Tuesday, May 18, 2010

Taxation, Lobbies and Welfare in an Enclave Economy: Rubber in the Brazilian Amazon 1870-1910

I've met Felipe Tãmega in 2006. He was a graduate student in economic history at the LSE and Colin Lewis was his thesis supervisor. At first glance it was obvious that he was a really talented young man and a nice chap. Google led me to this very interesting paper from him (I guess it is part of his PhD thesis):
Taxation, Lobbies and Welfare in an Enclave Economy: Rubber in the Brazilian Amazon 1870-1910
Abstract
This paper uses an enclave economy (Brazilian Amazon) to show that [export] taxes can be welfare enhancing and be used as instruments to move the economy away from the immiserizing growth path. Nonetheless, the results show that the government could have raised the Brazilian Amazon's welfare with a much higher export tax, and offers political-economic reasons why it did not.
Now he is at the Harvard Business School. Great! Congratulations!!!

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