attract each of these types of foreign investments are reviewed in this paper. Prepared for: The government of the Kyrgyz Republic and the World Bank. JEL Code(s): F21 Keywords: Kyrgyz Republic, foreign investment, economic growth. Download: qed_dp_150.pdf Close » "ECONOMIC INTEGRATION AND THE TRANSFORMATION OF THE TAX MIX: CYPRUS 1990-2001" GLENN P. JENKINS, GEORGE G. POUFOS Development Discussion Paper Number: 2002-3 More » ECONOMIC INTEGRATION AND THE TRANSFORMATION OF THE TAX MIX: CYPRUS 1990-2001 GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. GEORGE G. POUFOS Inland Revenue Department, Republic of Cyprus. Development Discussion Paper: 2002-3 Abstract: This paper outlines the steps that the Government of Cyprus took to transform its tax system between 1990 and 2001 in order to prepare itself for admission into the European Union. Cyprus has many of the same economic features as the countries of the Caribbean and Central American regions. In the case of Cyprus, the reforms were focused on the introduction and expansion of the Value Added Tax, a restructuring of the excise tax system and a modernization of its income tax system. By 2002 it has virtually completed the transformation process. The paper also discusses the situation of Belize, which is just beginning a similar transformation. Although the required changes might appear very large, a set of reasonable options are presented for consideration. Presented at: Tax Workshop Trade and Integration Network of the Regional Policy Dialogue, Inter-American Development Bank, Washington DC September, 2002. JEL Code(s): H20, H30 Keywords: Cyprus, Economic Integration, Tax Mix, Belize, Fiscal Adjustment Download: qed_dp_147.pdf Close » "REENGINEERING TAX SYSTEMS IN LOW-INCOME COUNTRIES: AN APPLICATION TO NEPAL" GLENN P. JENKINS, RUP KHADKA Development Discussion Paper Number: 2002-2 More » REENGINEERING TAX SYSTEMS IN LOW-INCOME COUNTRIES: AN APPLICATION TO NEPAL GLENN P. JENKINS HIID, Harvard University. RUP KHADKA HIID, Harvard University. Development Discussion Paper: 2002-2 Abstract: Reengineering or reforming a tax system in low-income countries such as Nepal Malawi or Bolivia is a more challenging, or a more interesting, task than undertaking a tax reform in a typical high income industrial country. The greatest challenge is to design a tax system that will appropriately fit both segments of these dual economies: the modern sector and the traditional-agricultural-informal sector. Furthermore, the participants in these two groups are constantly changing with people moving from the countryside to work in the urban areas: often moving eventually into the modern industrial sector. Similarly, some informal enterprises will grow to a size where they can be effectively taxed. Hence, the tax system needs to be able to accommodate the constant flow of tax payers who are entering at its lowest level, while providing high quality service to its modern sector clients. This book attempts to outline the issues associate with each of the main tax systems in LDCS and makes recommendation for implementation. Published as: Reengineering Tax Systems in Low Income Countries: An Application to Nepal, (with Rup Khadka) Kluwer Law Publishers, The Hague, The Netherlands, (distributed in USA and Canada from Cambridge, MA), 2002 JEL Code(s): Keywords: Tax Reform, income tax, sales tax, property tax Nepal Download: qed_dp_144.pdf Close » "ARNOLD HARBERGER´S CONTRIBUTIONS TO PUBLIC POLICY" GLENN P. JENKINS Development Discussion Paper Number: 2002-1 More » ARNOLD HARBERGER´S CONTRIBUTIONS TO PUBLIC POLICY GLENN P. JENKINS Department of Economics, Queens University, Canada. Development Discussion Paper: 2002-1 Abstract: It is with great pleasure that I review some of the contributions to the field of public policy that Arnold Harberger has made in his distinguished career. Arnold is a teacher, researcher, policy economist, and missionary for the adoption of good policies in countries around the globe. His enormous influence on public policy has come about because of the last four factors. First, his considerable intellectual energy has stayed focused on issues that are rooted in the real world. Second, the intellectual leadership and mentoring that he as provided to hundreds of graduate students both at the University of Chicago and UCLA have created a crops of policy economists who are prepared , with enthusiasm, to apply Harberger´s fundamentals-based , real-world-oriented training to the economic problems facing many countries. Third, the care and attention he has taken to communicate the results of his explorations of economic theory and policy analysis set him apart from much of the profession. Fourth, Harberger is the ultimate country doctor, who still makes house calls. JEL Code(s): A11 Keywords: Arnold Harberger, public policy Download: qed_dp_143.pdf Close » "Diagnostic and Proposal for the Reform of the Personal Income Tax System in the TRNC" GLENN P. JENKINS Development Discussion Paper Number: 2001-1 More » Diagnostic and Proposal for the Reform of the Personal Income Tax System in the TRNC GLENN P. JENKINS Department of Economics, Queens University, Canada. Development Discussion Paper: 2001-1 Abstract: At the present time the tax mix in the TRNC consists of an income tax at both the individual and corporate levels. The corporation income tax is partially integrated with the personal income tax system. In addition, at both the individual and the firm level there are social security contributions that are quite substantial. The focus of this paper is on the personal tax system, which in year 2000 was responsible for raising 32 percent of total taxes or 6.7 percent of GNP. There is a need for North Cyprus to follow the lead of tax reforms in countries all over the world and reduce the "theoretical" progressively of the personal income tax structure. In addition the government needs to help the tax administration build up the level of tax compliance in the country. Previously Published: "Diagnostic and Proposal for the Reform of the Personal Income Tax System in the TRNC", in Review of Social, Economic and Business Studies, Vol. 1,No. 1,Eastern Mediterranean University Press, Gazimagusa, Turkish Republic of North Cyprus, Fall 2001-2002. JEL Code(s): H24 Keywords: Income tax, Personal income tax, corporation income tax, tax reform, tax evasion, Turkish Republic of North Cyprus Download: qed_dp_156.pdf Close » "Water Flow Risks and Stakeholder Impacts on the Choice of a Dam Site" HASAN ALI BICAK, GLENN P. JENKINS, ALI OZDEMIRAG Development Discussion Paper Number: 2000-11 More » Water Flow Risks and Stakeholder Impacts on the Choice of a Dam Site HASAN ALI BICAK Eastern Mediterranean University GLENN P. JENKINS HIID Harvard University ALI OZDEMIRAG University of Leicester, UK Development Discussion Paper: 2000-11 Abstract: This study evaluates three alternative locations for building a fresh water dam in the Yesilirmak Valley of North Cyprus. Each of the three sites has different investment costs, water storage capabilities and socio-political repercussions. These kinds of tradeoffs have in recent years characterized much of the worldwide debate surrounding the construction of electricity and irrigation dams. Another issue raised in the paper is the appreciate treatment of the risk and variability associated with the availability of water to fill the dam through time. This paper demonstrates how an integrated financial-economic-stakeholder analysis can provide the inputs needed by decision makers in such a situation to make political and economic choices. Published as: "Water Flow Risks and Stakeholder Impacts on the Choice of a Dam Site " The Australian Journal of Agricultural and Resource Economics, Vol. 46, pp. 257-277 JEL Code(s): H43, H54, Q25 Keywords: North Cyprus, potable water, dam, resettlement, breakeven price, stakeholder impacts Download: qed_dp_193.pdf Close » "Evaluation of Stakeholder Impacts in Project Appraisal, The Jamuna Bridge" GLENN P. JENKINS Development Discussion Paper Number: 2000-10 More » Evaluation of Stakeholder Impacts in Project Appraisal, The Jamuna Bridge GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. Development Discussion Paper: 2000-10 Abstract: The social analysis of a project may be organized in to two parts: estimating how the income changes caused by the project are distributed across the stakeholder of the project, and identifying the impact of the project on the principal objectives (basic needs) of society. Another aspect of the social analysis is concerned with situations where the project will facilitate or hinder the process of helping society address its basic needs. The analysis is important to decision makers as it lets them evaluate the impact of particular policies or projects on segments of society, and to predict which groups will be net beneficiaries and which groups will be net loser. This paper starts with explaining the distributive analysis and describes how to determine the impact of project on different parts of society and its effect to alleviate poverty. The application carried out in this paper is to allocate the cost and benefits of building a bridge over the Jamuna River as purposed by Government Bangladesh. Prepared for:<.b> Transportation and Poverty Seminar, The World Bank Transportation Division, Washington D.C. June 2000. JEL Code(s): H43 Keywords: investment appraisal, stakeholder analysis, allocation of benefits and costs, poverty alleviation Download: qed_dp_190.pdf Close » "Central Local Fiscal Relations in Low Income Countries, the Case of Nepal" GLENN P. JENKINS, ROY KELLY, RUP KHADKA Development Discussion Paper Number: 2000-9 More » Central Local Fiscal Relations in Low Income Countries, the Case of Nepal GLENN P. JENKINS HIID Harvard University ROY KELLY HIID Harvard University RUP KHADKA HIID Harvard University Development Discussion Paper: 2000-9 Abstract: Maintaining the proper equilibrium between centralized and localized fiscal management is a dilemma facing the low-income developing countries today. More decentralization is desirable in order to supply the right mix of public services that are needed by the diverse regions. At the same time, the very great difference in the level of development growth rates of the major urban areas compared with the countryside require very different levels of resource mobilization. In the poorest developing countries, the central government that has the capability of generating the resources needed by the expanding urban areas and in turn is the only level of government that has the capability of planning for the delivery of services in the rural areas. In Nepal, the Local Self-Governance Act of 1999 has expanded both the function and revenue authority of the local government. It will not be easy to translate theory into practice. Decentralization will require strong political will, and an improvement in administration and support from the central government (particularly in the case of rural local government).if it is to succeed. Prepared for: Harvard Institute for International Development JEL Code(s): H30 Keywords: Nepal, fiscal decentralization, local taxation, revenue allocation, tax, fiscal management. Download: qed_dp_189.pdf Close » "Estimation of Tax Revenue and Tax Capacity" CHUN-YAN KUO Development Discussion Paper Number: 2000-8 More » Estimation of Tax Revenue and Tax Capacity CHUN-YAN KUO Deloitte Touche Tohmatsu Washington, D.C. Development Discussion Paper: 2000-8 Abstract: The paper describes the general approach to project various tax revenues in future years under the current tax law and proposed changes in the law. It also presents a short term monthly model for monitoring tax revenues. The model is applied to the case of China. Prepared for: People´s Republic of China, July 2000 JEL Code(s): H24 Keywords: tax capacity, revenue forecasting, VAT, tax receipts, input-output tables, China Download: qed_dp_182.pdf Close » "Tax Revenue Estimation in Ghana" ROSHAN BAJRACHAVA, CHUN-YAN KUO Development Discussion Paper Number: 2000-7 More » Tax Revenue Estimation in Ghana ROSHAN BAJRACHAVA International Institute for Advanced Studies, Inc., USA CHUN-YAN KUO International Institute for Advanced Studies, Inc., USA Development Discussion Paper: 2000-7 Abstract: This paper is to evaluate the current methodologies for revenue forecasting of all revenue agencies, the Ministry of Finance and elsewhere and to make recommendations for the modification of the existing methods and to propose alternative approaches in Ghana. The paper also describes a simulation model for an export tax on cocoa that enables us to analyze revenue implications of the various scenarios. Prepared for: Government of Ghana, February 2000 JEL Code(s): H24, H25 Keywords: import duties, VAT, export tax, PAYE, simulation model, Ghana Download: qed_dp_181.pdf Close » "On Sustainable Development of an Agricultural Economy: The Case of Guyana " CHUN-YAN KUO, GANGADHAR P. SHUKLA Development Discussion Paper Number: 2000-6 More » On Sustainable Development of an Agricultural Economy: The Case of Guyana CHUN-YAN KUO Harvard Institute for International Development, Harvard University GANGADHAR P. SHUKLA Harvard Institute for International Development, Harvard University Development Discussion Paper: 2000-6 Abstract: This paper develops the new market-oriented economic policies for sustainable development of underdeveloped countries, which have been poor and reply on external assistance for decades. The case applies to Guyana because of its chronic deficit and deteriorated facilities in hydraulic systems. To be effective, the paper emphasizes the benefit principle of taxation and the importance of an appropriate agency to assess and collect drainage and irrigation dues. Published at: Harvard University Development Discussion Paper No. 765, June 2000 JEL Code(s): H41, H42, O13, Q15 Keywords: drainage and irrigation, taxation, affordability, institutional arrangement, Guyana Download: qed_dp_176.pdf Close » "Tax Analysis and Revenue Forecasting" GLENN P. JENKINS, CHUN-YAN KUO, GANGADHAR P. SHUKLA Development Discussion Paper Number: 2000-5 More » Tax Analysis and Revenue Forecasting GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. CHUN-YAN KUO Queen´s University, Canada. GANGADHAR P. SHUKLA Development Associate at the Harvard Institute for International Development, Harvard University Development Discussion Paper: 2000-5 Abstract: Tax analysis and forecasting of revenues are of critical importance to governments in ensuring stability in tax and expenditure policies. To augment timely and effective analysis of the revenue aspects of the fiscal policy, governments have increasingly turned toward in-house tax policy units rather than relying on tax experts from outside their countries. These tax policy units have been increasingly called upon to analyze the impact of tax policies on the economy and to estimate the revenue implications of tax measures, with the ultimate objective of ensuring a healthy fiscal situation within the economy. Tax policy units also help ensure that tax systems are efficient, fair, and simple to understand and comply with. Such systems help to create an economic environment that is conducive to greater social justice. This manual provides a basic set of guidelines in both theory and practice to carry out this analysis. Prepared for: International Tax Program, Harvard University. JEL Code(s): H20, H21, H24, H25 Keywords: revenue forecasting, tax analysis, tax modeling, revenue collection, tax expenditure analysis Download: qed_dp_169.pdf Close » "MODERNIZATION OF TAX ADMINISTRATION IN LOW INCOME COUNTRIES: THE CASE OF NEPAL" GLENN P. JENKINS, RUP KHADKA Development Discussion Paper Number: 2000-4 More » MODERNIZATION OF TAX ADMINISTRATION IN LOW INCOME COUNTRIES: THE CASE OF NEPAL GLENN P. JENKINS Department of Economics, Queens University, Canada. RUP KHADKA HIID, Harvard University. Development Discussion Paper: 2000-4 Abstract: Tax administrations in many low-income countries are weak, corrupt, and nontransparent. This inefficiency reflects both the mix of taxes and the faulty design in their structure and in their operational systems. The tax administration is also affected by policies relating to the salary, the attitude, and the reward and punishment system of personnel. The tax administration in low-income countries is driven by detailed revenue targets and not by the tax laws and accounting records. The tax officials are allowed both to earn money ad still meet their revenue targets. Many things are done through negotiation rather than on the basis of information processing. Since the organized business sector provides the bulk of the tax revenue, it is the sector that is hindered by such a system. The development of the modern business sector and globalization of business activities have generated pressure for tax administration reform. JEL Code(s): Keywords: Nepal, Tax-administration, modernization Download: qed_dp_142.pdf Close » "PROMOTING EXPORT-ORIENTED FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES: TAX AND CUSTOMS ISSUES" GLENN P. JENKINS, CHUN-YAN KUO Development Discussion Paper Number: 2000-3 More » PROMOTING EXPORT-ORIENTED FOREIGN DIRECT INVESTMENT IN DEVELOPING COUNTRIES: TAX AND CUSTOMS ISSUES GLENN P. JENKINS Department of Economics, Queens University, Canada. CHUN-YAN KUO Queen´s University. Development Discussion Paper: 2000-3 Abstract: There has been a growing emphasis in many developing countries to adopt an exported growth policy that attempts to attract both domestic and foreign investment into activities that will increase exports. Many countries, however, have not achieved the desired response. Among other problems, investors often face foreign exchange controls tariffs on imported inputs, and a costly system for the exemption or refund of sales taxes on inputs used to produce exports. These factors have frequently impeded the inflow of foreign investment and prevented the expansion of export production and sales. This paper addresses two issues related to the design and administration of some of the fiscal provisions that affect the competitiveness of a country in the production of non-rational exports. JEL Code(s): Keywords: Download: qed_dp_141.pdf Close » "PUBLIC SECTOR INTERVENTION IN THE ENERGY SECTOR" ELLEN SEIDENSTICKER, GLENN P. JENKINS Development Discussion Paper Number: 2000-2 More » PUBLIC SECTOR INTERVENTION IN THE ENERGY SECTOR ELLEN SEIDENSTICKER Senior Analyst, Cambridge Resources International Inc. GLENN P. JENKINS Department of Economics, Queens University, Canada. Development Discussion Paper: 2000-2 Abstract: Access to modern energy is a central feature of economic and social development. Almost all developing countries need to expand and improve the efficiency of their energy infrastructure. It is difficult to imagine the conditions that would allow the eradication of poverty without adequate and reliable energy supply from electricity and fossil fuels. What role the state should play in this effort is the central concern of this paper. With an understanding of the role of the state, international institutions will be better able to create programs that can assist governments seeking to provide for adequate energy development. We focus primarily on electric power because it is at the center of the policy debate about energy today. Issued as: "Rational for Public Sector Intervention in the Energy Sector" (with Ellen Seidensticker), World Bank Energy Division, World Bank, Washington, January 2001. JEL Code(s): Q48 Keywords: Energy, Electricity, Public Intervention Download: qed_dp_140.pdf Close » "ELECTRICITY DEMAND AND ELECTRICITY VALUE" GLENN P. JENKINS, HENRY B. F. LIM Development Discussion Paper Number: 2000-1 More » ELECTRICITY DEMAND AND ELECTRICITY VALUE GLENN P. JENKINS HIID, Harvard University. HENRY B. F. LIM ITP, Harvard University. Development Discussion Paper: 2000-1 Abstract: The estimation of the demand for electricity is important in the appraisal of power projects because it often affects the benefits of the projects. For projects that involve a decision about the timing of investment- when to install new capacity to meet the demand- the precision of the electricity demand forecast can be critical. For others, when electric tariff policy is involved, it is essential to relate the demand for electricity with tariffs through the use of an electricity demand model or demand elasticizes. In this paper, we discuss a commonly used demand model for electricity and demonstrate its use in our analysis. Issued as: Development Discussion Paper No. 275, Harvard Institute for International Development, August 1999, Harvard University. JEL Code(s): Q41 Keywords: electricity, demand, electric tariff policy Download: qed_dp_139.pdf Close » "Evaluation of Stakeholder Impacts in Cost-Benefit Analysis" GLENN P. JENKINS Development Discussion Paper Number: 1999-10 More » Evaluation of Stakeholder Impacts in Cost-Benefit Analysis GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. Development Discussion Paper: 1999-10 Abstract: The scope of the analyses of public and private investment projects is expanded beyond the traditional criteria of financial and economic net present value. If the economic and financial analyses are carried out using a common numeraire, they can include issues of stakeholder impacts, poverty impact, and an assessment of the long-term sustainability of the project. We can assess the income impacts on different interest groups. This forces the analyst to do reconciliation between the economic performance, the financial performance and the distributional impacts of project. Three examples are given of projects in Cyprus, Bangladesh and the Philippines: traditional economic and financial analyses would not have identified many of the most important aspects of the process that determined whether or not the projects would be implemented and sustainable. Presented at: Impact Assessment and Project Appraisal, Volume 17, number 2, June 1999, pages 87-96, Beech Tree Publishing, 10 Watford Close, Guildford, Surrey GU1 2EP, UK. JEL Code(s): H43 Keywords: stakeholder impact, cost-benefit analysis, investment appraisal. Download: qed_dp_160.pdf Close » "The San Jose Del Monte Water Supply Expansion Project" GLENN P. JENKINS, BAHER EL-HIFNAWI Development Discussion Paper Number: 1999-9 More » The San Jose Del Monte Water Supply Expansion Project GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. BAHER EL-HIFNAWI Cambridge Resources International Inc. Development Discussion Paper: 1999-9 Abstract: This project is an expansion of the existing water supply system in San Jose Del Monte and is being proposed for funding by the Local Water Utilities Administration (LWUA), a government-owned quasi-corporate entity that provides institutional and financial support to the municipal water districts in the country. The project aims to increase the district’s system operational storage in order to meet its projected storage requirements up to the year 2005. The additional capacity will serve selected zones of the district’s entire service coverage. The evaluation approach for the project assumes that it is an incremental investment and that all sources of revenue and economic benefits are also incremental to the existing operations of the San Jose del Monte Water District. In evaluation of this project, an integrated financial, economic and stakeholder analysis is undertaken. Prepared for: National Economic Development Authority, Government of the Philippines. JEL Code(s): H43 Keywords: Philippines, investment appraisal, financial analysis, water supply, economic analysis, stakeholder analysis, incremental investment. Download: qed_dp_162.pdf  Excel file Close » "AN INTEGRATED ANALYSIS OF A POWER PURCHASE AGREEMENT" GLENN P. JENKINS, HENRY B. F. LIM Development Discussion Paper Number: 1999-8 More » AN INTEGRATED ANALYSIS OF A POWER PURCHASE AGREEMENT GLENN P. JENKINS HIID, Harvard University. HENRY B. F. LIM ITP, Harvard University. Development Discussion Paper: 1999-8 Abstract: A Power Purchase Agreement (PPA) is at the heart of any BOT or BOO type power generation project that is to be undertaken by an Independent Power Producer (IPP). During the past decade privately owned IPPs selling electricity to the power industry has become common place. Such arrangements require some version of a PPA. In this paper we model a multi-currency loan and equity financing package for a 100 MW combined-cycle gas turbine generation plant that is to be built in India. Using this financial model we evaluate a sophisticated power purchase agreement in order to identify the relative importance of each of the variables found in such an agreement. Variables become important if they represent major elements of costs or revenues or are significant sources of risk. This paper provides an example of the benefits that an integrated financial-economic-stakeholder analysis can bring to the evaluation of a PPA and BOT contracts. The integrated approach allows various scenarios to be compared from different perspectives and points of view. The economic analysis looks at the project's impact on a country's overall economy. The financial analysis of such an infrastructure project checks on the profitability and sustainability of the project over time. Sensitivity and risk analyses are central to the evaluation of this project since they identify the most critical variables and allow a probability distribution of values to be used in the model, rather than a single predicted value. The distributive or stakeholder analysis identifies who would be the major winners and losers if the power plant project were undertaken. This approach enables the partners to the agreement to “testâ€Â� the sustainability of the contract through the analysis of the project's outcomes under a wide range of situations and combinations of scenarios before the PPA is entered into. The technique of testing contracts for their future sustainability is area of research of potentially great benefit to the parties entering into long term contractual arrangements for public services. JEL Code(s): D61, H43, L94 Keywords: India, electricity, agreement, foreign investment, privatization, appraisal Download: qed_dp_138.pdf  Excel file Close » "COSTS AND PRICING POLICIES RELATED TO TRANSPORTING WATER BY TANKER FROM TURKEY TO NORTH CYPRUS" HASAN ALI BICAK, GLENN P. JENKINS Development Discussion Paper Number: 1999-7 More » COSTS AND PRICING POLICIES RELATED TO TRANSPORTING WATER BY TANKER FROM TURKEY TO NORTH CYPRUS HASAN ALI BICAK Eastern Mediterranean University. GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1999-7 Abstract: This paper reports on an evaluation we have carried out on the financial feasibility of importing water by tanker from Manavgat (Turkey) to Kumkoy (North Cyprus). The break-even real price of water (1998 prices) reflecting the cost per cubic meter (m3) will be calculated at various stages of the delivery process. The cost of water to the shore of North Cyprus reflects only the transportation cost, while the cost to Kumkoy reservoir will include the cost of infrastructure to be built in North Cyprus. The cost of water to households will take into account the high rate of leakage in the distribution systems. In determining the effects of various financial arrangements on the cost of water, the model considers the financial cost of maintaining various length of billing cycles and payment terms for the water. It also includes an examination of the financial repercussions if there are only periodic adjustments made to the nominal price of water for inflation. In a very high inflationary environment like North Cyprus, such items not only affect the financial outcome of the project, but also require the authorities to consider a number of alternative pricing policy schemes. Previously Published: Access to water in the Eastern Mediterranean, D. Brooks and O. Mehmet eds, IDRC Books, Ottawa, 1999 JEL Code(s): D61, H43, L95 Keywords: North Cyprus, water tankers, water transportation, water pricing Download: qed_dp_137.pdf Close » "EVALUATION OF AN EXPANSION OF THE ELECTRICITY TRANSMISSION SYSTEM IN MEXICO" HENRY B. F. LIM, GANGADHAR P. SHUKLA, GLENN P. JENKINS Development Discussion Paper Number: 1999-5 More » EVALUATION OF AN EXPANSION OF THE ELECTRICITY TRANSMISSION SYSTEM IN MEXICO HENRY B. F. LIM ITP, Harvard University. GANGADHAR P. SHUKLA HIID, Harvard University. GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1999-5 Abstract: In the past, most evaluations of the electric utility investments have been based on the assumptions that the suppliers of electricity would provide the quantity of energy demanded at an acceptable level of reliability. The question addressed in most of the investment appraisals has been: "is this investment the least cost way to supply the electricity demanded?" In real life the situation is usually very different in most developing countries. Shortages, outages and deterred demand have been the rule, rather than the exception. Often the existing generation, transmission and distribution system are far from being the least cost method of supplying power. As a consequence, major investments are required to improve the existing capacity of electricity systems as well as to provide some expansion. In such a situation both the financial and economic analyses become more challenging. We need to isolate both benefits and costs of incremental investments that are part of an overall integrated system, where existing assets rather than new assets dominate the system´s operations. This study of a major rehabilitation program by Commission Federal de Electricidad (CFE) of Mexico (Mexico Public Electric Utility) presents a practical method of analysis for this type of projects along several fronts. Such an integrated analysis is much more than a set of procedures for estimating the expected net present values or rates of return of the project. An investment appraisal carried out in this fashion becomes an analytical tool for redesigning the project in ways that increase the likelihood of its sustainability and the probability of achieving its objectives. Issued as: "Evaluation of Investments for the Expansion of an Electricity Transmission System," with Henry B.F. Lim and Gangadhar P. Shukla, Harvard Institute for International Development, DDP 688, March 1999. JEL Code(s): D61, H43, L95 Keywords: Mexico, electricity, rehabilitation, investment, generation, electricity, transmission, cost-benefit