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Research Topics

Microeconomics


Pollution or Crime: The Effect of Driving Restrictions on Criminal Activity
López, Andrea; Malik, Arun; Carrillo, Paul
Working Papers - English - Jul, 2016

Driving restriction programs have been implemented in many cities around the world to alleviate pollution and congestion problems. Enforcement of such programs is costly and can potentially displace policing resources used for crime prevention and crime detection. Hence, driving restrictions may increase crime. To test this hypothesis, this paper exploits both temporal and spatial variation in the implementation of Quito, Ecuador’s Pico y Placa program and evaluates its effect on crime. Both difference-in-difference and spatial regression discontinuity estimates provide credible evidence that driving restrictions can increase crime rates.

Related JEL Codes:
C20 - Single Equation Models; Single Variables: General
Q52 - Pollution Control Adoption Costs; Distributional Effects; Employment Effects
R28 - Government Policy
R48 - Government Pricing; Regulatory Policies; Transportation Planning


Do Nonmonetary Prices Target the Poor? Evidence from a Field Experiment in India
Hoffmann, Bridget
Discussion Papers - English - May, 2016

Monetary price subsidies are often used to increase take-up of health products, but monetary prices may screen out those with the highest returns, the poor. Using willingness to pay (WTP) data from a field experiment in India, this paper determines whether nonmonetary prices better target health products to the poor than monetary prices. It is found that monetary WTP is increasing in income and nonmonetary WTP is weakly decreasing in income. Comparing across price types, nonmonetary WTP falls relative to monetary WTP as income rises. Nonmonetary prices better target the poor than monetary prices (a larger fraction of total demand is poor).

Related JEL Codes:
C93 - Field Experiments
D12 - Consumer Economics: Empirical Analysis
I18 - Government Policy; Regulation; Public Health


The Challenge of Public Capabilities for Successful Productive Development Policies: Hopeless Task or Pragmatic Program?
Fernández-Arias, Eduardo; Stein, Ernesto H.; Cornick, Jorge
Working Papers - English - Mar, 2016

This paper discusses the organizational structure and technical, operational and political capabilities required for successful productive development policies (PDPs). It also discusses how countries can match their PDPs to existing capabilities, as well as expand their capabilities in the long run. The specific difficulties associated with PDPs are also discussed.

Related JEL Codes:
H10 - Structure and Scope of Government: General
H11 - Structure, Scope, and Performance of Government
L50 - Regulation and Industrial Policy: General
O25 - Industrial Policy


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


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