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Climate Change and Migration: A CGE Analysis for Two Large Urban Regions of Latin America
Chisari, Omar; Miller, Sebastian
Working Papers - English - Mar, 2016

Migration is one of the strategies used by populations to adapt to natural shocks and also to respond to economic policies. Climate change will probably have an impact on the productivity of factors and on the health of the population of the Latin America and Caribbean region, triggering migrations. In addition, policies aimed at reducing emissions (like carbon taxes) will change relative prices and the remuneration of factors and, in turn, will alter the allocation of labor between urban and rural areas. This paper explores the potential quantitative relevance of those population movements using a CGE version of the Harris-Todaro model. Two paradigmatic cases are considered: i) domestic or internal migrations, focusing on the case of Sao Paulo (Brazil) and ii) international migrations, analyzing the displacement of population from Bolivia and Paraguay to Argentina.

Related JEL Codes:
C68 - Computable General Equilibrium Models
J61 - Geographic Labor Mobility; Immigrant Workers
R13 - General Equilibrium and Welfare Economic Analysis of Regional Economies
R23 - Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics

A Framework for Estimating the Incremental Costs of Climate Change in Infrastructure
Clerc, Jacques; Diaz, Manuel
Technical Notes - English - Feb, 2016

The general objective of this study is to review the international literature and best practices to develop a methodological framework capable of quantifying the increase in investments necessary for a traditional standard of living in a world subject to climate change. This methodology is then applied to two case studies: Bolivia and Chile. In particular, the document addresses the economics of adaptation to climate change and offers a summary of the principal impacts of climate change on infrastructure according to the literature. The paper also describes methodological focuses chosen to quantify the impact of climate change on the infrastructure that has been selected for study. On this basis the paper analyzes highways in both in both Chile and Bolivia and irrigation dams in Chile. The paper finally discusses results and presents conclusions.

Related JEL Codes:
H12 - Crisis Management
H54 - Infrastructures; Other Public Investment and Capital Stock
Q47 - Energy Forecasting
Q51 - Valuation of Environmental Effects
Q54 - Climate; Natural Disasters; Global Warming

Firms’ Investment and Savings in Latin America: Stylized Facts from the Enterprise Survey
Kawamura, Enrique; Ronconi, Lucas
Working Papers - English - Dec, 2015

This paper describes the share of investment in fixed capital and working capital financed by retained earnings using a harmonized dataset from the World Bank Enterprise Survey. The sample includes firms across countries in Latin America and the Caribbean. Descriptive statistics are presented for the share of purchases of fixed assets financed with internal funds or retained earnings, the share of working capital financed with internal funds, the ratio between internal funds used for purchasing fixed assets and sales, and annual purchases of fixed assets (as a proportion of annual sales). Also presented are stylized facts exploring how these variables differ by country, firm size, firm age, registration, sector of activity, and ownership. It is found that internal funds are extensively used to finance both purchases of fixed assets and working capital, particularly by smaller firms located in countries with less developed financial markets. Investment in fixed assets represents about 7.5 percent of sales in the region and is significantly higher among larger and registered firms.

Related JEL Codes:
D22 - Firm Behavior: Empirical Analysis
E21 - Consumption; Saving; Wealth
E22 - Capital; Investment; Capacity
G32 - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

Understanding the Determinants of Household Saving: Micro Evidence for Latin America
Amendolaggine, Julian; Gasparini, Leonardo; Garbero, Noelia; Bebczuk, Ricardo N.
Technical Notes - English - Dec, 2015

This paper investigates the main patterns and drivers of the household saving rate in Latin America by assembling a broad dataset of official household surveys for 10 Latin American countries and 27 surveys covering selected years from the 1990s, 2000s and 2010s. Almost half of households display negative saving, which raises suspicions of income underreporting and/or consumption overreporting. The estimations highlight the overriding positive role of income in shaping saving decisions. Government transfers, remittances, self-employment, capitalization pension systems, access to financial services, urban location, and health and education expenses seem to diminish saving, whereas labor formality and homeownership have the opposite effect. In terms of policy implications, the drivers identified are either beyond the realm of direct government intervention or might be modified only in the long run. Moreover, some of these policies entail serious policy trade-offs, as they may boost saving at the expense of other worthy policy goals.

Related JEL Codes:
D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving
E21 - Consumption; Saving; Wealth

Don’t Blame the Messenger: A Field Experiment on Delivery Methods for Increasing Tax Compliance
Scartascini, Carlos; Ortega, Daniel
Working Papers - English - Nov, 2015

There is an ample literature on the determinants of tax compliance. Several field experiments have evaluated the effect and comparative relevance of sending deterrence and moral suasion messages to taxpayers. The effect of different delivery mechanisms, however, has not been evaluated so far. This study conducts a field experiment in Colombia that varies the way the National Tax Agency contacts taxpayers on payments due for income, value added, and wealth taxes. More than 20,000 taxpayers were randomly assigned to a control or one of three delivery mechanisms (letter, email, and personal visit by a tax inspector). Results indicate large and highly significant effects, as well as sizable differences across delivery methods. A personal visit by a tax inspector is more effective than a physical letter or an email, conditional on delivery, but email tends to reach its target more often. Improving the quality of taxpayer contact information can significantly improve the collection of delinquencies.

Related JEL Codes:
C93 - Field Experiments
D03 - Behavioral Economics; Underlying Principles
H26 - Tax Evasion

Results: 6 - 10 of 157

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