analysis Download: qed_dp_135.pdf Close » "CONTROL OF WATER AND COASTAL POLLUTION AN APPRAISAL FOR ESPIRITO,BRAZIL" MIGARA S. JAYAWARDENA, GLENN P. JENKINS, GANGADHAR P. SHUKLA Development Discussion Paper Number: 1999-4 More » CONTROL OF WATER AND COASTAL POLLUTION AN APPRAISAL FOR ESPIRITO,BRAZIL MIGARA S. JAYAWARDENA HIID, Harvard University. GLENN P. JENKINS HIID, Harvard University. GANGADHAR P. SHUKLA HIID, Harvard University. Development Discussion Paper: 1999-4 Abstract: A shortage of clean drinking water, the lack of an adequate sewage system, and rapid environmental degradation from waste dumping have prompted the State of Espirito Santo in Brazil to consider expanding the water supply and sewage disposal systems in the region. This paper reports on the findings of a study to appraise the viability of a project to alleviate some of the shortfall in potable water and sewage services in the state. Recommendations are developed for improved investment and operational strategies through an integrated analysis of the financial, economic, distributive and risk aspects of the project. Results of the study indicate that even though the project, in its current state, is not likely to be financially profitable, it is expected to create significant economic gains for society through the reduction in environmental pollution. Furthermore, improvements in operation and management practices that address the issues of water leakage, invoicing and collections are key to improving the financial viability, and perhaps ultimately, the economic viability of the system. A particular challenge provided by the study has been the measurement of intangible environmental benefits and their inclusion in the project´s analysis of discounted net economic benefits. Without the measure of these benefits the overall economic value produced by this project would be seriously understated. Previously Published: "Control of Water and Coastal Pollution: An Appraisal for Espirito Santos Brazil," (With Migara Jayawardena and GP Shukla), DDP 682, Harvard Institute for International Development, March 1999. JEL Code(s): D61, H43, L95 Keywords: Brazil, integrated investment appraisal, willingness to pay, water supply, contingent valuation Download: qed_dp_134.pdf  Excel file Close » "AN ANALYSIS OF ELECTRICITY GENERATION AND TARIFF OPTIONS IN GHANA" GLENN P. JENKINS, MARIA MARCHESINI Development Discussion Paper Number: 1999-3 More » AN ANALYSIS OF ELECTRICITY GENERATION AND TARIFF OPTIONS IN GHANA GLENN P. JENKINS HIID, Harvard University. MARIA MARCHESINI HIID, Harvard University. Development Discussion Paper: 1999-3 Abstract: For most electric utility in developing countries the choice of generation technology, the type of financing that is available, the type of ownership of the facility, and electricity tariff policies are not independent variables. This paper reports on an integrated financial, economic and stakeholder analysis of a prospective investment in the Bui hydroelectric generation dam in Ghana. The appraisal of the Bui dam serves as the vehicle to illustrate how the choice of technology, choice of public utility versus independent power producer and available financing packages are linked and what may be their implication for domestic electricity pricing policy. In this case, the Bui dam is both financially and economically better than the alternative compared here, even if favorable financing terms are not available to this project. At the same time, the risks of cost overruns, water availability and construction delays are risks that are likely to be more prevalent with the development of a hydro dam than in the case of the thermal alternative. Issued as: "An Analysis of Electricity Generation and Tariff Opinion in Ghana," (With Mario Marchesini), DDP 702, Harvard Institute for International Development, May 1999. JEL Code(s): D61, H43, L94 Keywords: Ghana, electricity, tariff regulation, system planning, investment, privatization Download: qed_dp_133.pdf  Excel file Close » "RESOURCES COST,RESETTLEMENT COST,AND POLITICAL RESTRAINTS IN THE CHOICE OF DAM LOCATIONS" HASAN ALI BICAK, GLENN P. JENKINS, ALI OZDEMIRAG Development Discussion Paper Number: 1999-2 More » RESOURCES COST,RESETTLEMENT COST,AND POLITICAL RESTRAINTS IN THE CHOICE OF DAM LOCATIONS HASAN ALI BICAK Eastern Mediterranean University. GLENN P. JENKINS HIID, Harvard University. ALI OZDEMIRAG HIID, Harvard University. Development Discussion Paper: 1999-2 Abstract: This study evaluates three alternatives locations for building a fresh water dam in the Yesilirmak valley of North Cyprus. Each of the three sites has different investment costs, storage capacities, and socio-political repercussions. An integrated financial-economic and stakeholder analysis is conducted in order to evaluate the trade-offs between these three potential dam locations. The opportunity cost of the fertile land that would be covered by the third location is compared with the economic rents associated with the additional water which would be provided by a dam at this location. The economic cost of not being able to build at the first site because of international political constrains is also estimated. These kinds of trade-offs have in recent years characterized much of the world-wide debate surrounding the construction of electricity and irrigation dams. This paper demonstrates how an integrated analysis can provide the inputs needed by decision-maker rational political and economic choices in such situations. Issued as: "Resources Cost, Resettlement Costs, and Political Constrains in the choice of Dam Locations" (with Hasan Ali Bicak, and Ali Ozdemirag) DDP 750, Harvard Institute for International Development, January 2000. JEL Code(s): H43, H54, Q25 Keywords: North Cyprus, potable water, dam, resettlement, breakeven price, stakeholder impacts Download: qed_dp_132.pdf  Excel file Close » "ECONOMIC COST OF FOREIGN FINANCING" GLENN P. JENKINS Development Discussion Paper Number: 1999-1 More » ECONOMIC COST OF FOREIGN FINANCING GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1999-1 Abstract: The conventional treatment by the economic appraisal of investments has been to disregard the particular terms of foreign financing as a benefit or cost. This approach is being called into question as the private provision of public services has become dominated by foreign investors and operators. Many of the BOT and BOO contracts are far from being transparent capital market transaction. This paper contains a methodology for introducing the measurement of extra costs or benefits attributable to the project because of prepared financing arrangements. JEL Code(s): D61, H43 Keywords: project appraisal, project financing, foreign investment, economic costs and benefits Download: qed_dp_131.pdf Close » "Buenos Aires - Colonia Bridge Project, Financial and Economic Appraisal " CHUN-YAN KUO, GLENN P. JENKINS Development Discussion Paper Number: 1998-7 More » Buenos Aires - Colonia Bridge Project, Financial and Economic Appraisal CHUN-YAN KUO International Tax Program, Harvard University GLENN P. JENKINS HIID Harvard University Development Discussion Paper: 1998-7 Abstract: The Buenos Aires – Colonia Bridge Project is designed to provide a permanent and non-managed river crossing under all weather conditions between Punta Lara, located approximately 40 km away from Buenos Aires, the Argentine capital, and Colonia, a city in Uruguay. It is planned to involve a private concessionaire for design, construction, operation and maintenance, and the governments of Argentina and Uruguay in supportive roles. The main objectives of this paper are to assess the project from the viewpoint of the concessionaire by the financial appraisal and the governments of Argentina and Uruguay through the economic and stakeholder appraisals. To evaluate the financial viability from the private point of view, we integrate the engineering cost estimates, the traffic forecasting and financing information into a cash flow statement over the life of the project. Therefore, the financial appraisal draws the estimates of construction and operating costs and sources of supply. The economic appraisal evaluates the project from the viewpoint of the Argentine and Uruguayan economy, respectively. It starts with the financial appraisal of costs and revenues and develops a series of adjustments for the most important externalities to reflect the economic costs and benefits to each of the two countries. After applying scenario techniques to assess this investment project, we undertake sensitivity and risk analyses of the financial and economic performance of the bridge project. The important project variables and outcomes of sensitivity and risk analyses are identified and analyzed. Prepared for: Comision Binacional Puente Buenos Aires Colonia JEL Code(s): H43 Keywords: Argentina, Uruguay, financial viability, traffic forecasting, economic appraisal, financial appraisal. Download: qed_dp_188.pdf Close » "Economic Consequences of Statehood for Puerto Rico: A General Equilibrium Analysis" GLENN P. JENKINS, NAZRUL ISLAM Development Discussion Paper Number: 1998-6 More » Economic Consequences of Statehood for Puerto Rico: A General Equilibrium Analysis GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. NAZRUL ISLAM Department of Economics, Emory University Development Discussion Paper: 1998-6 Abstract: It has been quite some time that Puerto Ricans have been debating the status issue. Put simply, it is the issue of appropriate political arrangement between the island and the mainland USA. There are basically three status options to consider, namely (a) statehood, (b) commonwealth, and (c) independence. The question of right political status is indeed a difficult and complicated question. It has many facets: political, economic, cultural, etc. It is therefore no wonder that, despite several referendums, no broad agreement on the status issue has yet emerged. Among different dimensions of the status question, the one that is of foremost importance is economic. It is also possible to be more objective with regard to the economic aspect than with regard to other aspects. Hence, if agreement is possible with regard to any particular aspect of the status issue, it should be regarding the economic aspect. Agreement on the economic aspect may also lead to agreement on other aspects of the status debate. This provides the motivation for this paper. It hopes to contribute to a better understanding of the economic consequences of statehood for Puerto Rico. In this paper, we carry the study of economic consequences of statehood for the Puerto Rican economy one step forward. In order to do so, we construct a computable general equilibrium (CGE) model for the Puerto Rican economy and use this model to study the question. Our broad conclusion is that the results presented by CBO were bleaker than truly warranted. Prepared for: the Citizens Educational Foundation JEL Code(s): D58 Keywords: Puerto Rico, general equilibrium, statehood Download: qed_dp_171.pdf Close » "Andean Highway Pass Program, Financial and Economic Appraisal " GLENN P. JENKINS, CHUN-YAN KUO Development Discussion Paper Number: 1998-5 More » Andean Highway Pass Program, Financial and Economic Appraisal GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. CHUN-YAN KUO Queen´s University, Canada. Development Discussion Paper: 1998-5 Abstract: The Andean High Pass Program is evaluated as a pure public sector infrastructure investment. Since each pass crosses the territory of Argentina to Chile, it is a bi-national investment. This infrastructural investment affects not only the economies of Argentina and Chile, but also those of other countries, especially countries located in the lower half of South America. Since the Program is a public sector investment, the focus of the analysis is on the economic evaluation. The analysis is organized around the two major stakeholders in the project: Argentinean residents and Chilean residents. Each pass is constructed jointly by the Argentinean and Chilean governments, but the economic costs and benefits in this study are estimated separately for Argentina, Chile and the rest of the world. Report prepared for: Inter-American Development Bank JEL Code(s): H43, H54 Keywords: Argentina, Chile, Andean Passes, traffic forecast, transportation. Download: qed_dp_167.pdf Close » "ESTIMATION OF THE NATIONAL PARAMETERS FOR ECONOMIC COST-BENEFIT ANALYSIS FOR THE PHILIPPINES" GLENN P. JENKINS, CHUN-YAN KUO Development Discussion Paper Number: 1998-4 More » ESTIMATION OF THE NATIONAL PARAMETERS FOR ECONOMIC COST-BENEFIT ANALYSIS FOR THE PHILIPPINES GLENN P. JENKINS HIID, Harvard University. CHUN-YAN KUO ITP, Harvard University. Development Discussion Paper: 1998-4 Abstract: In this paper, an analytical framework is developed to measure the economic opportunity cost of capital and foreign exchange. An application of the framework is carried out for the Philippines. The results indicate that the economic cost of capital is approximately10% real for the Philippines. The economic cost of foreign exchange is about 15% greater than the market exchange rate. These rational parameters are the essential determinant for practical application to the economic appraisal of investments in the Philippines. Issued as: "Estimation of the National Parameters for Economic Cost-Benefit Analysis for the Philippines," w/Chun-Yan Kuo, Harvard Institute for International Development, DDP 653, Harvard University, September, 1998 JEL Code(s): H43 Keywords: Philippines, capital, foreign exchange costs, appraisal of investments Download: qed_dp_130.pdf Close » "TAX REFORM IN SINGAPORE" GLENN P. JENKINS, RUP KHADKA Development Discussion Paper Number: 1998-3 More » TAX REFORM IN SINGAPORE GLENN P. JENKINS HIID, Harvard University. RUP KHADKA HIID, Harvard University. Development Discussion Paper: 1998-3 Abstract: Globalization has forced many governments to change their economic policies, including tax policies, in the recent years. It has had an even greater impact on Singapore´s economy due to the high degree of its openness with respect to trade and investment. In this context, Singapore undertook a major restructuring of its tax system in the early 1990s. The introduction of a modern value added tax system (goods and services tax) was a part of the overall tax reform package. This paper examines how Singapore has modified its tax system to be consistent with the changes in the Singaporean economy over time and is to put itself in step with current trends in taxation. It also analyzes in detail the principal measures that the Singapore government and its tax administration took to ensure a smooth implementation of the new goods and services tax. Issued as: "Tax Reform in Singapore," with Rup Khadka, DDP #644, Harvard Institute for International Development, Harvard University, July 1998. JEL Code(s): H20 Keywords: Singapore, tax reform, value added tax system Download: qed_dp_129.pdf Close » "VALUE ADDED TAX POLICY AND IMPLEMENTATION IN SINGAPORE" GLENN P. JENKINS, RUP KHADKA Development Discussion Paper Number: 1998-2 More » VALUE ADDED TAX POLICY AND IMPLEMENTATION IN SINGAPORE GLENN P. JENKINS HIID, Harvard University. RUP KHADKA HIID, Harvard University. Development Discussion Paper: 1998-2 Abstract: The Value Added Tax (VAT) was introduced in Singapore in 1994 as a major part of an overall tax reform package and with a strong political commitment to its implementation. As the Singaporean economy has many special features that make it difficult for a generic VAT to function well, such as a very high ratio of imports and exports to GDP and relatively large financial sector, a number of modifications were made in its design and administration to facilitate its operation. These modifications demonstrate how the basic structure of the VAT can be successfully adapted to fit the particular circumstances of a country, provided it is done with care to practical issues of compliance and administrative feasibility. The detailed preparation, openness, and high energy level of the tax authorities made it possible to implement the VAT in an exemplary manner. The case of the implementation of the GST in Singapore comes close to being a "best practices" framework to guide other governments toward a successful introduction of this important system of taxation. Published as: "Value Added Tax Policy and Implementation in Singapore", with Rup Khadka, International VAT Monitor, vol.9 (no.2), pp. 35-47, IBFD Publications, Amsterdam, The Netherlands, March/April 1998. JEL Code(s): H20 Keywords: Singapore, value added tax, exemplary implementation Download: qed_dp_128.pdf Close » "EVALUATION OF INVESTMENTS FOR THE EXPANSION OF AN ELECTRICITY DISTRIBUTION SYSTEM" GLENN P. JENKINS, HENRY B.F.LIM Development Discussion Paper Number: 1998-1 More » EVALUATION OF INVESTMENTS FOR THE EXPANSION OF AN ELECTRICITY DISTRIBUTION SYSTEM GLENN P. JENKINS HIID, Harvard University. HENRY B.F.LIM ITP, Harvard University. Development Discussion Paper: 1998-1 Abstract: While the methodology for the evaluation of electricity generation investments is well developed, little work has been done on how to segregate and compare the costs and benefits of electricity distribution facilities. Distribution projects have been usually treated as a required technical part of a power system, with their specific costs and benefits rarely evaluated. As electricity systems become unbundled through privatization and competition, this historical treatment of electricity distribution investments must change. The purpose of this study is to develop and illustrate an integrated analysis of the electricity distribution investments where the financial, economic, stakeholder and risks aspects of the investment are all carried out in a constituent fashion. A major investment program that was undertaken to upgrade the distribution system of commission Federal de Electricidad (CFE) of Mexico from 1990-1994 will be the case to which this methodology is applied. Such projects produce a benefit stream that is multidimensional, it includes increased sales of electricity to new customers, a reduction of the rate of pilferage of electricity, energy savings due to reductions in transformers´ losses and a reduction in incidence of power shortages. Each of these components represents different financial and economic values to customers as well as to the utility, hence, must be considered separately in an investment appraisal. The results from this study indicate that this particular investment program was desirable from an economic perspective and from the point of view of the utility. In addition, the stakeholder analysis indicates that the economic externalities accrue largely to the government through a large positive fiscal impact, and to the electricity consumers who will now obtain access to a reliable service that is priced substantially below the amount they would have pay for it. While the project makes some customers very much better off, those whose consumption was previously unmetered will be made worse-off. Issued as: "Evaluation of Investments for the Expansion of an Electricity Distribution System," with Henry B.F.Lim, DDP 670, Harvard Institute for International Development, December 1998. JEL Code(s): D61, H43, L94 Keywords: electric distribution, electricity investments, Mexico Download: qed_dp_127.pdf Close » "Evaluating the Social Cost of Job Creation" CHUN-YAN KUO Development Discussion Paper Number: 1997-4 More » Evaluating the Social Cost of Job Creation CHUN-YAN KUO Department of Finance, Canada Development Discussion Paper: 1997-4 Abstract: The paper discusses the principal labour market distortions and their effects on the social cost of jobs created in industrial projects. Two alternative approaches – a partial and a general equilibrium analysis - have been put forth in a systematic way to estimate the social cost of job creation. The general equilibrium analysis provides a dynamic analysis, allowing for labour migration between regions and the multiplier effects of job creation projects on the project region. The paper also presents two case studies -- a coal project in northeast British Columbia and a newsprint mill project in Quebec -- to demonstrate how economic theory can be applied to the practical evaluation of industrial projects. Published at: The Canadian Journal of Program Evaluation, May 1997. JEL Code(s): D61, H43 Keywords: multiplier effects, job creation, supply price, induced migrants, social cost, unemployment insurance benefit Download: qed_dp_174.pdf Close » "TAX REFORM in NEPAL: A Comprehensive Review" GLENN P. JENKINS Development Discussion Paper Number: 1997-3 More » TAX REFORM in NEPAL: A Comprehensive Review GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1997-3 Abstract: This study is the result of the Federation of Nepalese Chambers of Commerce and Industry´s initiative to reform the overall tax system and tax administration of Nepal. It was undertaken by the Harvard Institute for International Development in conjunction with the Ministry of Finance, His Majesty´s Government of Nepal and the Federation of Nepalese Chambers of Commerce and Industry and funded by the United Nations Development Program. It analyzes the current tax system in Nepal and develops a series of practical recommendations for the reform of all the major taxes in Nepal, excluding the sales tax/ VAT system. It aims to improve the overall tax system in Nepal in a way that reduces the unnecessary compliance costs and administrative burdens of the tax systems, while providing the government with more stable sources of revenue to finance public sector expenditures. The study includes an analysis of the current situations, recommendations for reform, their revenue implications and where appropriate, draft legislation. JEL Code(s): H20 Keywords: Nepal, Tax Reform Download: qed_dp_126.pdf Close » "ASSISTING DEVELOPMENT IN A CHANGING WORLD:TAX REFORM" GLENN P. JENKINS, ROBERT CONRAD, GRAHAM GLENDAY, ROY B. KELLY Development Discussion Paper Number: 1997-2 More » ASSISTING DEVELOPMENT IN A CHANGING WORLD:TAX REFORM GLENN P. JENKINS HIID, Harvard University. ROBERT CONRAD Duke University. GRAHAM GLENDAY HIID, Harvard University. ROY B. KELLY HIID, Harvard University. Development Discussion Paper: 1997-2 Abstract: HID has been active in the area of tax reform for the past twenty years. This work began in 1975, with a study of mineral taxation in Bolivia and has continued through projects in a wide range of countries including: Indonesia ( mining taxation, 1976-1997, comprehensive tax reform, 1981-1986, and property taxation,1988-1994); Kenya (tax modernization, 1986 to present); Malawi (tax reform, 1988-1995); Dominican republic (tax reform, 1989 to present); Nepal (tax reform, 1993-1994); and Zambia (tax reform,1992 to present). HID also has conducted short-term missions dealing with taxation issues in: Bolivia (1977, 1981, 1991, 1993, 1994); Peru (1992); Sri Lanka (1992-1994); Lesotho (1992-1995). This chapter discusses the issues and accomplishments that were made through these efforts. Published as: "Tax Reform", with Robert Conrad, Graham Lenday, and Roy B.Kelly, pp.147-174. In Assisting Development in A Changing World: The Harvard Institute for International Development, 1980-1995, edited by Dwight H. Perkins, Richard Pagett, Michael Roemer, Donald R. Snodgrass, and Joseph J.Stern. Cambridge, MA: Harvard Institute for International Development, 1997. JEL Code(s): H20 Keywords: Tax Reform, Development and Taxation, Harvard Institute for International Development Download: qed_dp_125.pdf Close » "LINKING EAST AND WEST BANGLADESH: THE JAMUNA BRIDGE PROJECT" GLENN P. JENKINS, GANGADHAR P. SHUKLA Development Discussion Paper Number: 1997-1 More » LINKING EAST AND WEST BANGLADESH: THE JAMUNA BRIDGE PROJECT GLENN P. JENKINS HIID, Harvard University. GANGADHAR P. SHUKLA HIID, Harvard University. Development Discussion Paper: 1997-1 Abstract: The Jamuna Bridge project is a case that illustrates an integrated approach to project appraisal. An integrated approach allows analysts to examine financial, economic, distributive, and risk analysis in conjunction with each other such that no single aspect is left to be examined in isolation. The economic analysis, which looks at the project´s impact on Bangladesh´s overall economy, presents a method of computing the real benefits of the bridge, including savings gained by passenger and freight traffic. The financial analysis of such an infrastructure project checks on the sustainability of the service agency (the Bridge Authority) over time. Sensitivity and risk analyses are central to the evaluation of this project because they identify the most critical variables and allow a probability distribution of values to be used in the model, rather than a single deterministic value. The distributive analysis identifies who would gain or lose if the bridge project was undertaken, which, in turn, indicates who would be likely supporters or opponents of the project. Published as: "Linking East and West Bangladesh: The Jamuna Bridge Project" (with Gangadhar P.Shulka), Canadian Journal of Program Evaluation, University of Calgary Press, Canada, Special Issue for 1997 (Vol.12), pp.121-145. JEL Code(s): H43 Keywords: project appraisal, integrated approach, Jamuna Bridge, Bangladesh Download: qed_dp_124.pdf Close » "MINDANAO POVERTY REDUCTION: INTEGRATED AGRICULTURAL DEVELOPMENT" GLENN P. JENKINS, GANGADHAR P. SHUKLA Development Discussion Paper Number: 1996-4 More » MINDANAO POVERTY REDUCTION: INTEGRATED AGRICULTURAL DEVELOPMENT GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. GANGADHAR P. SHUKLA Harvard Institute for International Development Development Discussion Paper: 1996-4 Abstract: The Bukidnon Province in Mindanao Island is a rural area with one of the highest poverty levels in the Philippines. About 60 percent of the farm families live below the poverty line. Nonetheless, Buckidnon Province offers location and climatic advantages for the development of a high-value horticultural industry. Bukidnon Resource Company Inc. (BRCI) proposes to exploit the potential of the region by setting up a plant for the production of tomato paste. This paper studies the project from various points of view (BRCI, tomato growers, the economy)and illustrates the advantages that an integrated financial-economic-distributive approach brings to project evaluation. Report prepared by: Harvard Institute for International Development JEL Code(s): H43 Keywords: Philippines, integrated investment appraisal, poverty alleviation, tomato paste production. Download: qed_dp_161.pdf Close » "INFORMATION TECHNOLOGY AND INNOVATION IN TAX ADMINISTRATION" GLENN P. JENKINS Development Discussion Paper Number: 1996-3 More » INFORMATION TECHNOLOGY AND INNOVATION IN TAX ADMINISTRATION GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1996-3 Abstract: The role which information technology should play in the tax reform process is a subject of considerable debate. Installing computers and writing software to assist the tax administration is no substitute for political will, along with sound assessment and enforcement procedures, which are the critical elements for enhancing taxpayer compliance. Without these hey ingredients in place, computerization can easily serve as a way to absorb technical assistance, and camouflage the fact that little or no fundamental progress is being made on the reform. If the essential political, legal and administrative elements for tax reform are being put in place, then modern information technology can be a powerful tool to enhance the capabilities of the reformed system. The chapters in this volume by Lasheras and Menendez-Ros (Spain), Gil-Diaz (Mexico), and Marshall (Canada) all describe tax reform programs where modern information technology systems were introduced. In the cases of Spain and Mexico, comprehensive tax reforms were implemented covering the legal and administrative aspects of all the tax systems, from income tax to customs. In Canada, the conversion of the antiquated federal manufacturing sales tax system into a comprehensive value added tax was accompanied by a complete reorganization of the tax administration and the introduction of modern information technology into the administration of indirect taxes. Published as: "Chapter 1 in Information Technology and Innovation in Tax Administration", edited by Glenn P. Jenkins, Kluwer Law International, The Hague/ London/ Boston, 1996. JEL Code(s): H83 Keywords: Tax administration, information technology, tax reform Download: qed_dp_123.pdf Close » "PORT REHABILITATION AND EXPANSION: THE MAKAR PROJECT IN THE PHILIPPINES" GLENN P. JENKINS, GANGADHAR P. SHUKLA Development Discussion Paper Number: 1996-2 More » PORT REHABILITATION AND EXPANSION: THE MAKAR PROJECT IN THE PHILIPPINES GLENN P. JENKINS HIID, Harvard University. GANGADHAR P. SHUKLA HIID, Harvard University. Development Discussion Paper: 1996-2 Abstract: In this paper we report on an evaluation of the feasibility of a port improvement project at General Santos City in the Philippines. For an analysis of this project, which is an expansion of an existing facility, the financial and economic analyses are conducted with and without the project. To identify the variables that would have an important impact on the project´s net present value and to assess the nature of the variability of the returns from this investment, a sensitivity and risk analysis is carried out. From this analysis we find that the proposed expansion plan of the port is neither financially nor economically justified. The mean and median of both financial and economic incremental net present values (NPVs) are significantly negative, showing that the financial and economic NPVs with the project are much lower than those without the project. This project turns out to be one that is sensitive to the time at which the project is started. The country will benefit if the project is postponed, but it should be postponed for a decade. Even with the expected poor financial and economic performance, the project does have major beneficiaries. The shippers of goods and livestock, and the shipowners will receive substantial benefits from the project. They will be strong and vocal proponents of this project because, while they receive most of the benefits of the project, they pay only a small share of the cost. Issued as: "Port Rehabilitation and Expansion: The Makar Project in the Philippines:, (with Pasior Lorenzo, Jr), Harvard Institute