Keshab Bhattarai

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NBER Working Papers and Publications

August 1998The Division and Size of Gains from Liberalization of Service Networks
with John Whalley: w6712
This paper emphasizes the different nature of cross border liberalization in network related services, such as telecoms, compared to liberalization in goods. In the presence of network externalities, it argues that if two disjoint country service networks involving a small and large country are connected as part of international liberalization, the per capita gain for the small country from access to a large network will be large, and the per capita gain for the large country will be small. Benefits of liberalization in network related serv ices, unlike goods, are more likely to be approximately equally divided between large and small countries than is true of trade in goods, where benefits accrue disproportionately to the small country. We also argue that non-cooperation in network relat...

Published: Bhattarai, Keshab and John Whalley. "The Division And Size Of Gains From Liberalization In Service Networks," Review of International Economics, 2006, v14(3,Aug), 348-361. citation courtesy of

November 1997Discreteness and the Welfare Cost of Labor Supply Tax Distortions
with John Whalley: w6280
We discuss the role played by discrete labor supply (leisure consumption) choice in" affecting measures of the welfare cost of labor supply tax distortions. We construct comparable" continuous and discrete choice models, each calibrated to have similar aggregate" (uncompensated) labor supply elasticities. In the former, there is a single representative" consumer; in the latter there is a distribution of individuals across preference parameters. In the" discrete model, taxes induce a large response from a subset of the population of the population shows unchanged behavior. Welfare costs of similar taxes in continuous" models can substantially exceed those in discrete models or vice versa formulation used. Experiments are also reported for a two labor type household model with one" cont...

Published: Bhattarai, Keshab and John Whalley. "Discreteness And The Welfare Cost Of Labor Supply Tax Distortions," International Economic Review, 2003, v44(3,Aug), 1117-1133. citation courtesy of

The Redistributive Effects of Transfers
with John Whalley: w6281
Existing literature assessing the impacts of transfers on low income households assumes that transfer program participants benefit by the full amount of cash transfers received. We argue that because tax-back arrangements accompany such transfer programmes, and endogenous participantion decisions (regime choices) are involved, a money-metric measure of the utility generated by transfers will typically be substantially less than the cash value of transfers received. We use a conditional choice general equilibrium model of the UK, calibrated to literature based labor supply and labor demand elasticities, with a leisure-consumption choice for household and production involving heterogeneous labor inputs. In the model households face non-convex budgets set due to differences in tax rates and ...
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