A Planner Of Global Income Transfers: International Public Goods And Productivity Differentials

The purpose of this paper, by introducing the adjustment expense of global income transfers across N countries, is to produce an explicit rule for the planner country regarding income transfers, and to investigate the effects of income transfers on each country's welfare. The findings are: when country i has a productive advantage in producing public goods, country i becomes an income receiver; specifying the particular level of the adjustment expense for global income transfers, the planner can decide the values of income transfers for all countries; even though any country can become a planner of income transfers, all countries get the same utility level, while the low adjustment expense under a particular planner country leads to a Pareto-improving outcome.