for International Development, December 1994. JEL Code(s): H43 Keywords: Port, Philippines, economics of port improvement Download: qed_dp_122.pdf Close » "THE CHOICE OF SCALE, TECHNOLOGY AND TIMING FOR ELECTRIC POWER PROJECTS" GLENN P. JENKINS, HENRY LIM Development Discussion Paper Number: 1996-1 More » THE CHOICE OF SCALE, TECHNOLOGY AND TIMING FOR ELECTRIC POWER PROJECTS GLENN P. JENKINS HIID, Harvard University. HENRY LIM ITP, Harvard Law School. Development Discussion Paper: 1996-1 Abstract: An electric utility operating to satisfy the instantaneous demand for electricity by its customers has investment and daily operation decisions are dominated by two cost items, capacity cost and fuel cost. This is not surprising for an industry whose business is employing capital to convert raw fuel into electricity for sale. For a long time, production cost minimization has occupied the central stage of utility operations. Even though this simplistic picture has been slowly eroded by the introduction of competition into the industry, the fundamental characteristics of the power generation business remain unchanged. The two techniques widely used in the daily power generation operation and investment decisions namely, economic dispatch and optimal stacking, provide a good demonstration of these characteristics. This paper seeks to illustrate how these techniques and the basic project appraisal paradigms can be merged and utilized for the selection of optimal scale and technology in the appraisal of power projects. JEL Code(s): Q42 Keywords: revenue authority reform, tax systems Download: qed_dp_121.pdf Close » "The Financial and Environmental Feasibility of the Plantation Based Pulp Industry of Indonesia" GLENN P. JENKINS, RANJIT LAMECH Development Discussion Paper Number: 1995-6 More » The Financial and Environmental Feasibility of the Plantation Based Pulp Industry of Indonesia GLENN P. JENKINS HIID Harvard University RANJIT LAMECH Kennedy School of Government, Harvard University Development Discussion Paper: 1995-6 Abstract: Paper and Paper pulp mills supported by timber plantations are emerging as one of Indonesia´s premier industrial sectors. This study focuses on the two key questions regarding the sustainability of the plantation pulp sector in Indonesia. The first question is whether the financial returns in this sector are sufficient and the risk low enough, to warrant large expenditures by the private sector in research, development, and fertilization so that wood can produce from the plantation in a sustainable manner? The second question is whether the level of profitability of integrated plantation pulp complexes is sufficient to cover the costs of the most effective pollution control technologies and production systems used in pulp industries around the world? Prepared for: Environmental Management Development in Indonesia, BAPEDAL, Ministry of Environment, Indonesia. JEL Code(s): H43 Keywords: Indonesia, wood pulp production, integrated appraisal, economic impact, environmental impact, plantation based pulp production. Download: qed_dp_191.pdf Close » "PORTABLE WATER SUPPLY EXPANSION: THE MANILA SOUTH WATER DISTRIBUTION PROJECT" GLENN P. JENKINS Development Discussion Paper Number: 1995-5 More » PORTABLE WATER SUPPLY EXPANSION: THE MANILA SOUTH WATER DISTRIBUTION PROJECT GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1995-5 Abstract: This paper evaluates a water distribution project using an integrated financial- economic-distributive approach. The economic analysis evaluates the true value of the project´s outputs and inputs, adjusting the financial values for any distortions such as taxes, subsidies, or foreign exchange premium, which cause financial prices to differ from true resource values. The results of the economic analysis indicate that the project, with a positive economic NPV of 2,878 million pesos, could make a very positive economic contribution to the Philippines. Furthermore, since the appraisal did not include the economic value of preventing groundwater salinization in the region, nor any additional value to society (beyond that represented by the consumer´s willingness to pay) of health improvements among the region´s residents, the economic NPV generated by the analysis is actually conservative, understanding the project´s value to the country. Study completed for Economics Department, Asian Development Bank, Manilla 1995. JEL Code(s): H43 Keywords: Philippines, water project, economic evaluation Download: qed_dp_120.pdf Close » "PUERTO RICO AND SECTION 936: A COSTLY DEPENDENCE" J. THOMAS HEXNER, GLENN P. JENKINS Development Discussion Paper Number: 1995-4 More » PUERTO RICO AND SECTION 936: A COSTLY DEPENDENCE J. THOMAS HEXNER International Institute for Advanced Studies. GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1995-4 Abstract: For over 70 years, U.S corporations have been granted tax incentives to operate in U.S territorial possessions, most notably in Puerto Rico. The purpose in so benefiting what have become known as "possessions corporations" is to attract U.S. capital to these developing territories, with the goal of creating jobs. In summary, section 936 has ceased to be an efficient means of attaining employment and attracting producing investments to Puerto Rico and other U.S possessions. While the initial rationale for the credit was the creation of jobs and the stimulation of economic activity in the possessions, the outcome has been far different. Firms with intangible assets now take advantage of transfer pricing laws to maximize profits without making the investments that would create sustainable growth in Puerto Rico. The fundamental questions then are: First, can the long record of disappointment be ended? Second, can the legislation provided in the 1993 budget transform section 936 into an instrument of public benefit, rather than of private profit? We conclude that the costs of section 936 will continue to outweigh its benefits. Published in: "Puerto Rico and Section 936: A Costly Dependence", Tax Notes International Vol 235, IBFD Publications, Amsterdam, The Netherlands (January 16, 1995). JEL Code(s): H25 Keywords: Puerto Rico, investment incentives, private, not public benefits Download: qed_dp_119.pdf Close » "AN AUTONOMOUS REVENUE AUTHORITY FOR SOUTH AFRICA" GLENN P. JENKINS Development Discussion Paper Number: 1995-3 More » AN AUTONOMOUS REVENUE AUTHORITY FOR SOUTH AFRICA GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1995-3 Abstract: Revenue collection requires the intensive exchange of financial information on economic transactions, revenues, expenditures, and incomes with a high degree of voluntary compliance. Furthermore, over the past 15 years the world has experienced a revolution in communication and information technology. It also has experienced a revolution in the opening of markets to global opportunities and competition. If a high degree of voluntary compliance is to be achieved the tax administration must be able to interact with taxpayers using the same types of technology and skills which they are using to carry out their business transactions. JEL Code(s): H20 Keywords: Revenue Collection, Voluntary Compliance, Communication, South Africa Download: qed_dp_118.pdf Close » "ECONOMIC OPPORTUNITY COST OF LABOUR: A SYNTHESIS" GLENN P. JENKINS Development Discussion Paper Number: 1995-2 More » ECONOMIC OPPORTUNITY COST OF LABOUR: A SYNTHESIS GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1995-2 Abstract: In this article the economic opportunity cost of labor has been estimated using the supply price approach under a wide variety of labor market conditions and types of job. This approach is shown to be equivalent to the marginal product of labor foregone approach, when the latter can be estimated accurately. The primary reliance of the supply price approach on the wage rates demanded under the labor conditions of the project greatly facilitates the estimation of this economic parameter for use in the economic valuation of projects. A methodology has been outlined in detail to account for several adjustments that may need to be made to this supply price to reflect special labor market characteristics and distortions. Most of these factors, such as income taxes and unemployment insurance compensation, are straightforward and easy to estimate. Other issues dealing with the quality of the jobs and the nature of the unemployment present require a more detailed examination of the labor market. Once these values have been determined, they are used to adjust the supply price to arrive at an estimate of the economic opportunity cost of labor for a particular skill on a particular project. JEL Code(s): H43 Keywords: labor, economic opportunity costs, supply- price approach Download: qed_dp_117.pdf Close » "THE TRANSITION TO A REVENUE AUTHORITY" JEFFERY M. HALL, GLENN P. JENKINS Development Discussion Paper Number: 1995-1 More » THE TRANSITION TO A REVENUE AUTHORITY JEFFERY M. HALL ITP, Harvard University. GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1995-1 Abstract: This report highlights the issues relevant to the process of transition to a revenue authority, and analyzed elements of the implementing legislation for this form of tax administration. A revenue authority´s capacity to improve tax collection is tied to the political and bureaucratic commitment to the language and spirit of its implementing legislation. Hence, coherent legislative provisions lend strength and credibility to the revenue authority and, are an important complement to the reviews of personnel, systems and resource allocation that should also accompany administrative reforms. JEL Code(s): H20 Keywords: revenue authority reform, tax systems Download: qed_dp_116pdf Close » "A Revenue Simulation Model for the Indirect Tax System in Puerto Rico" CHUN-YAN KUO, LARRY ROSENBERG Development Discussion Paper Number: 1994-6 More » A Revenue Simulation Model for the Indirect Tax System in Puerto Rico CHUN-YAN KUO International Tax Program, Harvard University LARRY ROSENBERG International Institute for Advanced Studies Development Discussion Paper: 1994-6 Abstract: This article describes the indirect tax revenue simulation model developed for the Treasury Department of Puerto Rico. At the beginning, it delineates the model’s objectives and capabilities and details the array of tax policy measures and major modifications to the present tax system. It then explains the methodology used to arrive at the revenue projections, with a more precise explanation of some of technical details. Finally this paper presents the results of several simulations of combinations of alternative sales tax policies for consideration of policy makers. Prepared for: Department of Treasury Puerto Rico. JEL Code(s): H20 Keywords: investment appraisal, stakeholder analysis, allocation of benefits and costs, poverty alleviation Download: qed_dp_186.pdf Close » "THE APPRAISAL OF INVESTMENT PROJECTS: A TEACHING APPROACH" GLENN P. JENKINS Development Discussion Paper Number: 1994-5 More » THE APPRAISAL OF INVESTMENT PROJECTS: A TEACHING APPROACH GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. Development Discussion Paper: 1994-5 Abstract: The ultimate outcome of a public or a private investment is determined by the financial, economic, managerial and political parameters associated with the project. A financial or economic net present value (NPV) calculated on a few sets of input variables tells one very little about the potential of a project if its managerial capability is weak and its political support is fickle. While any analysis has its limitations, a project evaluation that closely links the financial and economic analysis, and in turn identifies the distribution of benefits and costs over the various interest groups, will be far more likely to identify fatal flaws in the design of a project than will an appraisal that segments the analysis and does not address the interdependencies of the components. A key outcome of the appraisal of a project is the identification of the aspects of the project that have the potential to inflict great damage to its performance. With this information the next step is to see if the project can be redesigned (organizationally, financially or physically) so that it becomes more robust and resistant to external or internal shocks. In order to have project evaluations carried out in this way the project analysts should be comfortable with the skills of financial analysis, welfare economics, the evaluation of alternative sources of project uncertainty and estimation of the distribution of costs and benefits across interest groups. Published in: Journal of International Development: Vol. 6, No. 1, 115-122 (1994) JEL Code(s): H43 Keywords: investment appraisal, financial analysis, economic analysis. Download: qed_dp_172.pdf Close » "Puerto Rico: The Economics of Status" GLENN P. JENKINS, J. TOMAS HEXNER Development Discussion Paper Number: 1994-4 More » Puerto Rico: The Economics of Status GLENN P. JENKINS Queen´s University, Kingston, Canada. Eastern Mediterranean University, North Cyprus. J. TOMAS HEXNER Chairman of Hex, Inc. Development Discussion Paper: 1994-4 Abstract: This paper attempts to present an analysis of the economic and fiscal dimensions of Puerto Rican status. The status debate in Puerto Rico has, historically, been heavily concentrated in political analysis of the status options: commonwealth, statehood and independence. The document´s key conclusion is that status has fundamental economic and fiscal implications for the island and for the United States. Statehood would stimulate greater investment and more rapid economic growth through full integration with the U.S. economy and a more stable investment climate. An Analysis of Puerto Rico´s potential for convergence in growth of income to that of the US indicates that the economic policies improved by statehood would spur faster growth through full integration with the U.S. economy. The present Commonwealth status, in addition to promoting dependence - oriented development, has kept Puerto Rico from catching up with the rest of the U.S. In terms its fiscal implications, statehood would actually have been a net benefit to the U.S. Treasury, by imposing income taxes on firms and individuals who now do not paid. Puerto Rico and U.S. citizens living there would benefit from statehood through increased federal transfers and being brought into equality with counterparts on the mainland. Additional transfers to Puerto Rico under statehood would have been outweighed by increased tax revenues. Statehood would eliminate Puerto Rico´s nebulous and uncertain political status which will continue to hinder investment in a future of increasing globalization. Statehood would clearly define Puerto Rico as a "domestic" rather than "foreign" location in the eyes of investors, and distinguish it from other developing countries in the region as competition for investment intensifies. Prepared for: The Citizens Educational Foundation JEL Code(s): H11 Keywords: Puerto Rico, economic status, commonwealth, economic growth, economic reform. Download: qed_dp_170.pdf Close » "TRASITION MEASURES OR TAX POLICY AND ADMINISTRATION: THE WEST BANK AND GAZA STRIP" ROBERT F. CONRAD, GLENN P. JENKINS, JAMES OWENS Development Discussion Paper Number: 1994-3 More » TRASITION MEASURES OR TAX POLICY AND ADMINISTRATION: THE WEST BANK AND GAZA STRIP ROBERT F. CONRAD Department of Economics, Duke University. GLENN P. JENKINS HIID, Harvard University. JAMES OWENS HIID, Harvard University. Development Discussion Paper: 1994-3 Abstract: Recommendations and discussions of the current situation regarding taxation are found in this report: In particular, we believe Palestinian authorities should begin to administer the current system and stabilize tax revenues prior to making significant tax policy changes. We are pleased and support the Palestinian Authority´s efforts to implement many of the IMF recommendations including the continued use of the Israeli tax information system during the transition, the beginning of a public education effort by the director General of Taxation and others, development of initial procedures in the Gaza Strip, the establishment of a review committee to deal with unsettled tax disputes, the recruitment of additional staff, the funding of customs officials and the development of training efforts with Israeli officials, among other measures. Our recommendations support and supplement those provided by the IMF. Prepared for: Harvard Institute for International Development Cambridge MA, 1994. JEL Code(s): Keywords: West Bank, Gaza, Tax Policy Download: qed_dp_115.pdf Close » "GREEN TAXES AND INCENTIVE POLICIES: AN INTERNATIONAL PERSPECTIVE" GLENN P. JENKINS, RANJIT LAMECH Development Discussion Paper Number: 1994-2 More » GREEN TAXES AND INCENTIVE POLICIES: AN INTERNATIONAL PERSPECTIVE GLENN P. JENKINS HIID, Harvard University. RANJIT LAMECH ITP, Harvard University. Development Discussion Paper: 1994-2 Abstract: In this study, we present an overview of the alternative instruments for pollution control. We have included a review of theoretical foundations of market-based incentive instruments and a discussion of the disadvantages of the market-based incentive approach. Most of the study, however, is devoted to discussing the use of pure fiscal (or tax) incentives to influence pollution abatement. To date, such tax incentives have been the dominant form of market-based incentive employed by governments. We analyze the intent and design of investment tax incentives and their economic and environmental impact by studying specific examples from industrialized countries, as well as reviewing the theory of tax incentive instruments. Published as: Green Taxes and Incentive Policies: An International Perspective (with Ranjit Lamech), co-publication of the International Centre for Economic Growth (ICEG) and the Harvard Institute for International Development, ICS Press, San Francisco, California,1994. JEL Code(s): H23 Keywords: pollution, market-based incentives, environment taxes Download: qed_dp_114.pdf Close » "MODERNIZATION OF TAX ADMINISTRATIONS:REVENUE BOARDS AND PRIVATIZATION AS INSTRUMENTS FOR CHANGE" GLENN P. JENKINS Development Discussion Paper Number: 1994-1 More » MODERNIZATION OF TAX ADMINISTRATIONS:REVENUE BOARDS AND PRIVATIZATION AS INSTRUMENTS FOR CHANGE GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1994-1 Abstract: The Proposed model for the administration of taxes is based on the idea that the tax administration must collect the revenue as specified in the law with a high degree of integrity, while rendering better service to the citizen. In other words, it must consider not just administrative costs but also compliance costs. To achieve such objectives, we need to apply the principles and methods of modern management to assist us in the delivery of these administrative services. Published as: "Modernization of Tax Administrations: Revenue Boards as an instrument for change," Bulletin for International Documentation, Vol.48, No. 2,IBFD Publications BV, Amsterdam, The Netherlands, February,1994. JEL Code(s): H20 Keywords: tax administration, revenue boards Download: qed_dp_113.pdf Close » "VALUE ADDED TAXATION: THE POLICY ISSUES" GLENN P. JENKINS Development Discussion Paper Number: 1993-7 More » VALUE ADDED TAXATION: THE POLICY ISSUES GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1993-7 Abstract: The growth of value-added taxation from its first adoption in France in 1954 to its present implementation by more than 60countries is unprecedented by any other concept in taxation. While 80 nations use some form of a VAT, over 40 nations have implemented a comprehensive VAT. Its acceptance by nations in varied economic circumstances and stages of development is most impressive and indicative of the flexibility inherent in its form and design. Since 1984 the world has witnessed a virtual revolution in the field of applied public finance. During the past nine years there have been at least twenty-five major tax reforms that have taken a "systems" approach to the design of taxation systems—i.e., focusing more strongly on the broader tax system rather than individual tax structures. This is a radically different approach from the norm of the previous three decades. While individual variations do exist, they have all sought to simplify the structure of the tax systems and to remove incentives for tax avoidance or evasion. Most of the tax reform proposals put forth by these countries came to similar conclusions; namely, that the best design for indirect taxes is a broad base with a small number of rates. It cannot be coincidental that over 30 countries have implemented value-added taxes in the past five years. Most recent entrants to this group introduced a general consumption tax with only one positive rate of tax. Issued as: "Value Added Taxation: The Policy Issues," Harvard Institute for International Development, 1994. JEL Code(s): H20 Keywords: value-added taxation, tax system, policy issues Download: qed_dp_112.pdf Close » "A REVIEW OF PROPOSALS FOR TAX POLICIES AND ADMINISTRATION IN BOLIVIA" PETER BYRNE, GLENN P. JENKINS Development Discussion Paper Number: 1993-6 More » A REVIEW OF PROPOSALS FOR TAX POLICIES AND ADMINISTRATION IN BOLIVIA PETER BYRNE ITP, Harvard University. GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1993-6 Abstract: The 1986 tax reform in Bolivia was comprehensive and highly successful. Since that time the economy has moved from a state of hyperinflation to one of economic stability and growth. As this process continues there will be a need for additional government revenues to develop social and physical infrastructure that Bolivia needs to achieve a high rate of economic growth. The tax changes that have been put forth build on the 1986 tax reform. At the same time as modifications are made to the existing tax system, great care must be made to make sure that changes add to the stability of the tax system and not introduce changes that will simply create political and business forces that over time will erode the ability of the system to generate revenues. JEL Code(s): H20 Keywords: tax policies, proposals, administration, Bolivia Download: qed_dp_111.pdf Close » "PERSPECTIVE FOR TAX POLICY REFORM IN LATIN AMERICA IN THE 1990´S" GLENN P. JENKINS Development Discussion Paper Number: 1993-5 More » PERSPECTIVE FOR TAX POLICY REFORM IN LATIN AMERICA IN THE 1990´S GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1993-5 Abstract: The tax reforms that took place in Latin America in the 1980´s were designed primarily to enhance revenue collections and provide more stability in the revenue systems. This generally involved placing a greater reliance on value added type taxes, a rationalization and reduction in the number of excise taxes, a reduction in the top statutory income taxes, and improvements in the degree of integration of business and personal taxes on income from business activities. The question that this paper attempts to address is, what should be on the agenda for tax policy changes in Latin America during the remainder of the decade? Issued as: "Perspectives for Tax Policy Reform in Latin America in the 1990´s," Development Discussion paper #505 (Harvard institute for International Development) - Tax Research Series #22 (Harvard international Tax Program), March 1995. JEL Code(s): H20 Keywords: tax policy, reform perspectives, Latin America Download: qed_dp_110.pdf Close » "ENHANCING VOLUNTARY COMPLIANCE BY REDUCING COMPLIANCE COSTS: A TAXPAYER SERVICE APPROACH" GLENN P. JENKINS, EDWIN N. FORLEMU Development Discussion Paper Number: 1993-4 More » ENHANCING VOLUNTARY COMPLIANCE BY REDUCING COMPLIANCE COSTS: A TAXPAYER SERVICE APPROACH GLENN P. JENKINS HIID, Harvard University. EDWIN N. FORLEMU ITP, Harvard University. Development Discussion Paper: 1993-4 Abstract: In this paper an overview is made of the determinants of voluntary tax compliance. Unlike previous treatments of this subject, the cost of taxpayer compliance is considered as an important determinant of overall level of voluntary compliance in a country. A number of ways that tax authorities reduce compliance are discussed, and the most common uses of information technology in providing taxpayer service is described. Finally, the paper considers some of the ways that such activities might be monitored so that only cost-effective measures are implemented. JEL Code(s): H20 Keywords: voluntary tax compliance, cost reduction, monitoring measures Download: qed_dp_109.pdf Close » "SRI LANKA CORPORATION INCOME TAX POLICY: OPTIONS AND RECOMMENDATIONS FOR INDUSTRIAL DEVELOPMENT" GLENN P. JENKINS, JEFFERY M. HALL Development Discussion Paper Number: 1993-3 More » SRI LANKA CORPORATION INCOME TAX POLICY: OPTIONS AND RECOMMENDATIONS FOR INDUSTRIAL DEVELOPMENT GLENN P. JENKINS HIID, Harvard University. JEFFERY M. HALL ITP, Harvard University. Development Discussion Paper: 1993-3 Abstract: This study proposes a revised corporate income tax structure for Sri Lanka. At the heart of the proposal are the objectives of (a) increasing investment incentives, and (b) maintaining corporation income tax revenues. JEL Code(s): H25 Keywords: income tax policies, corporate, investment taxation, incentives, Sri Lanka Download: qed_dp_108.pdf Close » "ADMINISTRATION REFORM FOR FISCAL SYSTEMS IN TRANSITION ECONOMIES: THE CASE OF VIETNAM" GLENN P. JENKINS, SETH E. TERKPER Development Discussion Paper Number: 1993-2 More » ADMINISTRATION REFORM FOR FISCAL SYSTEMS IN TRANSITION ECONOMIES: THE CASE OF VIETNAM GLENN P. JENKINS HIID, Harvard University. SETH E. TERKPER HIID, Harvard University. Development Discussion Paper: 1993-2 Abstract: A clear connection should be made between the design of tax structures and administration reform as a condition for achieving the objectives of an overall reform program. At the moment, the generally accepted view is that administrative reforms should complement policy change; instead of giving either of these reforms preference over the other. The effective implementation of structure reforms depends on the active support of the tax administration, which, de facto, reflects the goodwill and attitude of the government toward change. The capacity of the administration to implement proposed structural changes is another important consideration in tax reform. Published as: Administration Reform for Fiscal System in transition Economies: The Case of Viet Nam." (with Seth E.Terkper) in Tax Notes International, Arlington, Virginia, March 29, 1993. JEL Code(s): H20 Keywords: reform, fiscal systems, transition economies, Vietnam Download: qed_dp_107.pdf Close » "VIETNAM´S TAX REFORMS: POLICIES IN TRANSITION ECONOMIES" GLENN P. JENKINS, SETH E. TERKPER Development Discussion Paper Number: 1993-1 More » VIETNAM´S TAX REFORMS: POLICIES IN TRANSITION ECONOMIES GLENN P. JENKINS HIID, Harvard University. SETH E. TERKPER HIID, Harvard University. Development Discussion Paper: 1993-1 Abstract: Vietnam is an Asian country with a population of about 70 million and annual per capita income of US $190-200. Despite its current status as one of the poorest countries in the world, it has tremendous potential for growth because of its abundant natural resources and an excellent human resource base. Unlike other centrally planned economies of Asia and Eastern Europe, Vietnam had a relatively small public sector administration, aside from the state enterprise structure, and legacy of capitalism in the south of the country. Nevertheless, the impact of public sector on revenue generation had remained very important. Published as: "Viet Nam´s Tax Reforms: Policies in Transition Economies," (with Seth E.Terkper) in Tax Notes International, Arlington, Virginia, February 22, 1993. JEL Code(s): H20 Keywords: tax reform, transition economies, Vietnam Download: qed_dp_106.pdf Close » "TAXATION FOR DEVELOPMENT IN VIET NAM" RICHARD H. PATTEN, GLENN P. JENKINS, DAVID O. DAPICE Development Discussion Paper Number: 1992-8 More » TAXATION FOR DEVELOPMENT IN VIET NAM RICHARD H. PATTEN HIID, Harvard University. GLENN P. JENKINS HIID, Harvard University. DAVID O. DAPICE HIID, Harvard University. Development Discussion Paper: 1992-8 Abstract: Since 1989 the Government of Viet Nam has undertaken a series of fundamental economic reforms that have increased the use markets to set prices and enhanced the role of the non-state sector in the production and distribution of goods and services. During this time Viet Nam has opened up its economy to increase trade with the rest of the world in order to achieve the level of growth rates and development enjoyed by many other countries of the region. This policy of economic rehabilitation and the development of a market economy has required that a fundamental change be made in the way the government is financed. This paper contains an analysis of the tax system and provides a set of recommendation for the future evaluation of the system. JEL Code(s): H21 Keywords: Viet Nam, economic reform, taxation Download: qed_dp_105.pdf Close » "IMPLICATIONS OF ECONOMIC TRANSITION AND DEMOGRAPHICS FOR FINANCING PENSIONS IN THE FORMER SOCIALIST ECONOMIES" GLENN P. JENKINS Development Discussion Paper Number: 1992-7 More » IMPLICATIONS OF ECONOMIC TRANSITION AND DEMOGRAPHICS FOR FINANCING PENSIONS IN THE FORMER SOCIALIST ECONOMIES GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1992-7 Abstract: The public pension systems of the post-socialist economies of Hungary and Poland are financially unsustainable. In addition to being poorly managed, they face many of the same problems that plague pay-as –you-go systems in other countries, including growing benefit expenditures and adverse demographic trends. The transition to market economies has exacerbated the problems in the supply and demand of public pensions in various ways. Stagnating production and trade, and the privatization or liquidation of state-owned enterprises is causing growing unemployment as well as increasing the pressures for early retirement. The result is increased demand for pensions concurrent with a shrinking contributing base. A set of alternative pension financing strategies are suggested in this paper. These proposals are evaluated on the basis of demographic trends and alternative assumptions about the economic growth and institutional development of Hungary and Poland. Published as: "Implications of Economic Transition and Demographic for Financing Pension in the Former Socialist Economies," published in 1992 IIPF