This paper examines the effects of pollution taxes on welfare and environment for a small open economy. In the presence of tourism, pollution taxes provide a double dividend of less pollution and improvements in the tourism terms of trade. The optimal pollution taxes are derived under exogenous...

The purpose of this paper is to examine the welfare implications of traditional customs unions in a Harris-Todaro type of economy. In this context, the authors show, among other things, that, in the Harris-Todaro type of economy, the welfare implications of trade diversion I is ambiguous, while...

The sizeable literature on extinction in economics has paid scant attention to the problem of constructing measures of species extinction. Moreover, this literature has not studied the question of species extinction in stochastic systems that are jointly determined. Consequently, the objective...

This article analyses the welfare implications of the customs unions in the presence of multinational corporations for a less than fully employed small open economy. The traditional two-sector model, with a specific factor for the multinational corporation, is employed for this purpose. This...