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To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jenvman.2010.07.029 Byline: Maria A. Garcia-ValiA[+ or -]as (a), Roberto Martinez-EspiA[+ or -]eira (b), Francisco Gonzalez-Gomez (c) Abstract: Using information on a basic or 'lifeline' level of domestic water use obtained from a water demand function based on a Stone-Geary utility function, a minimum water threshold of 128m.sup.3 per household per year was estimated in a sample of municipalities in Southern Spain. As a second objective, water affordability indexes were then calculated that relate the cost of such lifeline to average municipal income levels. The analysis of the factors behind the differences in that ratio across Andalusian municipalities shows that the relative cost of purchasing the lifeline appears inversely related to average income levels, revealing an element of regressivity in the component of water tariffs affecting the least superfluous part of the household's consumption. The main policy recommendation would involve redesigning water tariffs in order to improve access for lower income households to an amount of water sufficient to cover their basic needs. The proposed methodology could be applied to other geographical areas, both from developed and from developing countries, in order to analyze the degree of progressivity of the water tariffs currently in effect and in order to guide the design of more equitable regulatory policies. Author Affiliation: (a) Toulouse School of Economics, LERNA, Manufacture des Tabacs, 21 allee de Brienne, 31000 Toulouse, France (b) Department of Economics, Memorial University of Newfoundland, St John's, Newfoundland and Labrador A1A 5S7, Canada (c) Departamento de Economia Aplicada, Facultad de Ciencias Politicas y Sociologia, Universidad de Granada, C/Rector Lopez Argueta s/n. 18071, Granada, Spain Article History: Received 9 November 2009; Revised 1 July 2010; Accepted 19 July 2010

To link to full-text access for this article, visit this link: http://dx.doi.org/10.1016/j.jdeveco.2008.06.009 Byline: Alessandro Nicita Keywords: Household welfare; Mexico; Pass-through; Trade and poverty Abstract: Trade policy literature has for many years emphasized open policies positive impact on economic growth and development. While these results generally hold when measured on averages, empirical evidence suggests that trade liberalization is unlikely to produce beneficial results across all households. This study adds to the literature by providing an analysis of the distributive effects of tariff liberalization in Mexico. The paper examines the effect of tariff liberalization from the perspective of households both as consumers and factor owners allowing for imperfect domestic price transmission. The results indicate the overall positive effect of tariff liberalization masks significant differences in the distribution of gains both across income levels and across geographic regions. Richer households are found to have gained relatively more. Urban areas, as well as Mexican states closest to the United States border, are also found to be larger beneficiaries while southernmost states have been largely bypassed by the effects of tariff liberalization. Those results can be explained not only in relation to the different endowments of the households, but also by the diverse effects on local prices that has resulted from Mexican trade liberalization. Author Affiliation: Development Research Group, Trade (DECRG-TR), The World Bank, 1818 H Street, NW, Washington DC 20433 Mailstop MC 3-303, United States Article History: Received 31 January 2005; Revised 28 May 2008; Accepted 13 June 2008 Article Note: (footnote) [star] The author wishes to thank Jaime de Melo, Jaya Krishnakumar, Marcelo Olarreaga, Guido Porto, Isidro Soloaga, and David Tarr for helpful comments and discussions. I am also sincerely thankful to two outstanding referees for the comments that greatly improved the paper. The author accepts sole responsibility for any errors remaining.