Proceedings-Public Finance, The Hague/Koenigstein, 1993. JEL Code(s): G23, H55 Keywords: pensions, financial issues, transition economies Download: qed_dp_104.pdf Close » "BUILDING PRIVATE PENSION SYSTEMS" YVES GUERARD, GLENN P. JENKINS Development Discussion Paper Number: 1992-6 More » BUILDING PRIVATE PENSION SYSTEMS YVES GUERARD Ernst and Young, Canada. GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1992-6 Abstract: The purpose of this study is to provide an outline of the policy issues that arise when instituting a system of private-funded pension plans. At this time, many countries-particularly those in Eastern Europe and Latin America-are rethinking their past social security policies and considering the need for new plans. While each country will have special needs and circumstances, the following represents what we feel are the core public policies required for the sound development of a private pension system that will play a major role in the development of a healthy capital market. Published as: Building Private Pension Systems: (with Yves Guerard), co-publication of the International Centre for Economic Growth (ICEG) and the Harvard Institute for International Development, ICS Press, San Francisco, California,1993. JEL Code(s): G23 Keywords: pension systems, public policies, private funded plans Download: qed_dp_103.pdf Close » "TAX POLICY DESIGN FOR INDUSTRIAL DEVELOPMENT IN SRI LANKA" GLENN P. JENKINS, ALBERTO BARREIX Development Discussion Paper Number: 1992-5 More » TAX POLICY DESIGN FOR INDUSTRIAL DEVELOPMENT IN SRI LANKA GLENN P. JENKINS HIID, Harvard University. ALBERTO BARREIX ITP, Harvard University. Development Discussion Paper: 1992-5 Abstract: The purpose of this study is to develop recommendations for the reform of the corporation income tax system in Sri Lanka in order to improve the fiscal climate for long term industrial investment. The present tax system is characterized by high statutory rates and a wide array of opportunities for tax avoidance. Corporation income tax rates (including surtax) are currently 46% for publicly traded stock companies, 51.75% on privately owned companies, and a rate of 33% on small business enterprises. The tax rates on large companies are high by international standards, particularly for the region. Issued as: "Tax Policy Design for Industrial Development in Sri Lanka" (with Alberto Barreix), Harvard Institute for International Development, September 1992. JEL Code(s): H20 Keywords: taxation, industrial development, Sri Lanka Download: qed_dp_102.pdf Close » "ECONOMIC REFORM AND INSTITUTIONAL INNOVATION" GLENN P. JENKINS Development Discussion Paper Number: 1992-4 More » ECONOMIC REFORM AND INSTITUTIONAL INNOVATION GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1992-4 Abstract: The experiences of countries that have fundamentally changed their fiscal policies demonstrate clearly the need for rapid administrative reform to accompany the policy changes, if these economic reforms are to be successful. Recent innovations in information technology and communications, and the institutional developments in transportation, customs control and taxation have greatly increased control and taxation have greatly increased the potential for administrative reforms to contribute to cost savings and improvements in efficiency. This paper takes into consideration these recent developments, and puts forward a proposal for modernizing the customs and revenue administration system for international trade that is likely to foster growth and efficiency in an increasingly competitive international environment. Published as: "Economic Reform and Institutional innovation", in Bulletin for International Fiscal Documentation, Vol.46, No.12, IBFD Publications BV, Amsterdam, The Netherlands, December 1992. JEL Code(s): F13 Keywords: Economic Reform, Institutional innovation, International Download: qed_dp_101.pdf Close » "PRIVATIZATION AND PENSION REFORM IN TRANSITION ECONOMIES" GLENN P. JENKINS Development Discussion Paper Number: 1992-3 More » PRIVATIZATION AND PENSION REFORM IN TRANSITION ECONOMIES GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1992-3 Abstract: Given the beleaguered state of public social security systems in the former socialist countries of Eastern Europe, especially their massive and growing pension liabilities, some form of funded private pension scheme should be considered. Nominally high payroll taxes which cannot be collected under weak revenue systems jeopardize any publicly-funded safety net pensioners. On the other hand, if these taxes are collected, they may raise wage costs to a level which discourages the growth of the private sector. Some portion of the assets of state enterprises to be privatized should be used to partially offset state´ pension liabilities. Professionally-managed private pension plans, initially funded by newly privatized assets, could assist in the transition to market economies by contributing to the development of capital markets in these countries. Furthermore, linking the process of privatization with the creation and funding of private pension funds would create dispersed private ownership, and substantially alleviate the problem of selling or distributing hard-to-value-state assets. Published as: "Privatization and Pension Reform in Transition Economies", 1991 IIPF Proceedings-Public Finance, The Hague/Koenigstein, 1992. JEL Code(s): H55 Keywords: Pension Reform, Privatization, Transition Economies Download: qed_dp_100.pdf Close » "MARKET-BASED INCENTIVE INSTRUMENTS FOR POLLUTION CONTROL" GLENN P. JENKINS, RANJIT LAMECH Development Discussion Paper Number: 1992-2 More » MARKET-BASED INCENTIVE INSTRUMENTS FOR POLLUTION CONTROL GLENN P. JENKINS HIID, Harvard University. RANJIT LAMECH ITP, Harvard University. Development Discussion Paper: 1992-2 Abstract: The use of market-based incentives (MBIs) as mechanism for influencing pollution abatement has increased greatly in recent years. This trend reflects the realization that the integration of economic and environmental decision-making will induce the private sector to take steps to reduce their pollution emissions levels. Market-based incentive instruments may be broadly classified to include environmental taxes, investment tax incentives, tradeable permits, user charges and deposit refund systems. Until now, policy- makers world wide have continued to place greater emphasis on the use of investment tax incentives since they seem to more effectively balance environmental considerations with concerns about industrial competitiveness. It is becoming increasingly apparent, however, that other MBIs may be more effective mechanisms for influencing pollution abatement in certain circumstances. This report reviews the theoretical foundations for idealized pollution control MBIs. It then focuses in particular on the way in which environmental taxes, deposit refund system and tadeable pollution permits may be more suitable instruments for inducing pollution abatement behaviour. A number of international examples of the implementation of such policies are reviewed. Published as: "Market-Based Incentive Instruments for Pollution Control", (with Ranjit Lamech) in Bulletin for International Fiscal Documentation, Vol. 46,No.11,IBFD Publications BV, Amsterdam, The Netherlands, November 1992. JEL Code(s): Q48 Keywords: Pollution control, market-based incentives Download: qed_dp_99.pdf Close » "FISCAL POLICIES TO CONTROL POLLUTION: INTERNATIONAL EXPERIENCE" GLENN P. JENKINS, RANJIT LAMECH Development Discussion Paper Number: 1992-1 More » FISCAL POLICIES TO CONTROL POLLUTION: INTERNATIONAL EXPERIENCE GLENN P. JENKINS HIID, Harvard University. RANJIT LAMECH ITP, Harvard University. Development Discussion Paper: 1992-1 Abstract: Over the past few decades, the environmental policy debate has evolved to recognize the utility of influencing pollution abatement by using market forces that integrate economic and environmental decision-making. Market-based incentive (MBI) instruments may be broadly classified to include environmental taxes, investment tax incentives, tradable permits, user charges and deposit refund systems. Investment tax credits have been the preferred fiscal instruments for pollution control because they seem to balance environmental considerations with concerns about industrial competitiveness. Their use, however, may not have the desired effect of reducing pollution and may, in certain circumstances, increase emissions levels. The taxes are also sometimes seen as subsidies in disguise. This report is a comparative analysis of the fiscal instruments used by countries in Asia, Europe and North America, whose design philosophy explicitly incorporates an environmental agenda. In particular, it discusses the intent and design of investment tax incentives, presenting a review of the basic theoretical framework necessary for understanding how they function. In addition, it outlines a set of criteria that may be used to evaluate their economic and environmental impact and describes possible legislative and structural revisions that may enhance their effectiveness and promote their efficiency. Published as: "Fiscal Policies to Control Pollution: International Experience", ( with Ranjit Lamech) in Bulletin for international Fiscal Documentation, vol.46, No. 10, IBFD Publications BV, Amsterdam, The Netherlands, October 1992. JEL Code(s): Q48 Keywords: Pollution control, policies international experience Download: qed_dp_98.pdf Close » "Reforming the Canadian Sales Tax System: A Regional General Equilibrium Analysis " BOB HAMILTON, CHUN-YAN KUO Development Discussion Paper Number: 1991-13 More » Reforming the Canadian Sales Tax System: A Regional General Equilibrium Analysis BOB HAMILTON Department of Finance, Canada CHUN-YAN KUO Department of Finance, Canada Development Discussion Paper: 1991-13 Abstract: The paper develops a regional general equilibrium model of the Canadian economy to analyze the sectoral and regional impacts of the major changes to the Canadian sales tax system. The results indicate that replacing the federal sales tax with the goods and service tax increases real output in Canada in the long run by 1.4 percent. If the provincial sales taxes are also integrated, real output increases by a further 0.8 percent. Published at: Canadian Tax Journal, January/February 1991 JEL Code(s): D58, C68 Keywords: Canadian sales tax, goods and services tax, regional general equilibrium model, small open economy, constant elasticity of substitution, cost of capital Download: qed_dp_179.pdf Close » "An Evaluation of the Exploration Tax Credit" CHUN-YAN KUO, W. STEVEN CLARK Development Discussion Paper Number: 1991-12 More » An Evaluation of the Exploration Tax Credit CHUN-YAN KUO Department of Finance, Canada W. STEVEN CLARK Department of Finance, Canada Development Discussion Paper: 1991-12 Abstract: The paper evaluates the economic and fiscal impacts in Canada of the exploration tax credit introduced in December 1985. It has examined such issues as the extent of exploration directly attributable to the credit, the cost of the credit to the federal government in forgone tax revenue, the impact of the credit on findings of undiscovered resources, and the degree to which the credit has accomplished its original objectives. The analysis concludes that the exploration tax credit has provided little stimulus to exploration activity in the oil and gas industry due to the fact that exploration costs are a small percentage of overall costs in most offshore oil and gas projects, offshore oil and gas projects are highly risky, and the exploration tax credit is moderate and taxes are only one of the factors for budget exploration by many companies. Moreover, the incentive seemed not to be introduced solely out of concern about exploration in Canada. Providing assistance to accompany the phasing out of the Petroleum Incentives Program was indeed a main objective. Published at: Department of Finance Canada, Discussion Paper 91-1, January 1991 JEL Code(s): D61, H25, Q38 Keywords: exploration tax credit, frontier energy policy, oil and gas, offshore drilling, cost effectiveness, incrementality Download: qed_dp_173.pdf Close » "MARKET COMPETITIVENESS, RISK, AND ECONOMIC RETURN: THE CASE OF THE LIMASSOL JUICE FACTORY" ANDREAS P. ANDREOU, GLENN P. JENKINS, SAVVAKIS C. SAVVIDES Development Discussion Paper Number: 1991-11 More » MARKET COMPETITIVENESS, RISK, AND ECONOMIC RETURN: THE CASE OF THE LIMASSOL JUICE FACTORY ANDREAS P. ANDREOU Cyprus Development Bank. GLENN P. JENKINS HIID, Harvard University. SAVVAKIS C. SAVVIDES Cyprus Development Bank and Research Fellow, International Tax Program, Harvard University. Development Discussion Paper: 1991-11 Abstract: This paper evaluates the strategic options available to a juice drink manufacturing company in Cyprus who is facing serious problems of survival in an aggressive and rapidly changing market environment. Following an initial screening of possible investments based on qualitative evaluation of the market, the two most promising strategies are formulated and appraised for financial and economic viability. The financial appraisal analyzes the projected cash flows from the owner´s and total investment perspectives. The economic appraisal is then presented along with workings for the derivation of the economic discount rate, foreign exchange premium, and several economic conversion factors for Cyprus. The distributive analysis identifies the externalities generated by the two alternative strategies and allocates them to the various affected groups in the economy. The investment decision is further enhanced by the application of sensitivity and risk analysis which compares the risk profiles of the two strategies. Issued as: "Market Competitiveness, Economic Return and Risk: The Case of the Limassol Juice Company" (with Andreas P. Andreou and Savvakis C. Savvides), Development Discussion Paper No. 380, Harvard Institute for International Development, July 1991. JEL Code(s): H43 Keywords: Cyprus, Limassol Juice factory, market competitiveness, economic strategies Download: qed_dp_97.pdf Close » "A REVIEW OF TAX POLICIES AND ADMINISTRATION IN BOLIVIA" GLENN P. JENKINS, LEON LARRAIN Development Discussion Paper Number: 1991-10 More » A REVIEW OF TAX POLICIES AND ADMINISTRATION IN BOLIVIA GLENN P. JENKINS HIID, Harvard University. LEON LARRAIN Baker and Malaysia, Chile Development Discussion Paper: 1991-10 Abstract: The 1986 tax reform in Bolivia was one of the most radical effective changes of tax policies that any country has undertaken in modern times. After the reform the country was left with a uniform rate of tariff, a uniform value added tax, a set of taxes to complement the vat, a set of excise taxes on specific consumption items, a low turnover tax, a presumptive income tax on corporations, a property tax, and an inheritance tax. Five years later, the tax policies remain largely the same. Bolivia is facing a major revenue shortfall in the next two years. Sales of natural gas to Argentina have been an important source of the revenues of the government and they are anticipated to fall substantially over the next 2 or 3 years. To offset this decline in revenues, and to meet increased government obligations, it is proposed that revenues will have to increase by 1.5 per cent of GDP next year and 2.0 per cent of the GDP in the following year. The strategy to meet this revenue gap is to first improve the administration of taxes to the greatest degree possible and then to consider new tax bases and higher tax rates. JEL Code(s): H20 Keywords: Tax Policies, Administration, Bolivia Download: qed_dp_96.pdf Close » "A TARIFF, EXCISE, AND VAT WITHHOLDING TAX SYSTEM FOR IMPORTING GOODS FOR BOLIVIA" RICARDO GODOY, GLENN P. JENKINS, RICHARD H.PATTEN Development Discussion Paper Number: 1991-9 More » A TARIFF, EXCISE, AND VAT WITHHOLDING TAX SYSTEM FOR IMPORTING GOODS FOR BOLIVIA RICARDO GODOY HIID, Harvard University. GLENN P. JENKINS HIID, Harvard University. RICHARD H.PATTEN HIID, Harvard University. Development Discussion Paper: 1991-9 Abstract: The system outline here is designed to make the maximum use of the great advances and cost savings arising in modern communication. Fax and electronic mail allow for almost instant communication at very low cost between Bolivia and almost every other country in the world. As a consequence, the information on price and quality is more readily available at the place of export than at the point of import; this information can be obtained quickly and inexpensively by Bolivia. The surveyor firms assisting in this system should have access to these new communication facilities. JEL Code(s): H20 Keywords: tax system, imports communication, Bolivia Download: qed_dp_95.pdf Close » "TAX POLICIES FOR INDUSTRIAL DEVELOPMENT" DALE CHUA, GLENN P. JENKINS Development Discussion Paper Number: 1991-8 More » TAX POLICIES FOR INDUSTRIAL DEVELOPMENT DALE CHUA Queen´s University. GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1991-8 Abstract: In 1989 the government of Sri Lanka appointed a commission to undertake a comprehensive analysis of its tax system. The commission completed its work in 1990 and published its findings in the Report of The Taxation Commission, 1990, Sessional paper No. 1- June 1991. This report is a comprehensive examination of the present tax system and among its objectives was to consider the tax policy and administrative issues that have an impact on the incentives for the private sector to undertake productive investments. We viewed our task as one of finding ways to make some of the recommendations of the commission operational and to explore ways to make the tax system more efficient and effective. Issued as: "Tax policies for Industrial Development" (with Dale Chua), Harvard Institute for International Development, October 1991. JEL Code(s): H20 Keywords: tax systems, tax efficiency, effectiveness, Sri Lanka Download: qed_dp_94.pdf Close » "TAX POLICY ISSUES IN EMERGING MARKET ECONOMIES" GLENN P. JENKINS Development Discussion Paper Number: 1991-7 More » TAX POLICY ISSUES IN EMERGING MARKET ECONOMIES GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1991-7 Abstract: This paper examines a number of characteristics of East European economies-i.e., the degree of state ownership and public sector social expenditure- and considers the type of tax policies that would be appropriate for the immediate future. The conclusions are that the tax policies needed by these countries are quite different than those usually prescribed in developed countries and must be implemented quickly to avoid the financial collapse of the public sector. For many years, the income tax system will be largely irrelevant. Due to the very weak tax administration and the emerging private sector enterprises, the tax system must be very simple, yet with a number of built in constraints to curb tax evasion. Published as: "Tax policy Issues in Emerging Market Economies", in Policy Forum on Economic Development in the Soviet Union and Eastern Europe: Implications for Canada, edited by Douglas Purvis, Policy Forum Series: The John Deutsch Institute for the Study of Economic Policy, queens University: Kingston, Ontario, Canada, 1990. JEL Code(s): H20 Keywords: Tax Proposals, Reform, emerging markets, Eastern Europe Download: qed_dp_93.pdf Close » "THE POLITICAL ECONOMY OF AGRICULTURAL PRICING POLICY: MALAYSIA" GLENN P. JENKINS, ANDREW KWOK-KONG LAI Development Discussion Paper Number: 1991-6 More » THE POLITICAL ECONOMY OF AGRICULTURAL PRICING POLICY: MALAYSIA GLENN P. JENKINS HIID, Harvard University. ANDREW KWOK-KONG LAI Treasury, Government of Malaysia. Development Discussion Paper: 1991-6 Abstract: Since 1960 Malaysia has become a highly efficient producer of natural rubber, thanks to its agricultural and trade policies. The primary purpose of these policies has been to maintain political and economic balance. Consequently, Malaysia´s leaders have concentrated on modifying agricultural pricing policies in degrees (for example, by adjusting to fluctuating world prices) rather than in kind, and they have endeavored to keep the producer price of rice stable and thus maintain the real purchasing power of the country´s politically powerful paddy farmers; help rubber and palm oil farmers improve productivity; set taxes on rubber and palm oil levels that provide funds for public investment; maintain an economy with fairly low or no tariffs on imported consumer goods and with very low or no tariffs on imported inputs; and contribute significant amounts of the revenues obtained from export of oil to the agricultural sector. The policies used to achieve these goals from 1960 to 1983, and their impact on Malaysian agriculture, are the subjects of this chapter. Published as: "Malaysia"(with Andrew Kwok-Kong Lai), chapter 3 in The Political Economy of Agricultural Pricing Policy, Vol. 2, Asia, edited by Anne O. Krueger, Maurice Schiff, Alberto Valdes, The John Hopkins University Press, 1991. JEL Code(s): Q17 Keywords: Agricultural, Pricing Policy, Malaysia Download: qed_dp_92.pdf Close » "VALUE-ADDED TAX REFORM: PROPOSALS FOR THE DOMINICAN REPUBLIC" GLENN P. JENKINS, RANJIT LAMECH Development Discussion Paper Number: 1991-5 More » VALUE-ADDED TAX REFORM: PROPOSALS FOR THE DOMINICAN REPUBLIC GLENN P. JENKINS HIID, Harvard University. RANJIT LAMECH ITP, Harvard University. Development Discussion Paper: 1991-5 Abstract: The growth of value added taxation from its first adoption in France in 1954, to its present implementation by more than sixty countries is unprecedented in the field of taxation. While sixty nations use one or another form of VAT, forty nations have implemented a comprehensive VAT. Its acceptance by nations in varied economic circumstances and stages of development, is most impressive of the flexibility inherent in its form and design. Since 1984 the world has witnessed a virtual revolution in the field of applied public finance. During the past seven years there have been at least twenty major tax reforms that have taken a "systems" approach to the design of taxation systems i.e. focusing more strongly on the broader tax system rather than individual tax structures. This is a radically different approach from the norms of the previous three decades. While individual variations do exist, they all sought to simplify the structure of the tax systems and to remove incentives for tax avoidance or evasion. JEL Code(s): H27 Keywords: Tax Reform, VAT Proposals, Dominican Republic Download: qed_dp_91.pdf Close » "RESOURCE TAXATION AND PROJECT FEASIBILITY: THE MISIMA GOLD MINE, PAPUA, NEW GUINEA" GLENN P. JENKINS, GANGADHAR P.SHUKLA Development Discussion Paper Number: 1991-4 More » RESOURCE TAXATION AND PROJECT FEASIBILITY: THE MISIMA GOLD MINE, PAPUA, NEW GUINEA GLENN P. JENKINS HIID, Harvard University. GANGADHAR P.SHUKLA HIID, Harvard University. Development Discussion Paper: 1991-4 Abstract: This paper is about the feasibility of a gold mine in Papua New Guinea (PNG), with particular emphasis on fiscal issues involved in a mining project. The study begins by considering the market for gold and a description of the technical aspects of the Misima gold mine in PNG. The financial analysis of the project covers both the total investment and the owners´ perspectives. As grade selection is a significant issue in an extractive project, the case where the grade selection profile follows the path of discounted prices is also examined. A sensitivity analysis is performed on the parameters of the project that are likely to vary over time. The economic analysis is done after estimating the economic costs of capital, foreign exchange, and labor for the PNG economy. Results are also obtained for the case when the entire investment may be treated as incremental. The social analysis identifies the externalities generated by the project and assigns them to the various agents in the economy. A risk analysis is completed for those variables that are relatively uncertain and have a high impact on the project. Alternatively forms of fiscal regimes prevalent in the mining sector and their effect both on the variability of the government revenue, as well as on the investor´s earnings, are also considered. Finally, the tax-like disincentives caused by an overvalued exchange rate in the resource-owning countries are demonstrated. Issued as: "Resource Taxation and Project Feasibility: The Misma Gold Mine,Papua New Guinea" (with G.P Shukla), Development Discussion Paper No.376, Harvard Institute for International Development, January,1991). JEL Code(s): H25, Q32 Keywords: resource taxation, gold mining, Papua New Guinea Download: qed_dp_90.pdf Close » "REFORMING EXCISE TAXES: PROPOSALS FOR THE DOMINICAN REPUBLIC" ALBERTO BARREIX, GLENN P. JENKINS, RANJIT LAMECH Development Discussion Paper Number: 1991-3 More » REFORMING EXCISE TAXES: PROPOSALS FOR THE DOMINICAN REPUBLIC ALBERTO BARREIX ITP, Harvard University GLENN P. JENKINS HIID, Harvard University. RANJIT LAMECH ITP, Harvard University Development Discussion Paper: 1991-3 Abstract: Excise taxation is one of the oldest forms of government revenue instruments in the world. It can be traced back to the Han dynasty in china, and Mauryan period in India. The term excise may be attributed to the Dutch, whose duties on bear, sugar, spirits and other goods were called excijsen. Part 1, of this paper provides a theoretical overview of excise taxation discussing aspects of design, economic efficiency and administration. Part 2, focuses on the excise reform proposals in the Dominican Republic. The proposals are in the framework of the evolving indirect tax system in the country. JEL Code(s): H27 Keywords: Excise Taxes, Reform, Dominican Republic Download: qed_dp_89.pdf Close » "REFORM OF INDIRECT TAXES FOR ZAMBIA :ADMINISTRATION AND POLICY" FRANK FLATTERS, GLENN P. JENKINS, IAN ROXAN Development Discussion Paper Number: 1991-2 More » REFORM OF INDIRECT TAXES FOR ZAMBIA :ADMINISTRATION AND POLICY FRANK FLATTERS Queen´s University, Canada GLENN P. JENKINS HIID, Harvard University. IAN ROXAN HIID, Harvard University. Development Discussion Paper: 1991-2 Abstract: Indirect taxes currently account for more than 50 percent of the government of Zambia´s non-capital recurrent revenues. For 1990, it is estimated that customs duties accounted for about 25 per cent of total indirect taxes, with import sales amounting to 34 per cent, local sales taxes 18 per cent, and excise taxes raising 23 per cent. There are many positive aspects to the current situation of the customs, excise and sales tax systems. A significant rationalization of the tariff structure has been implemented this year. There are only two rates of import sales taxes (20 and 0 per cent). Basically a value added tax type of administration is used to integrate the sales taxes on imported and locally produced goods at the manufacturer´s level. While the administrative procedures could be significantly streamlined and modernized, the fundamentals in terms of available personnel and the current plans of senior management to simplify and strengthen the sales tax system is an excellent basis for moving forward. JEL Code(s): H27 Keywords: Indirect Taxes, reform, administration, policy, Zambia Download: qed_dp_88.pdf Close » "INCOME TAX REFORM FOR ZAMBIA: ADMINISTRATION AND POLICY" GLENN P. JENKINS, JAMES OWENS, IAN ROXAN Development Discussion Paper Number: 1991-1 More » INCOME TAX REFORM FOR ZAMBIA: ADMINISTRATION AND POLICY GLENN P. JENKINS HIID, Harvard University. JAMES OWENS HIID, Harvard University. IAN ROXAN HIID, Harvard University. Development Discussion Paper: 1991-1 Abstract: This report reviews the current administration of income and tax policy issues in Zambia and makes recommendations for reform of the income tax law and administration of the laws. JEL Code(s): H24 Keywords: Income Taxes, Tax Administration, Tax Policy, Zambia Download: qed_dp_87.pdf Close » "Evaluating the Demand Effects of Alternative Excise Tax Structures for Alcoholic Beverages " CHUN-YAN KUO Development Discussion Paper Number: 1990-6 More » Evaluating the Demand Effects of Alternative Excise Tax Structures for Alcoholic Beverages CHUN-YAN KUO Department of Finance, Canada Development Discussion Paper: 1990-6 Abstract: The paper is to analyze the inter-industry price and demand effects that were likely to arise from the system of excise tax indexation. The system existed in the period April 1981 to August 1984 in Canada. The paper points out that the unintended cross price effects can be very large when there are large non-neutral unit taxes and the number of commodities in the price index is few. JEL Code(s): H22, H27 Keywords: alcoholic beverages, producer´s price, unit tax, ad valorem tax, indexation Download: qed_dp_180.pdf Close » "A TARIFF, EXCISE AND VAT WITHHOLDING TAX SYSTEM FOR IMPORTED GOODS" GLENN P. JENKINS, GORDON COX Development Discussion Paper Number: 1990-5 More » A TARIFF, EXCISE AND VAT WITHHOLDING TAX SYSTEM FOR IMPORTED GOODS GLENN P. JENKINS HIID, Harvard University. GORDON COX HIID, Harvard University. Development Discussion Paper: 1990-5 Abstract: The implementation of a system for the withholding of taxes prior to the final clearance of these goods by Customs would strengthen the revenue capacity of the VAT and the tariffs to raise revenues. This system would allow the Customs Department to maintain the same powers of inspection and completion of final assessment as at the present time. The change would be that prior to clearance the importers would pay a customs withholding tax (CWT) through their banks based on an estimation of the taxes due. The estimate of the taxes due would be prepared by the Surveyor after carrying out an inspection of the goods at the point of export. JEL Code(s): F13 Keywords: imports, withholding taxes, customs, Indonesia Download: qed_dp_86.pdf Close » "THE ROAD TO PRIVATIZATION AND CAPITAL MARKETS IN THE CONTEXT OF PENSION REFORM IN HUNGARY" GLENN P. JENKINS, YVES GUERARD, ANTAL DEUTSCH Development Discussion Paper Number: 1990-4 More » THE ROAD TO PRIVATIZATION AND CAPITAL MARKETS IN THE CONTEXT OF PENSION REFORM IN HUNGARY GLENN P. JENKINS HIID, Harvard University. YVES GUERARD Ernst and Young, Canada. ANTAL DEUTSCH McGill University. Development Discussion Paper: 1990-4 Abstract: In developed countries pension funds are an integral part of the private capital market. The portfolios of assets represent a large fraction of the total debt and equity of private sector enterprises. The development of a set of private