Contents Volume IIIA: Preface. Analytical Tools. Introduction (J. Behrman, T.N. Srinivasan). Data and econometric tools for development analysis (A. Deaton). Human resources: Empirical modeling of household and family decisions (J. Strauss, D. Thomas). Applied general equilibrium models for policy analysis (J.W. Gunning, M. Keyzer). Resources, Technology, and Institutions. Introduction (J. Behrman, T.N. Srinivasan). Savings, credit and insurance (T. Besley). Technological change and technology strategy (R.E. Evenson, L.E. Westphal). Institutions and economic development (J.Y. Lin, J.B. Nugent). Poverty, institutions, and the environmental-resource base (P. Dasgupta, K.-G. Maler) Contents Volume IIIB: Policy Reform, Stabilization, Structural Adjustment and Growth. Introduction (J. Behrman, T.N. Srinivasan). Policy lessons from development experience since the second world war (A. Krueger). Poverty and policy (M. Lipton, M. Ravallion). Power, distortions, revolt and reform in agricultural land relations (H. Binswanger et al.). Human and physical infrastructure: investment and pricing policies in developing countries (E. Jiminez). Structural adjustment, stabilization and policy reform: domestic and international finance (V. Corbo, S. Fischer). Trade and industrial policy reform (D. Rodrik). The contributions of endogenous growth theory to the analysis of development problems: an assessment (P. Bardhan).

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Handbook of development economics

Explanations of poverty, growth and development depend on the assumptions made about individual preferences and the willingness to engage in strategic behaviour. Economic experiments, especially those conducted in the field, have begun to paint a picture of economic agents in developing communities that is at variance with the traditional portrait. We review this growing literature with an eye towards preference-related experiments conducted in the field. We also offer lessons on what development economists might learn from experiments. We conclude by sharing our thoughts on how to conduct experiments in the field and then offer a few ideas for future research.

/pdf/behavioural-development-economics-lessons-from-field-labs-in-12y5wzhags.pdf

Behavioural Development Economics: Lessons from Field Labs in the Developing World

We study the estimation of risk preferences with experimental data and focus on the trade-offs when choosing between two different elicitation methods that have different degrees of difficulty for subjects. We analyze how and when a simpler, but coarser, elicitation method may be preferred to the more complex, but finer, one. Results indicate that the more complex measure has overall superior predictive accuracy, but its downside is that subjects exhibit noisier behavior. Our main result is that subjects’ numerical skills can help better assess this tradeoff: the simpler task may be preferred for subjects who exhibit low numeracy, as it generates less noisy behavior but similar predictive accuracy. For subjects with higher numerical skills, the greater predictive accuracy of the more complex task more than outweighs the larger noise. We also explore preference heterogeneity and provide methodological suggestions for future work.

Eliciting risk preferences: When is simple better?

Policy makers often see entrepreneurship as a panacea for inclusive growth in underdeveloped ‘Base of the Pyramid’ (BOP) regions, but it may also lead to unanticipated negative outcomes such as crime and social exclusion. Our objective is to improve the understanding of how entrepreneurship policies can lead to socially inclusive growth at the BOP. Drawing on data collected from Brazilian tourism destinations with varying entrepreneurship, innovation, and social inclusion policies, we argue that weak institutions coupled with alert entrepreneurs encourage destructive outcomes, especially if entrepreneurship policies are based solely on economic indicators. Policies addressing both economic and social perspectives may foster more productive entrepreneurial outcomes, albeit at a more constrained economic pace. The study extends the related BOP, entrepreneurship, global value chain, and sustainable tourism literatures by examining the poor as entrepreneurs, the role of local innovation, and how entrepreneurship policies generate different social impacts within poor communities.

Entrepreneurship and Innovation at the Base of the Pyramid: A Recipe for Inclusive Growth or Social Exclusion?

Developing countries are increasingly decentralizing forest governance by granting indigenous groups and other local communities formal legal title to land. However, the effects of titling on forest cover are unclear. Rigorous analyses of titling campaigns are rare, and related theoretical and empirical research suggests that they could either stem or spur forest damage. We analyze such a campaign in the Peruvian Amazon, where more than 1,200 indigenous communities comprising some 11 million ha have been titled since the mid-1970s. We use community-level longitudinal data derived from high-resolution satellite images to estimate the effect of titling between 2002 and 2005 on contemporaneous forest clearing and disturbance. Our results indicate that titling reduces clearing by more than three-quarters and forest disturbance by roughly two-thirds in a 2-y window spanning the year title is awarded and the year afterward. These results suggest that awarding formal land titles to local communities can advance forest conservation.

https://www.pnas.org/content/pnas/114/16/4123.full.pdf

Titling indigenous communities protects forests in the Peruvian Amazon.

