Economics Commons^™

Three Essays On Public Policy And Welfare In Developing Countries, Alvaro Jeronimo Callejas

Doctoral Dissertations

Developing countries typically implement public policies that modify the market structure to reach a specific goal. However, in this attempt to achieve a policy objective, policymakers may not consider unintended consequences caused by firms' and consumers' optimizing behavior. Moreover, the reaction of market agents to the implemented policy may undermind its effectiveness or lead to an outcome opposite to the one persuaded. This dissertation uses a set of structural models to assess the welfare effect of both intended and unintended consequences of public policies introduced in developing countries. In the first chapter, we evaluate the welfare implications of a public …