pension plans in Hungary and funding now for the past service pension credits of their members, provides an ideal avenue for privatizing a large part of the state owned sector in Hungary. JEL Code(s): H55 Keywords: pension reform, privatization, Hungary Download: qed_dp_85.pdf Close » "FISCAL POLICIES FOR MINING (GOLD) IN THE PACIFIC ISLANDS" GLENN P. JENKINS, G.P. SHUKLA Development Discussion Paper Number: 1990-3 More » FISCAL POLICIES FOR MINING (GOLD) IN THE PACIFIC ISLANDS GLENN P. JENKINS HIID, Harvard University. G.P. SHUKLA HIID, Harvard University. Development Discussion Paper: 1990-3 Abstract: This report develops a model to evaluate and formulate policy measures for the mineral (gold) sector and examines some issues which may be significant from the perspective of the government decision makers in resource rich developing countries. An appraisal methodology is outlined for financial, economic and social analysis of a mining project and detailed guidelines are presented for applying it. Techniques for computing some important parameters are also laid down. For the sake of illustration, the methodology is then applied to data for the ´Misima´ mine in Papua New Guinea. An examination is carried out of the impact of royalties on high grading, the significance of particular debt-equity ratios from the points of view of both the firm´s earnings and the government revenue and the effects of domestic and world inflation rates. Issued as: "Fiscal Policies for the Mineral (GOLD) Sector in the Pacific Islands" (with G.P Shukla), Harvard Institute for International Development, March 1990. JEL Code(s): H25 Keywords: gold-mining, fiscal policies, Pacific Islands Download: qed_dp_84.pdf Close » "TAX SHELTER FINANCE: HOW EFFICIENT IS IT?" GLENN P. JENKINS Development Discussion Paper Number: 1990-2 More » TAX SHELTER FINANCE: HOW EFFICIENT IS IT? GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1990-2 Abstract: Of the various types of financing instruments generally used because of the particular tax treatment they receive two of the more popular are limited partnerships and flow-through shares. This article attempts to evaluate their efficiency- that is, to determine the present value of tax revenues given up by the government per additional present –value dollar received by the developer of the real estate or mining project as a result of the tax shelter financing instrument. An analytical framework is developed for each type of financing instrument. The outcomes using tax shelter financing are compared with the situation using normal equity financing. The framework is then used to examine nine actual cases of limited partnerships dealing with real estate investments in Canada and seven actual flow-through share funds. The developer´s expectations of the future value of the property are a key variable determining the efficiency of a limited partnership. Even if the developer expects the real value of the property to fall to about half its current cost, the Canadian government will lose about $2.50 in tax revenues for every $1.00 gained by the developer. In the case of flow-through shares the average cost to the government in lost revenues is between $1.83 and $2.68 per $1.00 of net benefit received by the resource company. These results indicate that such tax shelter finance instruments are not efficient vehicles for allowing companies to utilize tax losses. Instead of continuing such tax shelter, the authorities should consider designing more efficient after-tax financing instruments, introducing a greater degree of direct refundability of losses, or eliminating the tax incentives that create the tax losses. Published as: "Tax Shelter Finance: How Efficient Is It?" in Canadian Tax Journal, Vol. 38, No.2, March 1990. JEL Code(s): H25 Keywords: tax shelter, partnerships, shares, Canada Download: qed_dp_83.pdf Close » "INTERNATIONAL TRADE IN ENERGY: THE CHUKHA HYDRO- ELECTRIC PROJECT IN BHUTAN" GLENN P. JENKINS, D.N.S. DHAKAL Development Discussion Paper Number: 1990-1 More » INTERNATIONAL TRADE IN ENERGY: THE CHUKHA HYDRO- ELECTRIC PROJECT IN BHUTAN GLENN P. JENKINS HIID, Harvard University. D.N.S. DHAKAL Colorado School of Mines, USA Development Discussion Paper: 1990-1 Abstract: Historically, one of the most fruitful applications of financial and economic cost-benefit analysis has been in electricity systems planning. Because of the capital intensive nature of the production technology and the possibilities of substitution between capital and fuel, the potential for savings through correct choice of timing, technology and scale are immense. This particular project is unique because these decisions involve two political jurisdictions, India and Bhutan. Furthermore, the value of Bhutan´s unique natural resources, its hydro-electric sites, is entirely determined by their potential to save India´s scarce economic resources, both capital and fuel. The 336MW Chukha hydro-electricity project was built by India on a turnkey basis, with India providing 60% of the capital in a grant and 40% in a loan at highly concessional terms and conditions. In the arrangement, India receives in turn all the electricity generated from the project in excess of Bhutan´s demand at much cheaper prices than India´s generation cost from alternative sources. The analysis, therefore involves an ex ante financial and economic evaluation of the project from viewpoint of Bhutan and India, taking into consideration the project´s terms and conditions, the alternative cost of power generation for India, and the engineering risks and environmental costs. The project is considered beneficial to both Bhutan and India, although its terms and conditions are not inflation-proof. Issued as: "International Trade in Energy: The Chukha Hydroelectric Project in Bhutan" (with D.N.S Dhakal), Discussion Paper No. 412, Harvard Institute for International Development, November 1991. JEL Code(s): H20 Keywords: international trade, electricity, Bhutan Download: qed_dp_82.pdf Close » "TRADE, EXCHANGE RATE AND AGRICULTURAL POLICIES IN MALAYSIA" GLENN P. JENKINS, KONG LAI Development Discussion Paper Number: 1989-4 More » TRADE, EXCHANGE RATE AND AGRICULTURAL POLICIES IN MALAYSIA GLENN P. JENKINS HIID, Harvard University. KONG LAI HIID, Harvard University. Development Discussion Paper: 1989-4 Abstract: Malaysia, a country of approximately 16 million people which gained independence in 1957, relied heavily on trade to achieve substantial growth in GNP during the 1960s (6.7 percent per year) and 1970s (10.5 percent per year). In the period 1980-83, however, the rate slipped to 3.1 percent per year. Malaysia´s traditional exports are natural rubber and palm oil, but in the 1970s the country also became an important exporter of crude oil. During the study period (1960-83) government intervention through the taxation of natural rubber and palm oil has made the cultivation of these two products less profitable for farmers while also reducing foreign exchange earnings. At the same time, the government organized a research and replanting system for these crops that has dramatically increased their average yield, and as a consequence, farmers´ income. In contrast to its policies for natural rubber and palm oil, Malaysia steadily intervened in the price of rice during the study period to improve producer prices. Self sufficiency in rice-production has long being a goal, but one that has never been achieved, even though per capital consumption fell from 140 kg in 1960 to 104 kg in 1983. Direct intervention in rice prices has taken the form of a guaranteed minimum price which was raised substantially in the late 1970s. Agricultural pricing policies in Malaysia have been remarkably stable over time. They have ensured that the price of paddy relative to nonagricultural prices has increased slightly over time, while maintaining the real income of rubber and palm oil farmers through increases in productivity. Although the potential for political instability is always present in this ethnically diverse country, the government´s agricultural policies have helped to maintain a level of political stability that has allowed the economy to flourish. Published as: Trade, Exchange Rate, and Agricultural Pricing Policies in Malaysia (with Andrew Kwok-Kong Lai) World Bank, Comparative Studies Series, June 1989. JEL Code(s): F14 Keywords: Malaysia, agriculture, trade policies Download: qed_dp_81.pdf Close » "TOURISM, ENVIRONMENT AND PROFITABILITY: THE CASE OF THE PAPHOS HOLIDAY COMPLEX" ANDREAS P. ANDREOU, GLENN P. JENKINS, SAVVAKIS C. SAVVIDES Development Discussion Paper Number: 1989-3 More » TOURISM, ENVIRONMENT AND PROFITABILITY: THE CASE OF THE PAPHOS HOLIDAY COMPLEX ANDREAS P. ANDREOU Cyprus Development Bank. GLENN P. JENKINS HIID, Harvard University. SAVVAKIS C. SAVVIDES Cyprus Development Bank and Research Fellow, International Tax Program, Harvard University. Development Discussion Paper: 1989-3 Abstract: This paper presents a project evaluation study in which the methodological tools of investment appraisal and risk analysis are applied. It examines the feasibility of a hotel project in Cyprus covering all aspects of investment appraisal. It begins with an analysis of the market for tourism in Cyprus and a definition of the project concept. The financial appraisal analyzes the project cash flow from the investment and owners´ perspectives. The economic appraisal of the project is completed after working out the economic discount rate, foreign exchange premium and a series of economic conversion factors for Cyprus. The distributive analysis identifies the project externalities and show how these may be attributed to various economic groups. Sensitivity and risk analysis further enhance the appraisal by identifying and measuring the level of uncertainty surrounding the projected results. Finally, the study considers the impact of the project on the environment. Issued as: "Tourism, Environment, and Profitability: The Case of the Paphos Holiday Complex" (with Andreas P. Andreau And Savvakis C. Savvides), Development Discussion Paper No. 330, Harvard Institute for International Development, November 1989. JEL Code(s): H43 Keywords: Cyprus, Paphos holiday complex, project evaluation Download: qed_dp_80.pdf Close » "TAX REFORM: LESSONS LEARNED" GLENN P. JENKINS Development Discussion Paper Number: 1989-2 More » TAX REFORM: LESSONS LEARNED GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1989-2 Abstract: In recent years there have been over twenty tax reforms that have taken a very different approach to the design of tax systems than those done one or two decades ago. This paper attempts to outline the changes that have taken place in the approach and policies of tax reform. A comparison is made between the previous tax reform efforts and the successful tax reforms that have taken place in the 1980s. Through time it has become obvious that highly progressive statutory income tax rate structures have contributed very little to bringing about a more equitable distribution of income. As a consequence, recent tax reforms have aimed at creating simpler systems with lower rates and broader tax bases. There is some evidence that the indirect tax system has assumed an increased role in the revenue systems of many countries. The value-added tax has spread rapidly since 1980, often with only one or two rates of tax action. In the case of LCDs, in spite of the availability of the microcomputer as an administrative tool, the efforts to create more efficient revenue systems are still greatly constrained by the inability to implement administrative reforms. Published as: "Tax Reform: Lesson Learned", Chapter 11 in Reforming Economic Systems in Developing Countries, edited by Dwight H. Perkins and Michael Roemer, Cambridge, Massachusetts, Harvard University Press, 1991. JEL Code(s): H20 Keywords: tax reform, approach, policies Download: qed_dp_79.pdf Close » "ECONOMIC INEFFICIENCY AND TAX SHELTER FINANCE" GLENN P. JENKINS Development Discussion Paper Number: 1989-1 More » ECONOMIC INEFFICIENCY AND TAX SHELTER FINANCE GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1989-1 Abstract: When a large number of firms are not able to use the tax preferences as fast as legally allowed, pressures arise to create innovative after-tax financing (tax shelter) instruments. The purpose of these financing instruments is to transfer the tax losses of the corporation to investors who are willing to buy these losses to offset their taxable income. In the case of unused tax credits, they are purchased to offset their tax liabilities directly. These instruments provide the income tax system with a measure of indirect refundability of tax losses. Two more popular types of after-tax financing instruments in Canada are limited partnerships and flow-through. The objective of this paper is to evaluate how efficient these financial instruments are in providing such enterprises with tax loss refundability. JEL Code(s): H25 Keywords: economic inefficiency, after-tax financing, Canada Download: qed_dp_78.pdf Close » "Measuring the Non-Neutralities of Sales and Excise Taxes in Canada " CHUN-YAN KUO, THOMAS C. MCGIRR, SATYA N. PODDAR Development Discussion Paper Number: 1988-8 More » Measuring the Non-Neutralities of Sales and Excise Taxes in Canada CHUN-YAN KUO Department of Finance, Canada THOMAS C. MCGIRR Department of Finance, Canada SATYA N. PODDAR Clarkson Gordon, Canada Development Discussion Paper: 1988-8 Abstract: The paper develops a theoretical framework to measure the effective federal and provincial sales tax rates for final demand commodities. The results show that non-neutralities exist not only in the federal sales tax but also in other taxes in the Canadian commodity tax system. One of the most significant findings is that the combined hidden federal and provincial sales tax content of exports may be as much as 1.3 percent of their sales value. Published at: Canadian Tax Journal, May/June 1988 JEL Code(s): D57, D62 Keywords: non-neutralities, sales tax, excise tax, input-output model, exports, Canada Download: qed_dp_178.pdf Close » "Considerations for the Tax Mix" BOB HAMILTON, CHUN-YAN KUO, SATYA N. PODDAR Development Discussion Paper Number: 1988-7 More » Considerations for the Tax Mix BOB HAMILTON Department of Finance, Canada CHUN-YAN KUO Department of Finance, Canada SATYA N. PODDAR Clarkson Gordon, Canada Development Discussion Paper: 1988-7 Abstract: The paper reviews changes in the tax mix in Canada and several developed countries over the past two decades and outlines the key factors that influence it. The tax mix in Canada is largely similar to other OECD countries with two major exceptions. The first is a larger percentage share of excise and other taxes in Canada than other OECD countries. The second is Canada social security tax share well below the OECD average. Published at: Osgoode Hall Law Journal, Summer 1988 JEL Code(s): H24, H25 Keywords: tax mix, consumption tax, income tax, social security tax, capital mobility, OECD Download: qed_dp_177.pdf Close » "PRAGMATISM AND STABILITY: THE POLITICAL ECONOMY OF AGRICULTURAL PRICING POLICIES IN MALAYSIA, 1960-1983" GLENN P. JENKINS, ANDREW KWOK-KONG LAI Development Discussion Paper Number: 1988-6 More » PRAGMATISM AND STABILITY: THE POLITICAL ECONOMY OF AGRICULTURAL PRICING POLICIES IN MALAYSIA, 1960-1983 GLENN P. JENKINS HIID, Harvard University. ANDREW KWOK-KONG LAI HIID, Harvard University. Development Discussion Paper: 1988-6 Abstract: This study examines the development and evolution of Malaysian agricultural pricing policies in relation to rubber, oil palm, and paddy for the period 1960 to 1983. Particular emphasis is placed on tracing the political pressures that generated and sustained these policies. The magnitude of these pricing policies is measured in terms of the nominal and effective rates of protection they generate; their impact on output, consumption, and foreign exchange earnings is then estimated; and finally, the implications of these policies for the government budget and the incomes of rural households are assessed. It is shown that the agricultural pricing policies have been remarkably stable over this period. These policies have ensured that the price of paddy relative to non-agricultural prices has increased slightly over time. While the rubber and the palm oil sectors have been taxed, substantial funds have been spent on research, replanting, and rural infrastructure that have promoted rural development and the expansion of these export crops. Issued as: "Pragmatism and Stability: The Political Economy of Agricultural Pricing Policies in Malaysia, 1960-1983" (with Andrew Kwok-Kong Lai), Harvard Institute of Economic Research Discussion paper No. 275 August, August, 1998. JEL Code(s): Q18 Keywords: Malaysia, agricultural pricing policies Download: qed_dp_77.pdf Close » "TRADE, PROTECTIONISM, AND INDUSTRIAL ADJUSTMENT: The Consumer Electronics Industry in North America" GLENN P. JENKINS Development Discussion Paper Number: 1988-5 More » TRADE, PROTECTIONISM, AND INDUSTRIAL ADJUSTMENT: The Consumer Electronics Industry in North America GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1988-5 Abstract: The focus of this paper is on the trade and industrial adjustment in the television sector of the consumer electronics industry in the North American economy. This is the sector of the industry that has received the greatest amount of protection from imports of foreign-produced goods. Both Canada and the United States have experienced a complete change in the industrial structure and patterns of trade in the television industry over the past decade, but the range of trade policies employed by the two countries has been quite different. The first part of the paper outlines the Canadian experience; an analysis of the U.S experience is contained in the second part. Published as: "Trade, Protectionism and Industrial Adjustment: The Consumer Electronics Industry in North America," in Trade, Protectionism and Industrial Adjustment. North- South Institute for South-East Asian Studies, September 1989. JEL Code(s): F16 Keywords: television sector, trade protectionism, U.S. and Canada Download: qed_dp_76.pdf Close » "TAX CHANGES BEFORE TAX POLICIES: SRI LANKA 1975-1988" GLENN P. JENKINS Development Discussion Paper Number: 1988-4 More » TAX CHANGES BEFORE TAX POLICIES: SRI LANKA 1975-1988 GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1988-4 Abstract: This study examines the changes in tax policies that occurred in Sri Lanka after the change in Government in 1977. These policies are evaluated in the context of the major reforms that were carried out on most aspects of the economy. These fundamental reforms have experienced significant success in terms of economic growth and employment. The numerous tax incentives and tax holidays initially weakened the income tax system, but significant progress was made with regard to indirect taxation for both domestic and traded goods. After a number of years of consistent economic management, steps have been taken to apply more economically oriented tax policies to strengthen and rationalize the tax system. One result of these changes is that the administration cost of the tax system in terms of revenue collected has been reduced by 50 per cent. Published as: "Tax Changes Before Tax Policies: Sri Lanka, 1977-88," in Tax Reform in Developing Countries, edited by Malcolm Gillis, Duke University Press, 1989. JEL Code(s): H25 Keywords: tax policies, post 1975, Sri Lanka Download: qed_dp_75.pdf Close » "COST-EFFECTIVENESS OF AFTER-TAX FINANCING: FLOW-THROUGH SHARES AND LIMITED PARTNERSHIPS" GLENN P. JENKINS Development Discussion Paper Number: 1988-3 More » COST-EFFECTIVENESS OF AFTER-TAX FINANCING: FLOW-THROUGH SHARES AND LIMITED PARTNERSHIPS GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1988-3 Abstract: A common assumption in the economic literature when measuring the effective rate of corporation taxation or estimating the cost of capital is that all the tax incentives can be utilized by the firms in the period that the incentives are legally available to them. For this assumption to hold either the firms that receive the tax incentives must always have positive taxable income, or the government provides full and immediate refund of the tax value of taxable losses. In reality, neither of these conditions exists. The potential effectiveness of tax incentives for stimulating total investment, or even of a specific type, is greatly reduced. Two of the more popular types of after-tax financing instruments in Canada that have been designed to address this problem are flow-through shares and limited partnerships. JEL Code(s): H25 Keywords: after-tax financing, flow-through shares, partnerships Download: qed_dp_74.pdf Close » "DO THOSE UNEMPLOYED LONGER WORK LONGER?" GLENN P. JENKINS, GRAHAM GLENDAY Development Discussion Paper Number: 1988-2 More » DO THOSE UNEMPLOYED LONGER WORK LONGER? GLENN P. JENKINS HIID, Harvard University. GRAHAM GLENDAY HIID, Harvard University. Development Discussion Paper: 1988-2 Abstract: The analysis of the relationship of the average durations of employment and unemployment spells across labor force participants over an extended period is used to study the long-run structure of unemployment. Based on this relationship, how the unemployment rates of individuals vary with their average durations of unemployment and employment and with their frequencies of unemployment spells can be found. These relationships are derived graphically and algebraically, and are estimated, controlling for differences in age, sex, labor market experience and degree of seasonality of employment, for a sample of workers experiencing frequent unemployment spells over an extended period in labor force. The sample is drawn from a data base giving the week-by-week labor market experience over an eight-year period (1972-79) for Canadian workers claiming unemployment insurance. With the exception of young inexperienced workers, a positive relationship was found between the average durations of employment and unemployment experienced by these individuals: those who are unemployed longer also tend to work longer. As a result, those with shorter average durations of unemployment tend to have the higher frequencies of unemployment spells and the lower individual unemployment rates. Hence, the counter intuitive relationship arises that those workers with higher turnover rates have the lower individual unemployment rates among this group of frequently unemployed individuals. It is suggested that this observed pattern of employment and unemployment is consistent with many of these workers making voluntary ( if not precise) choices about the proportion of time they want to be employed and unemployed over the longer run given the labor market incentives they face, particularly those provided by the unemployment insurance system. Issued as: "Do Those Unemployed Longer Work Longer?" (with Graham Glenday), Development Discussion Paper No. 274, Harvard Institute for International Development, August, 1988. JEL Code(s): J21 Keywords: unemployment, insurance incentives, Canada Download: qed_dp_73.pdf Close » "AN EXAMINATION OF PUBLIC SECTOR FINANCES IN CENTRAL AMERICA" GLENN P. JENKINS, CARLOS R. GUTIERREZ Development Discussion Paper Number: 1988-1 More » AN EXAMINATION OF PUBLIC SECTOR FINANCES IN CENTRAL AMERICA GLENN P. JENKINS HIID, Harvard University. CARLOS R. GUTIERREZ HIID, Harvard University. Development Discussion Paper: 1988-1 Abstract: This paper examines the public sector finances of four Central American Countries in terms of revenues, expenditures and deficits for the period of 1980 to 1986. The large central government deficits are a reflection of the steady growth of current expenditures, including rising public sector debt service payments, increases in military spending, and transfer to other levels of government. The prevailing tax structures have not been able to increase revenues adequately. Furthermore, they are the source of serious distortions in the allocation of productive resources. Comprehensive tax reform is advocated for all of the countries to give them the fiscal foundation to carry out their public sector obligations. Issued as: "An Examination of Public Sector Finances in Central America" (with Carlos R. Gutierrez), Development Discussion Paper No. 278, Harvard Institute for International Development, January, 1989. JEL Code(s): H50 Keywords: public sector, financing, Central America Download: qed_dp_72.pdf Close » "SALES TAX REFORM OPTIONS AND THE BTT: THE EVOLUTION OF SALES TAX REFORM IN CANADA" GLENN P. JENKINS Development Discussion Paper Number: 1987-2 More » SALES TAX REFORM OPTIONS AND THE BTT: THE EVOLUTION OF SALES TAX REFORM IN CANADA GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1987-2 Abstract: I see my function at this Conference as giving some background as to why the Department of Finance Tax Policy Group, and also the political decision-makers, ended up considering the Business Turnover Tax (BTT) as an option for replacement of the Manufacture´s Sales Tax (MST). There is one facile answer to that question; that is, they tried several other reforms first without success and the BTT was the next one that came up. But, the issue is more substantive than that, considering what are the real options for reform of the MST in Canada and given the restraints that we face in trying to deal with tax reform of this nature. As is well known, the MST is now celebrating its 62nd birthday in its present form. After it is reformed, we can move it over to the museum of fiscal relics and either looks back fondly or otherwise. JEL Code(s): H20 Keywords: sales tax reform, the BTT, Canada Download: qed_dp_71.pdf Close » "COST-EFFECTIVENESS OF AFTER-TAX FINANCING: FLOW-THROUGH SHARES IN CANADA" GLENN P. JENKINS Development Discussion Paper Number: 1987-1 More » COST-EFFECTIVENESS OF AFTER-TAX FINANCING: FLOW-THROUGH SHARES IN CANADA GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1987-1 Abstract: This paper evaluates the efficiency of flow-through shares as an after-tax financing instrument. This instrument was designed to assist non-taxable mining and petroleum companies in benefiting from various tax incentives given to these sectors. Efficiency is measured here as the ratio of the present value of the incremental loss in tax revenues incurred by the government, to increase in the present value of the tax benefits received by the corporations that issue flow-through shares. From this analysis, it is clear that the government could reduce its waste of tax revenues substantially through the design of a more efficient system of getting cash in the hands of non-taxable operating companies, in exchange for the companies giving up their tax deductions. The increased use of direct refundability for such tax deductions is an obvious alternative. There are indications from this study that a rate of direct tax refundability substantially lower than the normal value of these tax deductions to a fully-taxable firm would be more advantageous to most non-taxable firms than the use of flow-through shares. Issued as: "Cost Effectiveness of After-Tax Financing: Flow-Through Shares in Canada." Discussion Paper 1987, Economic Council of Canada, Ottawa. JEL Code(s): H21 Keywords: after-tax financing, flow-through shares, Canada Download: qed_dp_70.pdf Close » "An Assessment of the Financial and Economic Feasibly of a World Scale Fertilizer Manufacturing Facility in Argentina" GLENN P. JENKINS, FERNANDO FERNHOLZ Development Discussion Paper Number: 1986-2 More » An Assessment of the Financial and Economic Feasibly of a World Scale Fertilizer Manufacturing Facility in Argentina GLENN P. JENKINS HIID Harvard University FERNANDO FERNHOLZ HIID Harvard University Development Discussion Paper: 1986-2 Abstract: The main objective of this study is to conduct pre-feasibility study of a proposed fertilizer manufacturing plant in Argentina and analyzing both the economic and financial aspects of project. The results of this study reveal that the project appears to be marginal in economic as well as in financial terms. The market, operations and policy risks faced by this project are likely to threatened its long term survival. Prepared for: IECSA CA, Buenos Aires, Argentina JEL Code(s): H43 Keywords: pre-feasibility study, fertilizer manufacturing financial analysis, economic analysis, market risks Download: qed_dp_187.pdf Close » "TAXATION OF STATE-OWNED ENTERPRISES" GLENN P. JENKINS Development Discussion Paper Number: 1986-1 More » TAXATION OF STATE-OWNED ENTERPRISES GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1986-1 Abstract: This paper examines the differences between state owned enterprises and their private-sector counterparts in terms of the way they are affected by the tax systems. The relationship between state-owned enterprise finance and the impact of a tax system on these firms is also studied. A number of proposals are developed in the paper that would help to strengthen the ability of governments to impose and collect tax revenue from the firms they nominally own. Issued as: "Taxation of State-Owned Enterprises," Development Discussion Paper No. 225, Harvard Institute for International Development, April 1986. JEL Code(s): H25 Keywords: taxation, state-owned enterprises, private sector Download: qed_dp_69.pdf Close » "AN OUTLINE OF THE UNITED KINGDOM ADVANCED CORPORATE TAX" GLENN P. JENKINS Development Discussion Paper Number: 1985-5 More » AN OUTLINE OF THE UNITED KINGDOM ADVANCED CORPORATE TAX GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1985-5 Abstract: In order to alleviate part of this double taxation of distributed profits the classical system was replaced in 1973 by the ´imputation system´. This new system of taxation gives shareholders tax credits for tax paid by the corporation. These tax credits may be used by shareholders to offset their income tax liability on the dividends they receive. JEL Code(s): H25 Keywords: United Kingdom, Advanced Corporate Tax Download: qed_dp_68.pdf Close » "COSTS AND CONCEQUENCES OF THE NEW PROTECTIONISM: THE CASE OF CANADA´S CLOTHING SECTOR" GLENN P. JENKINS Development Discussion Paper Number: 1985-4 More » COSTS AND CONCEQUENCES OF THE NEW PROTECTIONISM: THE CASE OF CANADA´S CLOTHING SECTOR GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1985-4 Abstract: This paper analyzes the impact of the present tariff and bilateral quantitative restrictions for clothing on welfare of consumers and producers