Latin America and the Caribbean is one of the regions in the world with the greatest ethnic, racial and cultural diversity This diversity is a major asset that holds the key to achieving lasting economic and political stability and constructing a fair, cohesive and democratic society However, the region must overcome a long and divisive history of exclusionary practices that have only left societies poorer, divided, unequal and blind to diversity and its riches This book examines the discrimination and disadvantages endured by the poor, minorities, women, the disabled and people with HIV/AIDS It proposes inclusionary policies to improve access by these groups to the social services and economic and political resources they need

Social inclusion and economic development in Latin America

A partir de estimaciones de crecimiento del gasto per capita, pobreza y desigualdad para los anos 1981, 1993 y 2007, el estudio encuentra que si bien la desigualdad del gasto per capita entre individuos (medida por los coeficientes de Gini o de Theil) muestra una ligera tendencia a la baja, las desigualdades entre grupos (asociadas a procesos desegregacion y polarizacion y vinculadas en la literatura a una mayor conflictividad social) se habrian exacerbado. En particular, se observa una tendencia de largo plazo a la segregacion y polarizacion espacial a favor de las grandes ciudades en contraposicion a la dinamica de ciudades pequenas y pueblos. Esta tendencia hacia una creciente polarizacion espacial va de la mano de una creciente polarizacion entre grupos indigenas y no indigenas. Sin embargo, no se observa una tendencia similar entre grupos con niveles educativos distintos.

Polarización y segregación en la distribución del ingreso en el Perú: trayectorias desiguales

El objetivo del estudio es mostrar como han evolucionado las economias en Pomacanchi y Yanamarca —denominadas originalmente por Daniel Cotlear como “tradicional” y “moderna”)— en las ultimas dos decadas y que rol ha tenido la politica publica, tanto aquella que es comun a ambas zonas —como el cambio de los precios relativos— como aquella que es particular a cada territorio.

Una mirada de largo plazo a la economía campesina en los Andes

En el Peru, pais con una asombrosa diversidad ecologica, con 84 zonas climaticas y paisajes distintos, con selvas tropicales, altas cordilleras y desiertos, puede que el contexto geografico no sea suficiente para explicar las variaciones regionales en ingresos y bienestar, pero si es muy significativo. La pregunta mas importante que este trabajo trata de responder es: que rol juegan las variables geograficas - tanto naturales como antropogenicas - al explicarse las diferencias de gasto per capita entre las diversas regiones del Peru. Como han cambiado estas influencias en el tiempo, a traves de que medios han sido transmitidas, y si el acceso a los activos privados y publicos ha compensado los efectos de una geografia adversa.

¿Cómo Enfrentar Una Geografía Adversa? : el rol de los activos públicos y privados

Muchos estudios han evaluado los beneficios de los caminos rurales concentrandose en la reduccion de costos monetarios y de tiempo en que los pobladores incurren para acceder a mercados de bienes e insumos o a servicios publicos clave. Esta investigacion complementa dicho enfoque con una evaluacion del impacto de este tipo de infraestructura sobre indicadores clave de bienestar como el ingreso y el gasto de los hogares atendidos. Con una muestra de hogares rurales de algunos de los distritos mas pobres del Peru, este estudio compara hogares conectados a caminos rurales rehabilitados con hogares control cuidadosamente escogidos, mediante tecnicas de propensity score matching. Los resultados muestran que las mejoras en la infraestructura rural de transporte pueden tener un impacto positivo sobre los ingresos rurales y su composicion, ya que un camino en mejores condiciones amplia las oportunidades de generacion de ingresos de los hogares, especialmente en actividades de empleo asalariado no agropecuario. El estudio identifica, sin embargo, que esta expansion de ingresos no viene aparejada con un incremento del gasto de consumo de los hogares; aparentemente, esto se debe a que el ingreso adicional se destina al ahorro y no al consumo, via incrementos en el stock de ganado. Ello podria ocurrir porque la mayor accesibilidad a los mercados es percibida como transitoria por los hogares beneficiados por las mejoras en la infraestructura de caminos.

El beneficio de los caminos rurales: ampliando oportunidades de ingreso para los pobres

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