Estimation of a complete system of nonlinear Engel curves: further evidence from Box–Cox Engel curves for Sri Lanka

Rajapakse, Suri

doi:10.1080/00036840802552346

Cited by 8 publications

(3 citation statements)

References 15 publications

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“…Besides, the food Engel curve depicts the highest R 2 from all items. A similar study by Rajapakse (2011) again confirms stable behavior of food-based Engel curves. Moreover, in this study using complete system of EC some other items including housing and clothing expenditures are relative luxuries in the system (demand is more expenditure elastic).…”

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confidence: 66%

Measuring the Shadow Economy: Endogenous Switching Regression with Unobserved Separation

2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. We develop an estimator of unreported income, perhaps due to tax evasion, that does not depend on as strict identifying assumptions as previous estimators based on microeconomic data. The standard identifying assumption that the self-employed underreport income whereas wage and salary workers do not is likely to fail in countries where employees are often paid under the table or engage in corrupt activities. Assuming that evading individuals have a higher consumption-income gap than non-evading ones due underreporting both to tax authorities and in surveys, an endogenous switching model with unknown sample separation enables the estimation of consumption-income gaps for both underreporting and truthful households. This avoids the need to identify non-evading and evading groups exante. This methodology is applied to data from Czech and Slovak household budget surveys and shows that estimated evasion is substantially higher than found using previous methodologies. JEL Classification:C34, E01, H26, J39

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confidence: 66%

Measuring the Shadow Economy: Endogenous Switching Regression with Unobserved Separation

2013

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“…The GTAP (version seven) database is used to obtain most of the elasticity values for the model. The income or expenditure elasticity values for different household groups were obtained from previous empirical estimates, as given in [28][29][30][31].…”

Section: Theoretical Model and Data Specificationsmentioning

confidence: 99%

The Impact of Trade Liberalisation on Poverty and Welfare in South Asia: A Special Reference to Sri Lanka

Perera¹,

Siriwardana²,

Mounter³

2017

Poverty, Inequality and Policy

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This chapter evaluates the economic impacts of SAFTA relative to alternative trade policies to determine which policies best deliver increased welfare to citizens, thereby helping to alleviate income disparities and poverty in the region. The study does so with a particular emphasis on the income inequality and poverty effects of trade liberalisation in South Asia on households in Sri Lanka. A static multi-country computable general equilibrium model for South Asia (SAMGEM) is formulated by incorporating a multiple household framework into the Global Trade Analysis Project (GTAP) model. A nonparametric extended representative household agent approach is used to estimate the income inequality and poverty effects of trade liberalisation in South Asia by using micro-household survey data. The findings revealed that amongst the different trade policy options considered, unilateral trade liberalisation ensures the highest welfare to all South Asian members followed by the customs union (with the exception of Sri Lanka) and the SAFTA. The poverty and income equality analysis for the Sri Lankan economy suggests that poverty is predominant in the rural and the estate sectors and Sri Lanka can achieve a significant progress towards poverty reduction as a result of implementing trade reforms.

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“…Most of the elasticity values in the model are taken from the GTAP (version seven) database. The income or expenditure elasticity values for different household groups were obtained from previous empirical estimates (Rajapakse, 2011;Majumder, 1986;Yen and Roe, 1986;Burney and Khan, 1991).…”

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Should agriculture be exempt from trade policy reforms in South Asia?

Perera¹,

Siriwardana²,

Mounter³

2014

Asia-Pacific Development Journal

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Contracting parties to the Agreement on South Asian Free Trade Area (SAFTA) are committed to trade liberalization within a fixed time frame. Most contracting parties have kept agriculture out of their tariff liberalization commitments. A key question therefore is: should agriculture receive dispensation given the sector's important contribution to South Asia's economic structure? An enhanced multi-household framework within a multi-country computable general equilibrium (CGE) approach was used to assess the impacts on trade flows, government fiscal revenues and income distribution among households in countries that are contracting parties to SAFTA, assuming full trade liberalization and trade liberalization with the protection of the agricultural sector. The results indicate that, although both policies would facilitate economic growth and lead to a reduction in income disparity among household groups in all South Asian countries, the overall welfare gains would be greater under full trade liberalization. Hence, the removal of agricultural sector tariffs should be an important consideration in future SAFTA discussions; such a step would be a principal means for strengthening intraregional trade.

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Estimation of a complete system of nonlinear Engel curves: further evidence from Box–Cox Engel curves for Sri Lanka

Cited by 8 publications

References 15 publications

Measuring the Shadow Economy: Endogenous Switching Regression with Unobserved Separation

Measuring the Shadow Economy: Endogenous Switching Regression with Unobserved Separation

The Impact of Trade Liberalisation on Poverty and Welfare in South Asia: A Special Reference to Sri Lanka

Should agriculture be exempt from trade policy reforms in South Asia?

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