specifically, the resource cost of this policy for Canada as a whole, and the implications of these policies for the future development of the clothing sector. This sector was chosen because it is a relatively important industry in Canada and illustrates clearly how protection has generated both economic waste and perverse restructuring of the industry. Published as: "Costs and Consequences of the New Protectionism. The Case of Canada´s Clothing Sector", in Modern Developments in Public Finance: Essays in Honor of Arnold Harberger, edited by Michael J. Boskin (New York: Basil Blackwell Inc., 1987). JEL Code(s): F14 Keywords: clothing industry, protectionism, Canada Download: qed_dp_67.pdf Close » "FINANCING UNIVERSAL ACCESS IN THE TELEPHONE NETWORK" GLENN P. JENKINS, S. MALCOLM GILLIS, JIM LEITZEL Development Discussion Paper Number: 1985-3 More » FINANCING UNIVERSAL ACCESS IN THE TELEPHONE NETWORK GLENN P. JENKINS HIID, Harvard University. S. MALCOLM GILLIS Department of Economics, Duke University. JIM LEITZEL Department of Economics, Duke University. Development Discussion Paper: 1985-3 Abstract: This paper examines the issue of financing the social goal of universal access to the telephone network. There are many feasible methods of financing the subsidies involved. We show that alternative financing schemes differ in terms of their economic efficiency, equity, political attractiveness, and administrative feasibility. As a consequence, tradeoffs among these characteristics must be made in choosing a financial mechanism to achieve a given social goal; financing schemes appropriate in some circumstances may be inappropriate in others. Published as: "Financing Universal Access in the Telephone Network" (with M. Gillis and J. Leitzel), National Tax Journal, Vol. 39, No. 1, March 1986. JEL Code(s): H40 Keywords: telephone network, subsidies, financial methods Download: qed_dp_66.pdf Close » "THE IMPACT OF INFLATION ON CORPORATE TAXES AND THE CASH FLOWS OF BUSINESS" GLENN P. JENKINS Development Discussion Paper Number: 1985-2 More » THE IMPACT OF INFLATION ON CORPORATE TAXES AND THE CASH FLOWS OF BUSINESS GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1985-2 Abstract: The purpose of this paper is to identify and measure the effects of inflation on corporation income taxes and on the net cash flows of business. Five ways in which inflation alters corporate taxable income are identified. The paper begins by showing how the use of historical costs rather than the replacement costs of assets in the calculation of depreciation will cause taxable income to be overstated. Taxable income is also overstated because taxation rules require the use of the first-in first-out pricing rule for measuring the cost of goods sold from inventories. They also require the inclusion in taxable income of the full nominal value of interest earned even though during a period of inflation much of the nominal interest earned is simply compensation for the fall in the real value of financial assets. The exclusion of the loss in the real value of cash balances from deductible expenses causes taxable income to be further overstated. Partially offsetting these effects on taxable income is the provision for the full deduction of interest expense, nominal interest rates tend to increase by approximately the same number of percentage points to compensate for the fall in the real value of the principal outstanding. Hence, the amount of the nominal interest paid may increase dramatically even though the real cost of funds might not be appreciably changed. Published as: "The Impact of Inflation on Corporate Taxes and the Cash Flows of Business", Canadian Tax Journal, Vol. 33, No. 4, July-August 1985. JEL Code(s): H20 Keywords: inflation, corporate taxes, cash flow Download: qed_dp_65.pdf Close » "OPTIONS FOR DEALING WITH DECLINING INDUSTRIES" GLENN P. JENKINS Development Discussion Paper Number: 1985-1 More » OPTIONS FOR DEALING WITH DECLINING INDUSTRIES GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1985-1 Abstract: The Canadian government has tried almost every conceivable policy to assist declining firms, industries and regions. Such programs have included loans, grants, investment tax credits, special unemployment compensation, early retirement plans, employment tax credits and nationalization. The results have not been impressive. There is always a continuous movement of entrepreneurs, labour and capital to new opportunities and often when an industry is far removed from a major centre this decline has particular regional and employment implications. Policy options are required as much for addressing the social and political problems of declining communities and regions as for declining industries. There have been a number of studies that show that income losses imposed on individual workers, although in some cases not insignificant, appear almost trivial when compared with the government subsidies or higher costs imposed on Canadian consumers. Labour adjustment assistance, particularly in the form of lump-sum payments, has the ability to produce more rapid economical adjustment for declining industries. Published as: "Options for Dealing with Declining Industries", in Proceedings, National Economics Conference, March 22, 1985, Department of Finance, Ottawa, Canada. JEL Code(s): H30 Keywords: declining industries, policy options, Canada Download: qed_dp_64.pdf Close » "EVALUATION OF PERFORMANCE OF INDUSTRIAL PUBLIC ENTERPRISES: CRITERIA AND POLICIES" GLENN P. JENKINS, MOHAMED H. LAHOUEL Development Discussion Paper Number: 1984-4 More » EVALUATION OF PERFORMANCE OF INDUSTRIAL PUBLIC ENTERPRISES: CRITERIA AND POLICIES GLENN P. JENKINS HIID, Harvard University. MOHAMED H. LAHOUEL HIID, Harvard University. Development Discussion Paper: 1984-4 Abstract: The industrial public enterprise sector plays an important role in the economies of developing countries. It spans a whole variety of industries from petrochemicals to textiles. It has produced over 50 per cent of industrial output in countries such as Egypt, Somalia or the United Republic of Tanzania and over 25 per cent in India and Turkey. Its share in total manufacturing investment has been as high as 90 per cent in Egypt and 50 per cent in Mexico. Relatively vast resources are therefore made available to this sector so that a given country´s economic welfare is likely to be substantially affected by the nature and the size of the output that public enterprises generate out of these resources. It is thus important to be able to assess the net contribution of public enterprise operations in the country´s welfare and to ensure that they work towards maximizing benefits. A public enterprise is expected to fulfill many objectives: generate a financial surplus; help reduce unemployment; develop skills; and contribute to growth, technical progress and the correction of regional imbalances. The important issue that is addressed in this paper is how to evaluate public enterprise performance in view of the multiplicity of objectives thrust upon it. Published as: "Evaluation of Performance of Industrial Public Enterprises: Criteria and Policies" (with M.H. Lahouel), Industry and Development, No. 7, April 1983 JEL Code(s): H83 Keywords: public industrial enterprises, resources invested versus economic output, an evaluation Download: qed_dp_63.pdf Close » "RICE CONSUMPTION, SELF-SUFFICIENCY AND INCOME GROWTH IN PENNINSULAR MALAYSIA, 1972-1983" GLENN P. JENKINS, ANDREW KWOK-KONG LAI Development Discussion Paper Number: 1984-3 More » RICE CONSUMPTION, SELF-SUFFICIENCY AND INCOME GROWTH IN PENNINSULAR MALAYSIA, 1972-1983 GLENN P. JENKINS HIID, Harvard University. ANDREW KWOK-KONG LAI Department of Agriculture, Government of Malaysia. Development Discussion Paper: 1984-3 Abstract: The purpose of this paper is to study the impact of real income growth on the consumption of rice in Peninsular Malaysia from 1972 until 1983. A forecast of rice self-sufficiency is man-made for the years 1985- 1990. JEL Code(s): Q18 Keywords: rice consumption, self sufficiency, income growth, Malaysia Download: qed_dp_62.pdf Close » "THE CANADIAN FEDERAL SALES TAX: WHAT NEXT?" GLENN P. JENKINS Development Discussion Paper Number: 1984-2 More » THE CANADIAN FEDERAL SALES TAX: WHAT NEXT? GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1984-2 Abstract: Among industrialized countries, Canada is the last nation still using a manufacturers´ sales tax, although at least nine other countries have used tax intermittently since 1923. When it was introduced 61 years ago it was considered a controversial tax. Many of the complaints at that time have resurfaced in recent government papers, including the comprehensive Report of the Federal Sales Tax Review Committee (1983), chaired by Dr. Wolfe Goodman. With the hope of encouraging the research, in the balance of this paper I present some basic information on the role and burden of the Federal Sales Tax and discuss some proposals for reform. JEL Code(s): H20 Keywords: federal sales tax, reform, Canada Download: qed_dp_61.pdf Close » "BLUE GOLD: HYDRO- ELECTRIC RENT IN CANADA" GLENN P. JENKINS, RICHARD C. ZUKER Development Discussion Paper Number: 1984-1 More » BLUE GOLD: HYDRO- ELECTRIC RENT IN CANADA GLENN P. JENKINS HIID, Harvard University. RICHARD C. ZUKER Economic Council of Canada. Development Discussion Paper: 1984-1 Abstract: In this study, an attempt is made to develop estimates of the value of economic rent from production of hydro-electricity. These estimates are made for the year 1979, which is the latest period for which a comprehensive set of data was available at the time this work was undertaken. The estimates are developed for the hydro-electricity generated (or used) by electric utilities in four provinces: Quebec (including Churchill Falls), Ontario, Manitoba and British Columbia. These electric systems accounted for 93 percent of the hydro-electricity generated by utilities in Canada during 1979. Using the estimates developed for these four provinces, approximate values are derived for the rent arising from the hydro-electricity generated by utilities in the other provinces. Published as: "Blue Gold: Hydro-Electric Rent in Canada (with R. Zuker). Ottawa: Economic Council of Canada, Special Study Series, 1984. Excerpts reprinted in The Economics of Industrial Water Use, ed. Steven Renzetti, Edward Elgar Publishing, UK, 2000. JEL Code(s): Q48 Keywords: hydro-electric rent, electricity supply, Canada Download: qed_dp_60.pdf Close » "WORKER ADJUSTMENT POLICIES: AN ALTERNATIVE TO PROTECTIONISM" GLENN P. JENKINS, GRAHAM GLENDAY, JOHN C. EVANS Development Discussion Paper Number: 1982-2 More » WORKER ADJUSTMENT POLICIES: AN ALTERNATIVE TO PROTECTIONISM GLENN P. JENKINS HIID, Harvard University. GRAHAM GLENDAY York University, Canada JOHN C. EVANS York University, Canada Development Discussion Paper: 1982-2 Abstract: The issues which confront government in developed countries like Canada concerning the choice between trade or protection are related to concerns in three distinct, yet inter-connected areas, namely: international development, national industrial development, and political exigencies and repercussions. The theoretical economics literature, as well as most policy analysis, tends to approach each of these issues in a different manner and often tend to ignore the essential interrelationships among them. As a result, policies which provide an optimal, combined solution to all three policy concerns tend to be overlooked or dismissed. This appears to be the case with worker adjustment assistance. The purposes of this paper are to indicate the potential usefulness of properly designed worker adjustment policies, to define the measurement and empirical issues which must be addressed in designing specific programs, and to point out critical considerations regarding their implementation. Estimates of the government financial assistance required for worker adjustment assistance are provided for one region in Canada in order to illustrate the magnitudes involved. JEL Code(s): J21 Keywords: worker adjustment, adjustment policies, adjustment costs, Canada Download: qed_dp_59.pdf Close » "THE DEMAND FOR CONSUMER CREDIT: IT´S RESPONSE TO ECONOMIC CONDITIONS IN CANADA" GLENN P. JENKINS, MICHELINE MESCHER Development Discussion Paper Number: 1982-1 More » THE DEMAND FOR CONSUMER CREDIT: IT´S RESPONSE TO ECONOMIC CONDITIONS IN CANADA GLENN P. JENKINS HIID, Harvard University. MICHELINE MESCHER Department of Economics, University of Chicago Development Discussion Paper: 1982-1 Abstract: While previous analysis of the consumer credit market have allowed for a rationing of funds between potential borrowers by means of models reflecting the retail market for funds, this paper examines the consumer credit market from the perspective of the derived demand for funds by the financial institutions who supply consumer credit. It is found that the real cost of credit and the price of durable goods are the most important variables in determining the demand for consumer credit. The empirical results also indicate that an increase in the growth rate of real government debt held by the public will cause a crowding out effect on consumer credit of approximately 6% of the increase in the real value of the debt. JEL Code(s): G21 Keywords: consumer credit, demand for credit, Canada Download: qed_dp_58.pdf Close » "FORESTRY PROJECTS WITH FOREIGN PARTICIPATION: AN OVERVIEW, POLICY GUIDELINES AND APPRAISAL" GLENN P. JENKINS, S. MALCOLM GILLIS, IGNATIUS PEPRAH Development Discussion Paper Number: 1981-10 More » FORESTRY PROJECTS WITH FOREIGN PARTICIPATION: AN OVERVIEW, POLICY GUIDELINES AND APPRAISAL GLENN P. JENKINS HIID, Harvard University. S. MALCOLM GILLIS HIID, Harvard University. IGNATIUS PEPRAH Department of Economics, Harvard University. Development Discussion Paper: 1981-10 Abstract: The subject of this paper is forestry projects with foreign participation. We will be dealing with projects in both the resources side and the industrial regiment of the forestry sector. The paper is divided into two parts. Part I deals with the nature, benefits and sources of conflict of government-foreign private investor joint ventures in the forestry sector. The objective is to provide the project designer and appraiser with policy guidelines that would enable him to produce workable joint-venture investments in the forestry sector. Part II treats the financial and economic appraisal of such projects. It is important to note that much of the methodology or techniques used in appraising such projects would be the same as those used in the appraising projects implemented by governments or the private sector. Published as: "Forestry Projects with Foreign Participation: An Overview of Policy Guidelines and Appraisal" (with M. Gillis), United Nations: Food and Agriculture Organizations 1981. Prepared in conjunction with FAO/SIDA Seminar on Planning Forestry Development, Santiago, Chile. JEL Code(s): Q27 Keywords: forestry, foreign participation, policy guidelines Download: qed_dp_57.pdf Close » "TAX ACCOUNTING FOR INFLATION AND DEVALUATION: THE CASE OF INDONESIA" GLENN P. JENKINS Development Discussion Paper Number: 1981-9 More » TAX ACCOUNTING FOR INFLATION AND DEVALUATION: THE CASE OF INDONESIA GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1981-9 Abstract: The adjustment required to correct "generally accepted accounting principles" for the impact of inflation or devaluation, has been the subject of a protracted debate in accounting and taxation literature. As an outcome of that discussion, it is now generally recognized that inflation affects the estimation of income and taxes using conventional accounting procedures in at least five different ways. First, depreciation expenses or capital cost allowances become underestimated because they are usually calculated as a fraction of the historical cost of fixed assets, not their current inflated values. Second, the cost of goods sold tend to be underestimated, and income over-estimated, if goods used from inventories are valued on a first in first out basis rather than at their current (adjusted for inflation) costs. Third, nominal interest rates tend to rise due to the compensation required by lenders for the decrease in the real value of the principal outstanding due to inflation. This tends to create a significant immediate increase in the cash outflow of the business relative to the increase in cash inflow due to inflation. JEL Code(s): H20 Keywords: inflation, tax accounting, Indonesia Download: qed_dp_56.pdf Close » "INFLATION AND TAXATION" GLENN P. JENKINS, N. HEDI LAHOUEL Development Discussion Paper Number: 1981-8 More » INFLATION AND TAXATION GLENN P. JENKINS HIID, Harvard University N. HEDI LAHOUEL Department of Economics, Harvard University. Development Discussion Paper: 1981-8 Abstract: Inflation induces distortions in the economy, some of which are related to taxation while others would persist even if tax systems were made fully neutral with respect to rate of inflation. It is well known for instance that inflation induces individuals to hold less real cash balances and to invest relatively more in assets that maintain their purchasing power than they would in a non- inflationary world. This paper does not deal with this kind of distortion. It focuses on effects of inflation on the tax system. This paper analyzes these inflation induced tax distortions and discusses the methods that could be used to make the appropriate corrections for inflation. Section II focuses on the personal income tax; Section III treats the effects of inflation on the taxation of business income. Issued as: "Inflation and Taxation" (with NH.Lahouel). Paper presented to CIAT Conference on Tax Policy and Administration, Caracas, Venezuela, February 24-26, 1981. JEL Code(s): H20 Keywords: inflation, taxation, personal taxation, corporate taxation Download: qed_dp_55.pdf Close » "AN INTERNATIONAL COMPARATIVE ANALYSIS OF THE TAXATION OF THE STEEL INDUSTRY" GLENN P. JENKINS Development Discussion Paper Number: 1981-7 More » AN INTERNATIONAL COMPARATIVE ANALYSIS OF THE TAXATION OF THE STEEL INDUSTRY GLENN P. JENKINS HIID, Harvard University Development Discussion Paper: 1981-7 Abstract: The objective of this study is to provide an overview of the present state of the steel industry in a number of countries in the developed world and compare the incentives provided to corporations to undertake investments that are created by the tax systems in these countries. In all, the tax systems in six countries are examined in some detail. They are: Canada, France, Japan, United Kingdom, United States and West Germany. To undertake this evaluation a computerized model was used to integrate the various provisions of the tax system with the particular characteristics of the investments required to expand steelmaking capacity. This model allowed us to evaluate the impact of the various tax provisions on the overall profitability of the project in terms of their impact on the net present value of the project. Issued as: "An International Comparative Analysis of the Taxation of the Steel Industry". Report prepared for the United States Treasury, Office of International Tax Affairs, August 1981. JEL Code(s): H87 Keywords: steel industry, international competitiveness, taxation Download: qed_dp_54.pdf Close » "LABOUR ADJUSTMENT: AN OVERVIEW OF PROBLEMS AND POLICIES" GLENN P. JENKINS, GRAHAM GLENDAY Development Discussion Paper Number: 1981-6 More » LABOUR ADJUSTMENT: AN OVERVIEW OF PROBLEMS AND POLICIES GLENN P. JENKINS HIID, Harvard University. GRAHAM GLENDAY York University, Canada. Development Discussion Paper: 1981-6 Abstract: This paper provides an overview of labour adjustments situations in Canada, the incentives to adjust from the perspective of the workers and the costs and benefits to the economy of different labour adjustment problems and policies. Conceptual models and estimation procedures for arriving at the costs and benefits of various adjustment programs are discussed. Where possible actual estimates are presented or referenced to give the dimensions of adjustment problems and potential gains from adjustment policies. Issued as: "Labour Adjustment: An Overview of Problems and Policies" (with G. Glenday). Report prepared for the Task Force on Labour Market Development, Canada Employment and Immigration Commission, Ottawa, June 1981. JEL Code(s): J21 Keywords: labor adjustment, labor policies, Canada Download: qed_dp_53.pdf Close » "TAX INCENTIVES, REVENUE TRANSFERS, AND THE TAXATION OF INCOME FROM FOREIGN INVESTMENT" GLENN P. JENKINS, ANTAL DEUTSCH Development Discussion Paper Number: 1981-5 More » TAX INCENTIVES, REVENUE TRANSFERS, AND THE TAXATION OF INCOME FROM FOREIGN INVESTMENT GLENN P. JENKINS HIID, Harvard University ANTAL DEUTSCH McGill University. Development Discussion Paper: 1981-5 Abstract: The purpose of this paper is to carry out a series of empirical estimates of the relative impact of a series of changes in the Canadian taxation of income generated by foreign-owned investments on: 1) The change in Canadian tax revenues 2) The tax transfer to or from the U.S. Treasury, and 3) The change in incentive for U.S. residents to invest in Canada. This analysis is followed by a short review of recent changes in the U.S. treatment of taxes paid to host countries by the foreign branches and subsidiaries of U.S. companies. Published as: " Tax Incentives, Revenue Transfers and the Taxation of income from Foreign Investment" ( with A. Deutsch), in Tax Policy Options in the 1980s, edited by J. Whalley and W. Thirsk, Canadian Tax Foundation, Canadian Tax Paper Series, Toronto, 1981. JEL Code(s): H87 Keywords: tax incentives, foreign investment, Canada Download: qed_dp_52.pdf Close » "THE EMPLOYMENT EXPERIENCE OF THE UNEMPLOYED" GLENN P. JENKINS, GRAHAM GLENDAY Development Discussion Paper Number: 1981-4 More » THE EMPLOYMENT EXPERIENCE OF THE UNEMPLOYED GLENN P. JENKINS HIID, Harvard University GRAHAM GLENDAY York University, Canada. Development Discussion Paper: 1981-4 Abstract: This study examines the employment experience of workers in Canada who were unemployed at some point during the period 1972 through 1979. The employment-unemployment experience of workers over this eight-year period was derived from a data base constructed from the one-in-ten sample of the administrative records kept by the Department of Employment and Immigration concerning Unemployment Insurance (UI) claims, Records of Employment and certain income tax records of individuals in Canada. From this data a history of the employment experience of individuals during the time they were in labour force is constructed. Issued as: "The Employment Experience of the Unemployed" (with G. Glenday). Report prepared for the Task Force on Labour Market Development, Canada Employment and Immigration Commission, Ottawa, Technical Study No. 13, June 1981. JEL Code(s): J21 Keywords: employment, unemployment experiences, Canada Download: qed_dp_51.pdf Close » "THE UNEMPLOYMENT EXPERIENCE OF INDIVIDUALS" GLENN P. JENKINS, GRAHAM GLENDAY Development Discussion Paper Number: 1981-3 More » THE UNEMPLOYMENT EXPERIENCE OF INDIVIDUALS GLENN P. JENKINS HIID, Harvard University GRAHAM GLENDAY York University, Canada. Development Discussion Paper: 1981-3 Abstract: In this study we examine the unemployment experience of workers who became unemployed during the period 1972 through 1979 in the 19 regions across the country, a group that represents about 58 per cent of the Canadian labour force. The employment/unemployment experience of workers over this eight-year period was derived from a data base constructed from the one-in ten sample of the administrative records kept by the Department of Employment and Immigration concerning Unemployment Insurance (UI) claims, Records of Employment and certain income tax records of individuals in Canada. Direct estimates were made of variables such as number of unemployment spells, the duration of these spells, the proportion of these spells covered by UI benefits and the unemployment rate experienced by individuals over the study period. We were then able to compare the structure and relative hardship of unemployment in a region, as indicated by the results, with the view gained by comparing the overall unemployment rates of various regions. Issued as: "The Unemployment Experience of Individuals" (with G. Glenday). Report prepared for the Task Force on Labour Market Development, Canada Employment and Immigration Commission, Ottawa, May 1981. JEL Code(s): J21 Keywords: unemployment experience, regional unemployment, labor markets, Canada Download: qed_dp_50.pdf Close » "PATTERNS OF DURATION OF EMPLOYMENT AND UNEMPLOYMENT" GLENN P. JENKINS, GRAHAM GLENDAY Development Discussion Paper Number: 1981-2 More » PATTERNS OF DURATION OF EMPLOYMENT AND UNEMPLOYMENT GLENN P. JENKINS HIID, Harvard University GRAHAM GLENDAY York University, Canada. Development Discussion Paper: 1981-2 Abstract: This study examines the durations of unemployment and employment for those in Canada who experience some unemployment between 1972 and 1979. This analysis was carried out using the UIC-ROE data base developed from the administrative records of the Unemployment Insurance Commission. This data base covers a time period sufficiently long to allow this analysis to be made with observed rather than estimated durations of employment/unemployment spells for the first time in Canada. Issued as: "Patterns in the Duration of Unemployment and Employment (with G. Glenday). Report prepared for the Task Force on Labour Market Development, Canada Employment and Immigration Commission, Ottawa, Technical Study No. 12 August 1981. JEL Code(s): J21 Keywords: employment, unemployment, Canada Download: qed_dp_49.pdf Close » "THE TAXATION OF FOREIGN INVESTMENT INCOME IN CANADA, THE UNITED STATES AND MEXICO" GLENN P. JENKINS, GRAHAM GLENDAY, DEVENDRANAUTH MISI Development Discussion Paper Number: 1981-1 More » THE TAXATION OF FOREIGN INVESTMENT INCOME IN CANADA, THE UNITED STATES AND MEXICO GLENN P. JENKINS HIID, Harvard University. GRAHAM GLENDAY York University, Canada. DEVENDRANAUTH MISI York University, Canada. Development Discussion Paper: 1981-1 Abstract: This article provides an overview of the taxation of foreign source income in Canada, the United States and Mexico and provides some empirical estimates as an example of the relative impact of a series of changes in Canadian taxation of foreign source income on (a) the change in the Canadian tax revenues and (b) the change in the incentive for U.S. residents to invest in Canada. Published as: "The Taxation of Foreign Investment Income in Canada, the United States, and Mexico" (with D. Misir and G. Glenday), Law and Contemporary Problems, Vol. 44, No. 3, Summer 1981. JEL Code(s): H87 Keywords: foreign investment, North America, income Download: qed_dp_48.pdf Close » "AN EVALUATION OF THE IMPACT OF ALTERNATIVE TAX POLICIES ON THE PROFITABILITY OF INVESTMENTS IN WHEAT, CORN AND SOYBEAN PRODUCTION: AN INTERNATIONAL COMPARISON" GLENN P. JENKINS Development Discussion Paper Number: 1980-13 More » AN EVALUATION OF THE IMPACT OF ALTERNATIVE TAX POLICIES ON THE PROFITABILITY OF INVESTMENTS IN WHEAT, CORN AND SOYBEAN PRODUCTION: AN INTERNATIONAL COMPARISON GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1980-13 Abstract: The objective of this study is to analyze the relative impact that the tax policies of several important agriculture producing countries have on the profitability of investment in this sector. Agricultural products constitute some of the most widely traded commodities in existence today and compete internationally in organized competitive markets. At the same time, the agriculture sector in most countries is subject to a wide range of taxes, subsidies and regulations that influence both production costs and the prices producers need to receive before they are willing to sell abroad. In this study three of the most important agricultural commodities produced by the U.S. are compared with its treatment in a number of the principal countries producing agriculture goods, namely, Argentina, Australia, Brazil and Canada. Issued as: "An Evaluation of the Impact of Alternative Tax Policies on the Profitability of Investments in Wheat, Corn, and Soybean Production: An International Comparison". Report prepared for the United States Treasury, Office of International Tax Affairs, August 1981. JEL Code(s): H25 Keywords: agriculture, tax policies, profitability of investments Download: qed_dp_47.pdf Close » "TAXATION AND THE DEVELOPMENT OF THE MINING SECTOR IN DEVELOPING COUNTRIES" ROBERT CONRAD, MALCOLM GILLIS, GLENN P. JENKINS Development Discussion Paper Number: 1980-12 More » TAXATION AND THE DEVELOPMENT OF THE MINING SECTOR IN DEVELOPING COUNTRIES ROBERT CONRAD Department of Economics, Duke University. MALCOLM GILLIS HIID, Harvard University. GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1980-12 Abstract: A theoretical and empirical examination is made of the alternative mineral tax structures available to governments in developing countries. It is carried out in a context where some foreign investment is required for the development of the resource base. This project has three primary objectives. First, we wish to develop a more comprehensive applied economic model of the mine where the various states of the mining cycle are developed. Secondly, an empirical assessment will be made of a wide range of taxation and regulatory structures through the simulation of the above economic model in order to evaluate the likely investment, production and resource allocation effects of the various mineral taxes and regulations. Thirdly, a set of normative guideless will be developed for governments to use in the design of their tax policies. These guidelines will be operational in nature and will differentiate between the different categories of minerals which yield divergent economic outcomes as a result of these taxes and regulations. JEL Code(s): Q38 Keywords: mining, tax structures, tax analysis Download: qed_dp_46.pdf Close » "TOWARDS A THEORY OF PUBLIC ENTERPRISE FINANACE" MALCOLM GILLIS, GLENN P. JENKINS, DONALD LESSARD Development Discussion Paper Number: 1980-11 More » TOWARDS A THEORY OF PUBLIC ENTERPRISE FINANACE MALCOLM GILLIS HIID, Harvard University. GLENN P. JENKINS HIID, Harvard University. DONALD LESSARD Sloan School of Business, MIT. Development Discussion Paper: 1980-11 Abstract: The purpose of the proposed research is to develop an approach to public