James Roumasset
The Economic Effects of Tariffs
James Roumasset* “Give me a one-handed economist. All my economists say, ‘on the one hand… on the other.’” President Harry Truman Updated 04/03/2025 Addendum on Reciprocal Tariffs Reciprocal tariffs may be a good idea, but they have been badly implemented. The case for reciprocal tariffs goes as follows. First, optimal tariff theory suggests that a […]
Read MoreEcological Economics and the Circular Economy
By Kimberly Burnett, James Roumasset, and Christopher Wada The Circular Economy In 1969, Belgian industrial designers Paul Jorion and Jacques Braijt proposed the circular concept of manufacturing products from recycled materials as opposed to the “linear” concept of producing them from mined or harvested raw materials and discarding the corresponding waste. The idea has gained […]
Read MoreThe Nature, Causes, and Consequences of Student Deselection and Criminalization
By Katherine Irwin and James Roumasset1 A central principle of public economics is that the government should correct market failures. For example, when a firm’s pollution imposes social cost on society—an externality—the market fails to provide an efficient allocation of resources. The externality can be corrected by forcing the firm to pay for the cost […]
Read MoreSolving Optimal Groundwater Problems with Excel
Abstract: Welfare maximizing management of coastal groundwater requires a sequence of pumping targets, typically terminating with a constant withdrawal rate in the long run. In contrast, managing according to sustainable yield at best identifies the constant rate of pumping in the long run. We illustrate an accessible solution method, using Excel Solver to find the […]
Read MoreEnergy Economics: Lessons for and from the Philippines
By Jim Roumasset This is to share some recent energy research from the Philippines. Some of the findings have relevance for other small economies such as Hawaii. Green GDP and environmental taxationMany governments, including those in the Philippines and the U.S. declare that their mission is to promote the general welfare. It is well known […]
Read MoreDo Natural Disasters Make Sustainable Growth Impossible?
We consider the prospects for sustainable growth using expected utility models of optimal investment under threat from natural disasters. Adoption of a continuous time, stochastic Ramsey growth model over an infinite time horizon permits the analysis of sustainability under uncertainty regarding adverse events, including both one-time and recurrent disasters. As appropriate to small economies, we […]
Read MoreThe role of power prices in structural transformation: Evidence from the Philippines
The Philippines provides an extreme example of Rodrik’s observation that late developing countries experience deindustrialization at lower levels of per capita income than more advanced economies. Previous studies point to the role of protectionist policies, financial crises, and currency overvaluation as explanations for the shrinking share of the industry sector. We complement this literature by […]
Read MoreThe Role of Electricity prices in Structural Transformation: Evidence from the Philippines
The Philippines provides an extreme example of Rodrik’s observation that late developing countries experience deindustrialization at lower levels of per capita income than more advanced economies. Previous studies point to the role of protectionist policies, financial crises, and currency overvaluation as explanations for the shrinking share of the industry sector. We complement this literature by […]
Read MoreFilipino 2040: Environmental Resources, Shocks, and National Well-Being
The contribution of the environmental-resource sector to national well-being is the sum of natural resource depletion and environmental degradation. Inasmuch as existing resource stocks are below efficient levels, better enforcement of existing laws as well as policies that incentivize sustainable use are needed. Similarly, progressive royalty assessment of mineral resources can incentivize exploration without transferring […]
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