enterprise finance that provides insights into the financial linkages of public enterprises with their parent governments and capital markets, the financial behavior of the public enterprises themselves, and most importantly, the implications of these linkages and behavioral patterns for the financing, investment and operating decisions of the state-owned enterprises (SOEs). The primary focus of the study will be on "market oriented" public enterprises, rather than on those that carry out activities normally undertaken by government departments. JEL Code(s): H83 Keywords: public enterprise finance, operations, investments, marketing Download: qed_dp_45.pdf Close » "GUIDELINES FOR DESIGN OF CONTRACT OF WORK FOR COMPANIES OPERATING IN FISCAL RESERVE AREAS OF BOLIVIA" GLENN P. JENKINS Development Discussion Paper Number: 1980-10 More » GUIDELINES FOR DESIGN OF CONTRACT OF WORK FOR COMPANIES OPERATING IN FISCAL RESERVE AREAS OF BOLIVIA GLENN P. JENKINS HIID, Harvard University Development Discussion Paper: 1980-10 Abstract: The provisions for obtaining a mining concession in the fiscal reserve areas in Bolivia are set out in the Supreme Decree #11000 of 1972. The same provisions apply to both domestic and foreign companies and are very general in nature. As stated in the decree they are only designed to lay down minimum conditions for any subsequent contract to be signed between the government and a mining company. This paper serves to build on this framework to arrive at a more complete set of guidelines for designing contracts of work in the mining sectors. Issued as: "Guidelines for Design of Contract of Work for Companies Operating in the Fiscal Reserve Areas of Bolivia". Paper prepared for the World Bank, December 1980. JEL Code(s): H25 Keywords: mining contracts, guidelines, Bolivia Download: qed_dp_44.pdf Close » "ESTIMATION OF PRODUCTION COST FOR TIN IN THE MEDIUM MINES OF BOLIVIA" GLENN P. JENKINS Development Discussion Paper Number: 1980-9 More » ESTIMATION OF PRODUCTION COST FOR TIN IN THE MEDIUM MINES OF BOLIVIA GLENN P. JENKINS HIID, Harvard University Development Discussion Paper: 1980-9 Abstract: This analysis points out two important modifications that could be made to the present tax system. First, mine costs could be separated from non-mine costs. The non-mine costs for tin are essentially the smelting charges of ENAF plus a much less significant level of charges. The presumptive cost for the basis of taxation should be equal to the standard mining costs plus the transportation and insurance part of standard non-mining costs plus the actual smelting charges levied by ENAF. Secondly, presumptive costs for taxation purposes should be indexed to the charges in an index of Bolivian mining costs. Issued as: "Estimation of Production Costs for Tin in the Medium Mines of Bolivia". Paper prepared for the World Bank, December 1980. JEL Code(s): H25 Keywords: mining costs, mineral production costs, tin, Bolivia Download: qed_dp_43.pdf Close » "THE SOURCES AND DETERMINANTS OF INCOME OF SINGLE CROPPING PADI FARMERS IN MALAYSIA" GLENN P. JENKINS, JONATHAN HAUGHTON Development Discussion Paper Number: 1980-8 More » THE SOURCES AND DETERMINANTS OF INCOME OF SINGLE CROPPING PADI FARMERS IN MALAYSIA GLENN P. JENKINS HIID, Harvard University. JONATHAN HAUGHTON Harvard University. Development Discussion Paper: 1980-8 Abstract: Despite the belief that single-cropping padi farmers constitute one of the very poorest groups in Peninsular Malaysia, little is known in detail about the level and sources of income of this group, or about the determinants of this income. Such knowledge is of considerable practical importance, for in its absence it is impossible to gauge the effect on this group of government policies, such as maintaining a high domestic price for rice, or providing new irrigation facilities. Furthermore, in designing a strategy aimed at reducing severe absolute poverty and at providing "basic needs" for everyone it is helpful to know what the social and demographic characteristics of the poor are and how their position could be bettered. With such consideration in mind we have undertaken the analysis of a set of surveys conducted by the Ministry of Agriculture which collected information on about 2700 households involved in single-cropping of rice. All the households surveyed were in areas where small-scale irrigation projects could be undertaken and the survey was undertaken with the immediate aim of providing information which would help evaluate the desirability of investing in such a project in the various areas examined. JEL Code(s): Q12 Keywords: farm income, rice farming, Malaysia Download: qed_dp_42.pdf Close » "QUOTA CHARGES, PRICE CHANGES AND ADMINISTRATION OF THE CANADIAN BILATERAL CLOTHING QUOTAS IN HONG KONG AND TAIWAN" GLENN P. JENKINS Development Discussion Paper Number: 1980-7 More » QUOTA CHARGES, PRICE CHANGES AND ADMINISTRATION OF THE CANADIAN BILATERAL CLOTHING QUOTAS IN HONG KONG AND TAIWAN GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1980-7 Abstract: Through interviews in Hong Kong a number of questions were asked on how the bilateral quotas agreement with Canada has been administered and its impact on the export clothing market. The areas discussed were as follows: (a) procedures for acquisition of quotas; (b) regulations governing the transfer of quotas; (c) the shortcomings of the current quota system from the Hong Kong exporters point of view; (d) the percentage of people holding quota who manufacture and who do not manufacture; (e) the effect of a bilateral quota system on price competition in the Hong Kong export market; (f) the impact on FOB prices as seen by the exporter; (g) the effect of the quota system on the structure of the textile and clothing industries; and (h) the impact of the quotas on the quality or price range of merchandise sold. The following is a summary of the interviews which were made with manufactures, traders and government officials in Hong Kong concerning the operation and effects of the quotas imposed on the export of clothing to Canada. JEL Code(s): F14 Keywords: quota agreement, Hong Kong, Canada, operation effects Download: qed_dp_41.pdf Close » "DEVELOPMENT OF INDICES OF MINING AND NON-MINING COSTS FOR BOLIVIA" GLENN P. JENKINS Development Discussion Paper Number: 1980-6 More » DEVELOPMENT OF INDICES OF MINING AND NON-MINING COSTS FOR BOLIVIA GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1980-6 Abstract: A Bolivian Mining cost index is constructed by combining the prices of the key commodities and weighting them according to their impact on the cost structure of the sector. Such a mining cost index could be estimated quarterly semi-annually, or annually according to the availability of the exogenously provided prices of the key inputs. This index of the Bolivian mining costs could then be used to adjust periodically the standard mining costs by mineral that is being used as the basis for estimating pre-sumptive costs for taxation purposes. Issued as: "Development of Indices of Mining and Non- Mining Costs for Taxation of Natural Resources in Bolivia". Paper prepared for the World Bank, December 1980. JEL Code(s): H25 Keywords: mining costs, pre-sumptive taxation, Bolivia Download: qed_dp_40.pdf Close » "AN OVERVIEW OF ISSUES RELATED TO EMPLOYMENT POLICY IN CANADA" GLENN P. JENKINS, GRAHAM GLENDAY Development Discussion Paper Number: 1980-5 More » AN OVERVIEW OF ISSUES RELATED TO EMPLOYMENT POLICY IN CANADA GLENN P. JENKINS HIID, Harvard University. GRAHAM GLENDAY Department of Economics, York University. Development Discussion Paper: 1980-5 Abstract: While employment policy in Canada has on specific occasions undertaken varied tasks, three principal objectives have consistently been part of the Canadian Government´s policy over the past three decades. First, there has been a commitment to maintaining a low rate of unemployment. Second, there has been a desire to attain a high degree of interpersonal income equity. Third, the preservation of the historical pattern of population across regions within Canada has been an implicit or explicit goal. This paper explores the implications of these policies for the performance of the Canadian labour market. JEL Code(s): J08 Keywords: employment policy, objectives implications, Canada Download: qed_dp_39.pdf Close » "WORKER ADJUSTMENT TO LIBERALIZED TRADE: COSTS AND ASSISTANCE POLICIES" GLENN P. JENKINS, JOHN C. EVANS, GRAHAM GLENDAY Development Discussion Paper Number: 1980-4 More » WORKER ADJUSTMENT TO LIBERALIZED TRADE: COSTS AND ASSISTANCE POLICIES GLENN P. JENKINS HIID, Harvard University. JOHN C. EVANS Department of Economics, York University. GRAHAM GLENDAY Department of Economics, York University. Development Discussion Paper: 1980-4 Abstract: The issues which confront governments concerning the choice between trade or protection are related to three distinct yet inter- connected policy problems, namely: international trade policy, national industrial development policy, and political platform policy. The theoretical economics literature as well as most policy analysis tends to approach each of these problems in a slightly different manner. As a result policies which might provide partial solutions to all three problems tend to be overlooked or dismissed because they do not provide a complete answer to any single one. Worker adjustment assistance policies are of this type. The purposes of this paper are to indicate the potential usefulness of properly designed worker adjustment policies, to define the measurement and empirical issues which much be addressed in designing specific programmes, and to point out critical considerations regarding their implementation. Published as: "Worker Adjustment to Liberalized Trade: Costs and Assistance Policies", Harvard Institute for International Development, Development Discussion Paper 98 October 1980. JEL Code(s): F16 Keywords: liberalized trade, worker adjustment, assistance policies Download: qed_dp_38.pdf Close » "INVESTMENT POLICY IN MINING: ISSUES AND ANALYSIS" GLENN P. JENKINS, RALPH E. BEALS, ULRICH PETERSEN, S. MALCOLM GILLIS Development Discussion Paper Number: 1980-3 More » INVESTMENT POLICY IN MINING: ISSUES AND ANALYSIS GLENN P. JENKINS HIID, Harvard University. RALPH E. BEALS Amherst College, USA. ULRICH PETERSEN Harvard University. S. MALCOLM GILLIS HIID, Harvard University,MIT Development Discussion Paper: 1980-3 Abstract: In this chapter a method for evaluation of social benefits or costs external to mining operations is outlined. Two alternative cases are considered. First, the problem of evaluating community infrastructure is discussed in the context of a mine to be developed in a relatively remote area where, prior to the mining project, there was very little or no habitation. Then, second, mine related infrastructure improvement in a previously existing community is evaluated. In this case, it is usual that some new labor must be attracted to the mining community, although a significant share of the labor force may be already in local residence before the mine is developed. A substantial number of people in the community will be able to use the community infrastructure provided by the mine even though they may not be employed by the mine. Published as: : "Investment Policy: Issues and Analysis" (with M. Gillis, R Beals and U. Petersen), Ch. 8 in M. Gillis and R Beals Tax and Investment Policies for Hard Minerals: Public and Multinational Enterprises in Indonesia, Ballinger Publishing Company, Cambridge, Mass., 1980. JEL Code(s): F21 Keywords: mine investments, community issues Download: qed_dp_37.pdf Close » "THE GENERAL STRUCTURE OF INDONESIAN MINING TAXATION" GLENN P. JENKINS, RALPH E. BEALS, S. MALCOLM GILLIS Development Discussion Paper Number: 1980-2 More » THE GENERAL STRUCTURE OF INDONESIAN MINING TAXATION GLENN P. JENKINS HIID, Harvard University. RALPH E. BEALS Amherst College, USA. S. MALCOLM GILLIS HIID, Harvard University. Development Discussion Paper: 1980-2 Abstract: The primary purpose of this chapter is to identify and analyze some important issues associated with the effects that taxes may have on investment and processing decisions within the mining industry of Indonesia. Such an undertaking includes a discussion of the nature of the various taxes that apply generally to the mining industry and a basic understanding of their relative importance. Published as: General Structure of Indonesian Mining Taxation (with M. Gillis and R. Beals), Ch. 2 in M. Gillis and R. Beals, Tax and Investment Policies for Hard Minerals: Public and Multinational Enterprises in Indonesia, Ballinger Publishing Company, Cambridge, Massachusetts, 1980. JEL Code(s): H25 Keywords: mining, mineral taxation, Indonesia Download: qed_dp_36.pdf Close » "THE COST OF U.S. DIRECT FOREIGN INVESTMENT" GLENN P. JENKINS, JOHN C. EVANS Development Discussion Paper Number: 1980-1 More » THE COST OF U.S. DIRECT FOREIGN INVESTMENT GLENN P. JENKINS HIID, Harvard University. JOHN C. EVANS Department of Economics, York University, Canada. Development Discussion Paper: 1980-1 Abstract: This paper focuses narrowly on developing a set of estimates of the cost in terms of the financial real rate of return the Canadian economy has paid to the U.S. residents who have made direct investments in Canada. These estimates will then be compared with corresponding real net-of-tax private rates of return generated by capital in the Canadian industrial sectors to find out if there is significant difference between the net return received by U.S. as compared to Canadian residents who have invested in Canada. Issued as: "The Cost of U.S. Direct Investment" (with J.C.Evans) Development Discussion Paper No. 104, Harvard Institute for International Development, November 1980. JEL Code(s): F21 Keywords: direct foreign investment, cost of foreign investment, Canada Download: qed_dp_35.pdf Close » "PRINCIPLES OF PERFORMANCE EVALUATION FOR PUBLIC SECTOR ENTERPISES" GLENN P. JENKINS Development Discussion Paper Number: 1979-1 More » PRINCIPLES OF PERFORMANCE EVALUATION FOR PUBLIC SECTOR ENTERPISES GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1979-1 Abstract: The purpose of this paper is to outline an approach to the evaluation of public sector enterprise performance that attempts to integrate aspects of financial, economic and social objectives that these organizations often strive to attain. Published as: "Principles of Performance for the Public Sector Enterprises", Development Forum, Malaysian Center for Development Studies, June 1979. JEL Code(s): H11, H43 Keywords: performance evaluation, public enterprises Download: qed_dp_34.pdf Close » "A Conceptual Framework for the Economic Evaluation of Industrial Projects " CHUN-YAN KUO Development Discussion Paper Number: 1978-9 More » A Conceptual Framework for the Economic Evaluation of Industrial Projects CHUN-YAN KUO Department of Regional Expansion, Canada Development Discussion Paper: 1978-9 Abstract: The paper presents a theoretical framework for the appraisal of industrial projects. The analysis begins with the commercial evaluation followed by the economic evaluation from the national point of view. Notes are also made regarding indirect effects, the impact of the project on a town and other infrastructure, and the magnitude of direct assistance offered by governments. Published at: Economic Essays, National Taiwan University, November 1978. JEL Code(s): D61, H43 Keywords: externalities, social discount rate, exchange rate, economic evaluation, townsite, infrastructure, assistance Download: qed_dp_175.pdf Close » "INFLATION AND COST-BENEFIT ANALYSIS" GLENN P. JENKINS Development Discussion Paper Number: 1978-8 More » INFLATION AND COST-BENEFIT ANALYSIS GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1978-8 Abstract: One of the most frequent errors made in the preparation of investment project evaluations arises out of the improper accounting for the impact of inflation on the financial and economic performance of a potential project. In this case of commercial projects it is not uncommon to find the returns to the owner of the project (either private sector, government, or public enterprise) underestimated or overestimated by 50 percent or more simply as a result of the use of incorrect procedures in accounting for expected inflation. Similarly, in economic appraisals of projects, economists usually have ignored the financing and liquidity constraints which inflation imposes on the investment and operation of projects even when the realized rate of inflation is equal to the rate anticipated. Issued as: "Inflation and Cost-Benefit Analysis", Development Discussion Paper No. 45, Harvard Institute for International Development, September 1978. JEL Code(s): H43 Keywords: Cost-Benefit Analysis, Inflation Download: qed_dp_33.pdf Close » "ADAPTATION OF SYSTEM EXPANSION TO MARGINAL COST BASED RATES USING A LOAD SIMULATION MODEL" GLENN P. JENKINS, JOHN C. EVANS Development Discussion Paper Number: 1978-7 More » ADAPTATION OF SYSTEM EXPANSION TO MARGINAL COST BASED RATES USING A LOAD SIMULATION MODEL GLENN P. JENKINS HIID, Harvard University. JOHN C. EVANS Department of Economics, York University. Development Discussion Paper: 1978-7 Abstract: Changes in the pricing of electrical energy in Canada to encourage a more efficient use of the country´s resources will have an impact on both electric utilities and economy in general. The purpose of this paper is to outline a framework within which these impacts can be studied and evaluated. The following points will receive consideration: (a) The reasons why the present rate structure encourages an inefficient use of resources, (b) The role of a load simulation model in the planning of system expansion, (c) The important characteristics of the load simulation model we have developed, and (d) The integration of a utility´s planning with a consistent cost/benefit evaluation of alternative pricing policies. The evaluation procedure is discussed from the points of view of both the utility and the public. Issued as: "Adaptation of System Expansion to Marginal Cost Based Rates Using a Load Simulation Model" (with John C. Evans), Conference Volume on Marginal Cost and Pricing of Electrical Energy, Montreal, Canada, May 1978, pp. 276-292. JEL Code(s): Q41 Keywords: Electricity demand simulation, electricity pricing Download: qed_dp_32.pdf Close » "A REVIEW OF THE METHODOLOGY FOR SOCIAL COST-BENEFIT ANALYSIS AS PROPOSED BY THE WORLD BANK" GLENN P. JENKINS Development Discussion Paper Number: 1978-6 More » A REVIEW OF THE METHODOLOGY FOR SOCIAL COST-BENEFIT ANALYSIS AS PROPOSED BY THE WORLD BANK GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1978-6 Abstract: In this review of the proposed procedures for social cost benefit analysis I have taken as the principal references two recent World Bank publications on this subject, L. Squire and Herman G. van der Tak, Economic Analysis of Projects, The Johns´ Hopkins University Press, 1975; and Colin Bruce, "Social as Cost Benefit Analysis: A Guide For Country and Project Economists To the Derivation and Application of Economic and Social Accounting Prices, World Bank Staff Working Paper No. 239 August, 1976. To obtain a clearer impression of how this methodology is to be applied I have referred to a World Bank Coordinated study Professor Michael Veitch, "National Parameters for Project Approval in Malaysia", and "The Opportunity Cost of Labour (in Peninsular Malaysia) Economic Planning Unit Prime Minister´s Department, Government of Malaysia, September, 1977, when a theoretical issue has not been clear in the above manuscripts I have referred to the book by IMD. Little and J.A. Mirrlees, Project Appraisal and Planning for Developing Countries, Heinemann Educational Books, London, 1974. As all the World Bank documents are very explicit in giving credit to the Little Mirrlees as providing the theoretical foundation for their applied methodology. JEL Code(s): H43 Keywords: cost-benefit analysis, World Bank, Malaysia Download: qed_dp_31.pdf Close » "AN OPERATIONAL APPROACH TO THE PERFORMANCE EVALUATION OF PUBLIC SECTOR ENTERPRISES" GLENN P. JENKINS Development Discussion Paper Number: 1978-5 More » AN OPERATIONAL APPROACH TO THE PERFORMANCE EVALUATION OF PUBLIC SECTOR ENTERPRISES GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1978-5 Abstract: Performance evaluation of public sector enterprises is an activity which if we were to ask what it should incorporate, we would likely compile a long list of issues for investigation. A selected number of these would probably cover areas such as: financial performance, corporate planning, business control, employment practices, consistency between activities of enterprise and social goals of government policy, contribution of enterprise to economic growth, enterprise activity and preservation of environment, consistency between enterprise activity and political objectives, and enterprise activities and their long term impact on the sociological well being of the community. Yet when one is faced with the challenge of what can be done within governmental organization to develop a process for undertaking constructive evaluations of such enterprises it becomes imperative to focus our efforts on a manageably small number of aspects of the problem. Published as: "An Operational Approach to the Performance Evaluation of Public Sector Enterprises", Annals of Public and Cooperative Economy, Vol. 50, No. 2, April- June 1979. JEL Code(s): H11 Keywords: public sector enterprises, performance evaluations Download: qed_dp_30.pdf Close » "TRADE ADJUSTMENT ASSISTANCE: THE COSTS OF ADJUSTMENT AND POLICY PROPOSALS" GLENN P. JENKINS, GRAHAM GLENDAY, JOHN C. EVANS, CLAUDE MONTMARQUETTE Development Discussion Paper Number: 1978-4 More » TRADE ADJUSTMENT ASSISTANCE: THE COSTS OF ADJUSTMENT AND POLICY PROPOSALS GLENN P. JENKINS HIID, Harvard University. GRAHAM GLENDAY York University, Canada. JOHN C. EVANS York University, Canada. CLAUDE MONTMARQUETTE University of Montreal, Canada. Development Discussion Paper: 1978-4 Abstract: This study concentrates on the adjustment costs of laying off workers from firm which are forced to reduce production and employment. Both the private income losses to the displaced workers and the cost to the economy of labour displacement are examined. The costs of adjustment for displaced workers are measured by the difference between the present value of two income streams. The first measures what the workers would expect to receive if their existing jobs were to continue, whereas the second measures what they would expect to receive if a layoff takes place. JEL Code(s): F16 Keywords: trade adjustment assistance, adjustment costs Download: qed_dp_29.pdf Close » "ALTERNATIVES FOR MINERAL TAX REFORM" GLENN P. JENKINS, S. MALCOLM GILLIS, LOUIS T. WELLS, BRIAN WRIGHT Development Discussion Paper Number: 1978-3 More » ALTERNATIVES FOR MINERAL TAX REFORM GLENN P. JENKINS HIID, Harvard University. S. MALCOLM GILLIS HIID, Harvard University. LOUIS T. WELLS Harvard Business School. BRIAN WRIGHT Department of Economics, Harvard University. Development Discussion Paper: 1978-3 Abstract: The entire Bolivian tax system is in need of thoroughgoing reform. A series of ad hoc adjustments in the system over the years, primarily made in response to recurring short-run fiscal emergencies, has yielded a patchwork overall tax structure that is not only chronically unable to satisfy narrow revenue goals but in many cases is inconsistent with, and often inimical to, achievement of commonly accepted nonrevenue objectives of tax policy. Such goals might include improved resource allocation longer-run economic stability, greater equity in income distribution and assurance of adequate national returns on the exploitation natural resource endowments (see Chapter Four). Although the precise weights attached to each objective are rarely specified, different societies will attach different weights to these and other legitimate goals of tax policy. Even so, it is important that tax reform not proceed in the abstract, but rather should be undertaken with explicit goals in mind and with a fairly clear notion of the extent to which tax reform may contribute to achievement of these goals. Published as: Chapter Seven "Alternatives for Mineral Tax Reform" (with M.Gillis, L.Wells and B. Wright), in M. Gillis et al., Taxation and Mining, Ballinger Publishing Company, Cambridge, Massachusetts, 1978. JEL Code(s): H27 Keywords: tax reform, mineral industry, Bolivia Download: qed_dp_28.pdf Close » "THE MACRO-ECONOMIC IMPACT OF MINERAL EXPORTING SECTOR ON A DEVELOPING ECONOMY" GLENN P. JENKINS, S. MALCOLM GILLIS Development Discussion Paper Number: 1978-2 More » THE MACRO-ECONOMIC IMPACT OF MINERAL EXPORTING SECTOR ON A DEVELOPING ECONOMY GLENN P. JENKINS HIID, Harvard University. S. MALCOLM GILLIS HIID, Harvard University. Development Discussion Paper: 1978-2 Abstract: In this chapter we identify and attempt to qualify the direct and indirect links that the mineral exporting sector has with other economic activity in a developing country. We find that the traditional macroeconomic models used for analysis in developed countries may not be appropriate for some developing countries because the effective constraints and linkages between sectors are significantly different. Keynesian macroeconomic models would lead us to expect that the principal channel for the mining sector´s impact on aggregate economic activity would be through its direct expenditures on labor, materials and transport services. To the extent that unemployed resources characterize these markets, an expansion of mining activities will generate additional income. Real income may be further increased when the income created initially is spent on domestic goods that are also produced with inputs that would otherwise be unemployed. In the case of Bolivia, which may be typical of many other less developed countries, we find that this linkage between the mining sector and the rest of the economy is relatively less important than three other ways in which the mining sector interacts with the rest of the economy. Published as: Chapter Three "The Macroeconomic Impact of the Mineral Exporting Sector on a Developing Economy" (with M. Gillis), in M Gillis et al., Taxation and Mining, Ballinger Publishing Company, Cambridge, Massachusetts, 1978. JEL Code(s): O13 Keywords: mineral sector, macro-economic impact Download: qed_dp_27.pdf Close » "PERFORMANCE EVALUATION OF PUBLIC SECTOR ENTERPRISES: THE CASE OF MINING IN BOLIVIA AND INDONESIA" GLENN P. JENKINS, S. MALCOLM GILLIS Development Discussion Paper Number: 1978-1 More » PERFORMANCE EVALUATION OF PUBLIC SECTOR ENTERPRISES: THE CASE OF MINING IN BOLIVIA AND INDONESIA GLENN P. JENKINS HIID, Harvard University. S. MALCOLM GILLIS HIID, Harvard University. Development Discussion Paper: 1978-1 Abstract: The purpose of this paper is to outline an approach to the evaluation of public sector enterprise performance that attempts to integrate aspects of the financial, economic and social objectives that these organizations often strive to attain. To provide an empirical basis for this discussion we will draw heavily on our experience of the mining sectors in Bolivia and Indonesia, which are dominated by public enterprises. Published as: " Performance Evaluation and Public Sector Enterprises: Cases from Latin America and Asia" (with M. Gillis), in Public Enterprise Investment, Prices, Costs and Returns, P.K. Basu and A. Nove, editors, Kuala Lumpur, Asia and Pacific Development Administration Center, 1978. JEL Code(s): H11 Keywords: public sector enterprises, performance, mining, Bolivia, Indonesia Download: qed_dp_26.pdf Close » "Intermediate Products and the Two sector Growth Model in an Open economy " CHUN-YAN KUO Development Discussion Paper Number: 1977-8 More » Intermediate Products and the Two sector Growth Model in an Open economy CHUN-YAN KUO Department of Regional Economic Expansion, Government of Canada Development Discussion Paper: 1977-8 Abstract: The paper investigates whether the presence of the intermediate good plays a significant role in the growing economy. It also discusses the patterns of international specialization in relation to relative factor endowments. The paper finds that the factor intensities of final goods sectors in both the gross and the net sense are equally important in determining the properties of the model. Published at: The Economic Record, March 1977 JEL Code(s): C62, O41 Keywords: two-sector growth model, intermediate products, open economy, capital/labour ratio, stability, long-run equilibrium Download: qed_dp_184.pdf Close » "THE ENVIRONMENTAL ASSESSMENT ACT´S IMPACT ON BUSINESS IN ONTARIO" JOHN C. EVANS, GLENN P. JENKINS, RICHARD W. BODELL Development Discussion Paper Number: 1977-7 More » THE ENVIRONMENTAL ASSESSMENT ACT´S IMPACT ON BUSINESS IN ONTARIO JOHN C. EVANS Department of Economics, York University, Toronto, Canada. GLENN P. JENKINS HIID, Harvard University. RICHARD W. BODELL Department of Economics, York University, Toronto, Canada. Development Discussion Paper: 1977-7 Abstract: An improved physical environment would undoubtedly yield gross benefits to the residents of Ontario. The really challenging question is how should environmental policy be formulated and implemented in order to achieve these benefits with the least amount of social cost? There is a net social benefit from environmental policy only if the gross social benefits of reduced pollution exceed the social costs of achieving it. Our analysis of the likely effects of the Environmental Assessment Act leads us to conclude that the potential benefits are at best elusive, and possibly non-existent. The potential costs, however, can be identified with some precision, and could be substantial. The next social cost will be borne not only by business firms investing in Ontario, but also by the residents of the Province in general. We conclude, therefore, that the Environmental Assessment Act is not a socially efficient method of implementing environmental policy. Issued as: The Environmental Assessment Act´s Impact on Business in Ontario (with John C. Evans and Richard W. Bodell). Report prepared for the Ministry of Industry and Tourism, Government of Ontario, November 1977 (150 pages). JEL Code(s): Q52 Keywords: Environmental Assessment, Ontario Download: qed_dp_25.pdf Close » "CAPITAL IN CANADA: ITS SOCIAL AND PRIVATE PERFORMANCE 1965-1974" GLENN P. JENKINS Development Discussion Paper Number: 1977-6 More » CAPITAL IN CANADA: ITS SOCIAL AND PRIVATE PERFORMANCE 1965-1974 GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1977-6 Abstract: The principal objective of this study is to estimate the social and private rates of return from physical capital located in the sectors of the Canadian economy for the ten year period from 1965 to 1974. As part of this analysis the effective rates of the various taxes that are levied on the income from capital will be estimated for the industries in manufacturing and non-manufacturing as well as for some other sectors such as mining, agriculture and residential housing. To conduct these estimations it was necessary to transform the traditional financial accounting data into values which are very similar to those which would result from the adoption of a current replacement cost system of accounting in Canada. Published as: Capital in Canada: Its Social Private Performance 1965-1974, Discussion Paper No 98, Economic Council Canada, Minister of Supply and Services Canada 1977, Catalogue No. EC25-98/1977, ISBN 0-0662-01269-0 JEL Code(s): O12 Keywords: capital, rates of return, capital taxation, Canada Download: qed_dp_24.pdf Close » "PUBLIC ELECTRIC POWER AND ECONOMIC WASTE" GLENN P. JENKINS, HENRY B. F. LIM Development Discussion Paper Number: 1977-5 More » PUBLIC ELECTRIC POWER AND ECONOMIC WASTE GLENN P. JENKINS HIID, Harvard University. HENRY B. F. LIM Department of Regional Economic Expansion Government of Canada. Development Discussion Paper: 1977-5 Abstract: The objective of this paper is to examine some aspects of the planning and pricing practices of the publicly owned electric utilities and to indicate how the economic welfare of the country could be improved through changes in these practices. We shall deal with two related sets of questions. First, what are the alterations made in the investment policies of the electric utilities that are a result of their exemption from corporation income taxation and the presence of a government guarantee of their debt? Second, what are the distributive and efficiency implications of the utilities´ policies in Canada of pricing electricity so as to cover average financial costs instead of the marginal social costs of production? JEL Code(s): Q48 Keywords: electric power, economic waste, Canada Download: qed_dp_23.pdf Close » "INFLATION: ITS FINANCIAL IMPACT ON BUSINESS IN CANADA" GLENN P. JENKINS Development Discussion Paper Number: 1977-4 More » INFLATION: ITS FINANCIAL IMPACT ON BUSINESS IN CANADA GLENN P. JENKINS HIID, Harvard University. Development Discussion Paper: 1977-4 Abstract: This study identifies the ways that inflation has had a financial impact on the Canadian business sector. It also contains an estimation of the magnitude of each of these effects of inflation by industrial sector for the years 1965-1974. These individual effects are then aggregated to determine the overall impact of inflation on the income and tax payments of industries. In addition, a separate analysis is carried out to assess the impact of inflation on the cash flow of these sectors. Published as: "Inflation: Its Financial Impact on Business in Canada", Ottawa: Economic Council of Canada, Special Study Series, 1977. JEL Code(s): E31 Keywords: inflation, impact on industries, Canada Download: qed_dp_22.pdf Close » "HIGH-GRADING IN METALLIFEROUS ORE BODIES: THE ECONOMIST´S PERSPERCTIVE" GLENN P. JENKINS, ROBERT CONRAD, MALCOLM GILLIS Development Discussion Paper Number: 1977-3 More » HIGH-GRADING IN METALLIFEROUS ORE BODIES: THE ECONOMIST´S PERSPERCTIVE GLENN P. JENKINS HIID, Harvard University. ROBERT CONRAD HIID, Harvard University. MALCOLM GILLIS HIID, Harvard University. Development Discussion Paper: 1977-3 Abstract: As economists with some experience in mineral economics and the analysis of mining tax policy in several countries, it has been with some interest that we have followed the recent exchange between Thomas and Alduck in Mining Magazine regarding the economic effects of "high-grading". It is our purpose in this paper to contribute an economist´s perspective to the problem of grade management, and to comment upon several points of the Thomas and Walduck contributions which we believe to be unclear or erroneous. JEL Code(s): Q32 Keywords: minerals, high-grading Download: qed_dp_21.pdf Close » "MEASUREMENT OF THE FOREIGN EXCHANGE AND SALES TAX EXTERNALITY ON THE VALUE ADDED OF LABOUR" GLENN P. JENKINS, JOHN C. EVANS Development Discussion Paper Number: 1977-2 More » MEASUREMENT OF THE FOREIGN EXCHANGE AND SALES TAX EXTERNALITY ON THE VALUE ADDED OF LABOUR GLENN P. JENKINS Department of Economics, Harvard University. JOHN C. EVANS Department of Economics, York University. Development Discussion Paper: 1977-2 Abstract: The purpose of this note is to measure the externality created by the existence of sales taxes and trade distortions when labour is taken away from the rest of the economy for use in the project under examination. This externality is calculated as a proportion of the value added of labour estimated by the gross-of-income-tax wage component of the social opportunity cost of labour. This estimation is made by employing the same general equilibrium model and data base as used to calculate the shadow price of the foreign exchange for Canada. JEL Code(s): H43 Keywords: foreign exchange, sales and externality, labor Download: qed_dp_20.pdf Close » "AN ECONOMIC EVALUATION OF FOREIGN FINANCING OF INVESTMENTS IN CANADA" GLENN P. JENKINS, JOHN C. EVANS Development Discussion Paper Number: 1977-1 More » AN ECONOMIC EVALUATION OF FOREIGN FINANCING OF INVESTMENTS IN CANADA GLENN P. JENKINS Department of Economics, Harvard University. JOHN C. EVANS Department of Economics, York University. Development Discussion Paper: 1977-1 Abstract: Large-scale, capital intensive projects in Canada frequently rely on foreign financing and as a result the foreign-owned segment of many sectors has grown considerably. New projects either reallocate the existing foreign investment into the country or cause a net augmentation to the capital stock of a country. In this paper we endeavour to determine a methodology for estimating the nature and magnitude of any net economic benefits which result from the foreign financing of new investments; such benefits should be included in the overall economic evaluation of a project. Issued as: "An Economic Evaluation of Foreign Financing and Investments in Canada" (with J.C. Evans), Department of Regional Economic Expansion, April 1977. JEL Code(s): H43 Keywords: foreign financing, economic evaluation, Canada Download: qed_dp_19.pdf Close » "EVALUATION OF SOCIAL EXTERNALITIES FROM INVESTMENTS IN COMMUNITY INFRASTRUCTURE by INDUSTRIAL ENTERPRISES" GLENN P. JENKINS Development Discussion Paper Number: 1976-1 More » EVALUATION OF SOCIAL EXTERNALITIES FROM INVESTMENTS IN COMMUNITY INFRASTRUCTURE by INDUSTRIAL ENTERPRISES GLENN P. JENKINS Department of Economics, Harvard University. Development Discussion Paper: 1976-1 Abstract: Roads, electrical generation for facilities, hospitals, schools, housing, and recreational facilities are investments that are often made by mining enterprises in communities where they are operating. Often these enterprises argue that the services generated by this community infrastructure are external benefits created by the firm and should be added to the other output or benefits that constitute the primary purpose of the enterprise´s operations. In this paper we wish to outline a method for the evaluation of the social benefits and costs that should be attributed to the enterprise for these facilities that are used by the community at large. JEL Code(s): H43 Keywords: mining, infrastructure investments, community effects Download: qed_dp_18.pdf Close » "THE EFFECT OF TAX POLICY ON THE FOREIGN AND DOMESTIC OPERATIONS OF THE UNITED STATES PETROLEUM INDUSTRY" GLENN P. JENKINS Development Discussion Paper Number: 1975-4 More » THE EFFECT OF TAX POLICY ON THE FOREIGN AND DOMESTIC OPERATIONS OF THE UNITED STATES PETROLEUM INDUSTRY GLENN P. JENKINS Department of Economics, Harvard University. Development Discussion Paper: 1975-4 Abstract: This statement outlines the economic effects of certain features of the existing method of taxation of the foreign operations of the United States petroleum corporations. These tax provisions have allowed the American petroleum companies to largely avoid paying United States tax on their foreign earned income since at least 1962. It also discusses some of the tax and subsidy proposals that have been made to shape the growth the demand and supply of energy within the United States. Statement to: Committee on Ways and Means, United States House of Representatives, Hearings on the Subject of: The Energy Crisis and Proposed Solutions, March 6, 1975. JEL Code(s): H25, H23 Keywords: Petroleum Industry, Taxation, Foreign taxation Download: qed_dp_17.pdf Close » "THE SOCIAL COST OF FOREIGN EXCHANGE IN AN ECONOMY WITH TRADE DISTORTIONS AND DIFFERENTIAL RATES OF DOMESTIC TAXATION" GLENN P. JENKINS Development Discussion Paper Number: 1975-3 More » THE SOCIAL COST OF FOREIGN EXCHANGE IN AN ECONOMY WITH TRADE DISTORTIONS AND DIFFERENTIAL RATES OF DOMESTIC TAXATION GLENN P. JENKINS Department of Economics, Harvard University. Development Discussion Paper: 1975-3 Abstract: The need to calculate the shadow price of foreign exchange for economic project evaluation has been recognized for the same time in the case of developing countries. Most of these countries have large trade distortions, and in addition, often the project being evaluated will have a relatively significant impact on the country´s balance of payments either as a user or supplier of foreign exchange. In estimation the shadow price of foreign exchange, certain assumptions need to be made concerning the trade policies that the country will undertake during the period that the shadow exchange rate will be used. The model developed in this paper begins with the assumption that the present tax, tariff and subsidy distortions which have caused a divergence between the market and economic value of foreign exchange will remain in the future. JEL Code(s): H43 Keywords: foreign exchange, social cost, Canada Download: qed_dp_16.pdf Close » "EVALUATION OF THE SOCIAL OPPORTUNITY COST OF LABOUR IN THE AIRCRAFT INDUSTRY" GLENN P. JENKINS, C. MONTMARQUETTE, G. KRIVICKY Development Discussion Paper Number: 1975-2 More » EVALUATION OF THE SOCIAL OPPORTUNITY COST OF LABOUR IN THE AIRCRAFT INDUSTRY GLENN P. JENKINS Department of Economics, Harvard University C. MONTMARQUETTE Department of Economics, University of Montreal. G. KRIVICKY Department of Industry, Trade and Commerce, Government of Canada. Development Discussion Paper: 1975-2 Abstract: In recent years the aircraft industry in Canada has experienced a decline in output. As a consequence there have been major lay-offs of employees who have had to find employment in other activities. All workers have not had the same difficulties in finding alternative employment when released from the aircraft industry. Factors such as age of the worker, his skill, his seniority in the aircraft industry and the general employment conditions in the economy at the time he was laid off will all influence the length of time he requires to find alternative employment. The objective of this paper is to carryout an empirical estimation of the social opportunity cost of labour for this sector that takes into consideration each of these factors. JEL Code(s): J30, H43 Keywords: opportunity cost, labor, aircraft industry, Canada Download: qed_dp_15.pdf Close » "UNITED STATES TAXATION AND THE INCENTIVE TO DEVELOP FOREIGN PRIMARY ENERGY SOURCES" GLENN P. JENKINS Development Discussion Paper Number: 1975-1 More » UNITED STATES TAXATION AND THE INCENTIVE TO DEVELOP FOREIGN PRIMARY ENERGY SOURCES GLENN P. JENKINS Department of Economics, Harvard University Development Discussion Paper: 1975-1 Abstract: The development of the international petroleum industry has been influenced by the taxation policies of the United States, the home country of most of the major integrated international petroleum producers. These corporations are multinational in the most general definition of the word, operating in over 100 countries and centrally involved in every aspect of the world petroleum industry. They are also multinational in the sense that commonly the same companies involved in the primary production in one set of the countries, also conduct major refining and marketing operations in other consumer countries. The first two parts of this study sketch the general industrial structure of the international petroleum industry and examine its position as a major source of United States foreign investments. In the third section we discuss the tax structure of the U.S. as it applies to foreign investment, and in particular to the petroleum industry. Income and tax data by country are analyzed in the fourth section to show how the petroleum companies have accommodated their organization to the tax environment. In the fifth and sixth parts of the paper, some of the future developments of the international petroleum industry are analyzed and some of the prospective U.S. tax policies are evaluated. Published as: "United States Taxation and the Incentive to Develop Foreign Primary Energy Sources" in Studies in Energy Tax Policies, Gerald Brannon, editor, Ballinger Publishing Co., Cambridge Mass., 1975. JEL Code(s): Q48 Keywords: petroleum industry, foreign investment, U.S. Download: qed_dp_14.pdf Close » "A Two-Sector Growth Model with an Intermediate Product" CHUN-YAN KUO Development Discussion Paper Number: 1974-6 More » A Two-Sector Growth Model with an Intermediate Product CHUN-YAN KUO University of Western Ontario Development Discussion Paper: 1974-6 Abstract: This paper is a comment note on the article by R. N. Batra and R. Singh for their strong conditions required for the existence of the short-run equilibrium and the long-run equilibrium in a two-sector growth model with an intermediate product. Our paper shows that the factor intensities of final goods sectors in the gross and the relative gross shares of primary factors are crucial in determining the properties of the model. All the conditions for stability are in fact much weaker than those derived by Batra and Singh due to their neglect of drawing a distinction between the net and the gross capital/labour ratios of a final good. Published at: The Southern Economic Journal, January 1974 JEL Code(s): C62, O41 Keywords: two-sector growth model, intermediate products, capital/labour ratio, existence, stability, long-run equilibrium Download: qed_dp_185.pdf Close » "AN EVALUATION OF ALTERNATIVE TAX SYSTEMS APPLICABLE TO THE MINERAL INDUSTRIES" GLENN P. JENKINS Development Discussion Paper Number: 1974-5 More » AN EVALUATION OF ALTERNATIVE TAX SYSTEMS APPLICABLE TO THE MINERAL INDUSTRIES GLENN P. JENKINS Department of Economics, Harvard University Development Discussion Paper: 1974-5 Abstract: Before discussing the specific proposal of the resource rent tax developed in the paper by Ross Garnaut and Anthony C. Ross the advantages and disadvantages inherent in the four broad takes applicable to the mining sector are considered. In this way, we will have a better understanding of the attractions and pitfalls inherent in the specific scheme for mineral taxation that has been outlined by Garnaut and Ross. The paper emphasizes the importance of the administrative complexity of levying take particular tax in determining its effectiveness in practice. Published as: "An Evaluation of Alternative Tax Systems Applicable to the Mineral Industries", in Mineral Leasing as an Instrument of Public Policy, Crommeline, M. and Thompson, A.R., editors, University of British Columbia Press, Vancouver, 1997. It has been reprinted as, "How to Tax Mineral Extraction," pp.279-285 in Taxation in Developing Countries, editors Bird, R. and Oldman. O., Baltimore and London: The Johns Hopkins Press Ltd., 1990. JEL Code(s): H25, Q32 Keywords: Mining, resource taxations, tax administration Download: qed_dp_13.pdf Close » "TAX PREFERENCES AND THE FOREIGN OPERATIONS OF THE UNITED STATES PETROLEUM INDUSTRY" GLENN P. JENKINS Development Discussion Paper Number: 1974-4 More » TAX PREFERENCES AND THE FOREIGN OPERATIONS OF THE UNITED STATES PETROLEUM INDUSTRY GLENN P. JENKINS Department of Economics, Harvard University Development Discussion Paper: 1974-4 Abstract: This statement outlines some of the economic effects of the present for the taxation of the foreign activities of United States petroleum corporations. The four principal features of this system are the foreign tax credit, the foreign percentage depletion allowance, the deduction of foreign branch losses from United States domestic income, and the special tax treatment of income from tankers. These four tax provisions, in combination, have allowed the petroleum corporations to largely avoid paying any United States tax on their foreign earned income since at least 1962. Issued as: "Tax Preferences and the Foreign Operations of the United States Petroleum Industry", statement in Report of Hearings to Committee on Foreign Relations, Subcommittee on Multinational Corporations, United States Senate, January 30, 1974. JEL Code(s): H25, F23 Keywords: Taxation, Foreign operations, Petroleum Download: qed_dp_12.pdf Close » "ECONOMIC RENTS, REGULATIONS AND TAX INCENTIVES IN THE CANADIAN PETROLIUM INDUSTRY" GLENN P. JENKINS Development Discussion Paper Number: 1974-3 More » ECONOMIC RENTS, REGULATIONS AND TAX INCENTIVES IN THE CANADIAN PETROLIUM INDUSTRY GLENN P. JENKINS Department of Economics, Harvard University Development Discussion Paper: 1974-3 Abstract: In this paper, the tax and regulatory system applicable to petroleum production in Canada is modeled so that an estimate can be made of its impact on private investor´s evaluation of petroleum resources located in that country. This analysis is made from both the point of view of an investor who is a Canadian resident and one who is a United States resident. In the latter case, the United States taxation of foreign earned income is integrated with the Canadian tax system. Issued as: "Economic Rents, Regulations and Tax Incentives in the Canadian Petroleum Industry", Harvard Institute of Economic Research Discussion Paper No. 341, February 1974. JEL Code(s): Q48 Keywords: petroleum, economic rents, Canada Download: qed_dp_11.pdf Close » "THE IMPACT OF INFLATION, TAXATION AND ACCOUNTING PRACTICES ON THE EVALUATION OF PRIVATE AND SOCIAL RATES OF RETURN TO CAPITAL IN CANADA" GLENN P. JENKINS Development Discussion Paper Number: 1974-2 More » THE IMPACT OF INFLATION, TAXATION AND ACCOUNTING PRACTICES ON THE EVALUATION OF PRIVATE AND SOCIAL RATES OF RETURN TO CAPITAL IN CANADA GLENN P. JENKINS Department of Economics, Harvard University Development Discussion Paper: 1974-2 Abstract: The purpose of this paper is to provide a methodology for estimating the rates of return from capital located in the private sectors of the economy. This methodology is then applied to Canadian data and private and economic rates of return from capital are estimated which are largely free from the distortions that taxation laws, inflation, relative price changes and the "conservative" rules of accounting impose on the financial data provided by business firms. Published as: "The Impact of Inflation, Taxation, and Accounting Practices on the Evaluation of Private and Social Rates of Return to Capital in Canada". In Conference Volume on Measurement of the Rate of Return to Capital, edited by Daniel Holland, London 1974. JEL Code(s): E22 Keywords: rates of return, private capital, Canada Download: qed_dp_10.pdf Close » "FOREIGN TAX CREDITS AND THE INTERNATIONAL INTERDEPENDANCE OF CORPORATE TAX POLICIES" GLENN P. JENKINS, ANTAL DEUTSCH Development Discussion Paper Number: 1974-1 More » FOREIGN TAX CREDITS AND THE INTERNATIONAL INTERDEPENDANCE OF CORPORATE TAX POLICIES GLENN P. JENKINS Department of Economics, Harvard University ANTAL DEUTSCH Department of Economics, McGill University, Canada Development Discussion Paper: 1974-1 Abstract: This paper evaluates the degree to which the American tax treatment of foreign earned income neutralizes the incentive effects of change in Canadian corporation income tax policies. The value of the tax transfers that would take place between the United States and Canadian treasuries for various changes in Canadian tax policies are estimated by industry for 1968. From this analysis the general conclusion is that for most United States owned corporations operating in Canada a change in their effective Canadian corporation income tax rates will alter their effective U.S corporation income tax rates on this income in the opposite direction by an equal amount. Issued as: "Foreign Tax Credits and the International Interdependence of Corporate Tax Policies" (with A. Deutsch), Harvard Institute of Economic Research Discussion paper No. 384, September 1974. JEL Code(s): H87 Keywords: foreign tax credits, Canadian Tax and Policy Download: qed_dp_9.pdf Close » "MEASUREMENT OF GAINS AND LOSSES FROM FOREIGN INVESTMENT" GLENN P. JENKINS Development Discussion Paper Number: 1973-3 More » MEASUREMENT OF GAINS AND LOSSES FROM FOREIGN INVESTMENT GLENN P. JENKINS Department of Economics, Harvard University Development Discussion Paper: 1973-3 Abstract: The main body of theory concerned with the gains and losses incurred because of international investment has been carried out in the context of a two factor-two country-good model in which labour is immobile internationally while some of the capital goods of the home country are invested abroad. However, when we examine the occasions where significant amounts of foreign investments have taken place we find that they are often accompanied by an immigration of labour to the country which is receiving this foreign owned capital. In this paper a three country model is developed containing, a home country H, a foreign country F, and the group of countries U in which labour receives a substantially lower real wage than H or F. The wage differential between U and either H or F is large enough so the latter countries can get unlimited amounts of labour through immigration from U at their existing wage rate, if their immigration authorities allow it. Published as: "Measurement of the Gains and Losses from Foreign Investment", in Policy Formation in an Open Economy, edited by Robert A. Mundell and E. van Snellenburg, University of Waterloo, 1974, pp. 393- 413. JEL Code(s): O24 Keywords: foreign investment, gains and losses, Canada Download: qed_dp_8.pdf Close » "THE MEASUREMENT OF RATES OF RETURN AND TAXATION FROM PRIVATE CAPITAL IN CANADA" GLENN P. JENKINS Development Discussion Paper Number: 1973-2 More » THE MEASUREMENT OF RATES OF RETURN AND TAXATION FROM PRIVATE CAPITAL IN CANADA GLENN P. JENKINS Department of Economics, Harvard University Development Discussion Paper: 1973-2 Abstract: Information on the rates of return and effective rates of taxation from capital in the private sectors of an economy are prerequisites for both rational public sector project evaluations and for measurement of the degree of equity and excess burden credited by the economy's taxation system. In many countries accurate knowledge of the values of these variables is absent. The principal objective of this study is to overcome this dearth of information in the case of Canada. Published as: "Measurement of Rates of Return and Taxation from Private Capital in Canada", in Benefit-Costs Analysis, W.A. Niskanen et al., editors, Aldine, 1972. JEL Code(s): E22, H20 Keywords: rate of return, capital, Canada Download: qed_dp_7.pdf Close » "THE ROLE OF CANADIAN AND UNITED STATES MONETARY POLICY IN THE DETERMINATION OF INTEREST RATES IN CANADA" GLENN P. JENKINS, HENRY B. F. LIM Development Discussion Paper Number: 1973-1 More » THE ROLE OF CANADIAN AND UNITED STATES MONETARY POLICY IN THE DETERMINATION OF INTEREST RATES IN CANADA GLENN P. JENKINS Department of Economics, Harvard University HENRY B. F. LIM Treasury of Ontario, Government of Ontario, Canada Development Discussion Paper: 1973-1 Abstract: This paper investigates the reaction of interest rates to changes in domestic and foreign monetary policies during periods of fixed and flexible exchange rates. In the empirical sections of this study we analyze the relationship between Canadian interest rates and some of their important determinants. JEL Code(s): E43 Keywords: interest rates, Canada, monetary policy Download: qed_dp_6.pdf Close » "The Application of an Optimizing Model for Economic Development to Problems of Economic Planning in Northern Canada " CHUN-YAN KUO Development Discussion Paper Number: 1972-2 More » The Application of an Optimizing Model for Economic Development to Problems of Economic Planning in Northern Canada CHUN-YAN KUO Department of Indian Affairs and Northern Development, Canada Development Discussion Paper: 1972-2 Abstract: The paper is to formulate an economic model for determining possible development strategies and to demonstrate how it can be applied. It is necessary to identify some of the key economic features found in this part of the country since these will determine the type and the nature of the model. Published at: Department of Indian Affairs and Northern Development, Government of Canada, October 1972 JEL Code(s): C61, O21 Keywords: Northern Canada, ethnic groups, optimizing model, oil, gas, resource constraints Download: qed_dp_183.pdf Close » "MEASUREMENT OF THE GAINS FROM FOREIGN OWNED CAPITAL: The Canadian Case" GLENN P. JENKINS Development Discussion Paper Number: 1972-1 More » MEASUREMENT OF THE GAINS FROM FOREIGN OWNED CAPITAL: The Canadian Case GLENN P. JENKINS Department of Economics, University of Chicago Development Discussion Paper: 1972-1 Abstract: The main body of theory concerning international investment has dealt primarily with the derivation of the conditions under which it is necessary to either subsidize or tax traded goods and foreign investment in order to obtain the optimum level of foreign investment for the welfare maximization of either the host or lending country. Using the two sector, two country model where only one factor is mobile but both goods are traded, a number researches have concluded that under competitive conditions, capital-rich countries tie up too great a proportion of their resources in foreign ventures. This paper considers this issue in a world where there is taxation in the host and in the home country of the foreign investor. JEL Code(s): F23 Keywords: Economic gains, foreign owed capital, Canada Download: qed_dp_5.pdf Close » "The Role of the United States Monetary Stock in a Model of the Canadian Economy" GLENN P. JENKINS Development Discussion Paper Number: 1971-3 More » The Role of the United States Monetary Stock in a Model of the Canadian Economy GLENN P. JENKINS Department of Economics, University of Chicago Development Discussion Paper: 1971-3 Abstract: This paper is an attempt to evaluate the way the monetary policy in the United States influences the behaviour of the Canadian economy. The analysis of this question is approached by estimating a simple reduced form model of the Canadian economy where try to find the extent to which nominal income in Canada is determined by the monetary policy of the United States. An attempt is also made to identify the important channels through which this influence is exerted. Prepared for: Economic Planning Branch, Government of Ontario JEL Code(s): E43 Keywords: United States, Canada, money stocks, real exchange, rate changes, nominal income change Download: qed_dp_192.pdf Close » "THE MEASUREMENT OF TAX INCENTIVES FOR SECTORIAL EXPANSION The Cases of the Mineral and Petroleum Industries in Canada" GLENN P. JENKINS Development Discussion Paper Number: 1971-2 More » THE MEASUREMENT OF TAX INCENTIVES FOR SECTORIAL EXPANSION The Cases of the Mineral and Petroleum Industries in Canada GLENN P. JENKINS Department of Economics, University of Chicago Development Discussion Paper: 1971-2 Abstract: The purpose of this paper is the construction of a framework to evaluate the relative incentives for investment created by the differential taxation of income from capital in the manufacturing, mining and petroleum sectors of the Canadian economy. This analysis does not deal with the issue of how differential rates of taxation influence the optimum rate of extraction from a given resource body. Instead the emphasis is on their potential to misallocate real resources between sectors. JEL Code(s): H21 Keywords: tax incentives, petroleum, mining Download: qed_dp_4.pdf Close » "A FORECASTING MODEL OF THE CANADIAN ECONOMY" GLENN P. JENKINS Development Discussion Paper Number: 1971-1 More » A FORECASTING MODEL OF THE CANADIAN ECONOMY GLENN P. JENKINS Department of Economics, University of Chicago Development Discussion Paper: 1971-1 Abstract: The main body of this paper consists of a description of an economic forecasting model of the Canadian Economy. The results of a preliminary estimation are presented. Use of the model as a forecasting tool is then discussed in relation to simulations that have been made. Issued as: "A Forecasting Model of the Canadian Economy", Staff Technical Paper No.2, Economic Planning Branch, Policy Planning Division, Department of Treasury and Economics, Government of Ontario, January 1971. JEL Code(s): E47 Keywords: forecasting model, Canada Economy Download: qed_dp_3.pdf Close » "THE DETERMINANTS OF THE NOMINAL INTEREST RATE An Empirical Study of the Canadian Case" GLENN P. JENKINS, HENRY B.F. LIM Development Discussion Paper Number: 1970-1 More » THE DETERMINANTS OF THE NOMINAL INTEREST RATE An Empirical Study of the Canadian Case GLENN P. JENKINS Department of Economics, University of Chicago HENRY B.F. LIM Treasury of Ontario, Government of Ontario, Canada. Development Discussion Paper: 1970-1 Abstract: The Canadian economy experienced an increasing rate of inflation during the last half of the 1960s.The latter part of this period; interest rates reached levels higher than had been experienced for several decades. This study attempts to explain how the levels of interest rates are determined and to estimate the timing of the movements of the Canadian short-term Treasury bill rate. JEL Code(s): E43 Keywords: inflation, interest rates, Canada Download: qed_dp_2.pdf Close »   John Deutsch International Executive Programs Queen's University - Kingston, Ontario, Canada K7L 3N6 Tel: (1) 613-533-6556 - Fax: (1) 613-533-6818