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on Development |
| By: | Feng, Juan; Lichtenberg, Erik; Ding, Chengri |
| Abstract: | We examine how the system of “federalism, Chinese style” functions in the context of land allocation. China’s land laws give provision of land a central role in local officials’ growth promotion strategies. Requisitions of farmland by local authorities have engendered significant rural unrest. In response, the central government has attempted to re-establish control over the pace of urban land expansion by enacting regulations limiting conversion of rural land to urban uses. We derive theoretically the conditions under which non-compliance with such regulations is optimal. An econometric investigation shows that legal restrictions on farmland conversion had no effect on rates of farmland loss but did limit urban spatial growth rates in some regions. Our econometric evidence suggests very limited enforcement of those legal limits on farmland conversion. |
| Keywords: | China, urbanization, land development, farmland conversion, land use, decentralization, fiscal federalism, Community/Rural/Urban Development, International Development, Land Economics/Use, Public Economics, R52, R14, Q15, H77, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:149669&r=dev |
| By: | Nose, Manabu; Yamauchi, Futoshi |
| Abstract: | Did the rise in food prices have a long-term impact on agricultural production? Using household-level panel data from seven provinces of Indonesia, we examine whether the 2007-08 food price crisis triggered farm investments. Empirical results show that (i) the food price crisis created a forward-looking incentive to invest, which can increase farm productivity in the long run, (ii) the expectation formation plays an important role in determining the impact, and (iii) the impact differs by the initial wealth; the positive price shock relaxed liquidity constraints among the poor. Implications on inequalities in income and productivity are discussed. |
| Keywords: | Productive investment, Expectation, Anticipated shock, Liquidity constraint, Community/Rural/Urban Development, Risk and Uncertainty, D22, O12, Q12, |
| Date: | 2013–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:149673&r=dev |
| By: | Gilligan, Daniel O.; Roy, Shalini |
| Abstract: | Recent evidence shows that early childhood is a critical period for investments in human capital and that micronutrient deficiency and inadequate stimulation are major causes of impaired child development in poor countries. Transfers to households linked to preschool participation may improve cognitive and noncognitive development in early childhood, but there is limited evidence, all of it from Latin America. Using a randomized controlled trial design in Karamoja, Uganda, we examine the impacts of two transfer modalities – cash transfers or multiple-micronutrient-fortified food transfers – linked to preschool enrollment on child cognitive and noncognitive development. We find that food transfers have no significant impacts, but cash transfers cause significant increases in cognitive measures, by about 9 percentage points relative to the control group. We also explore mechanisms and find plausible evidence for cognitive impacts of cash through both a nutrition pathway (cash improves diet quality leading to reduction in anemia, implying improved cognition) and a stimulation pathway (cash increases contributions to preschool teachers leading to improved preschool capacity and higher child preschool attendance, implying higher quantity and quality of exposure to stimulation). We find that food has no significant impacts on these intermediate outcomes and consider which contextual factors may lead to its limited effects relative to cash. We also find indications that the food and cash treatments may have different distributional impacts. Results suggest that although the food treatment has no average impacts, it favors children with initially higher cognitive development, potentially causing slight increases in inequality among treated children. Meanwhile the cash treatment, which does have significant impacts on average, favors children with initially lower cognitive development, potentially reducing inequality among treated children. |
| Keywords: | Food Consumption/Nutrition/Food Safety, Food Security and Poverty, Labor and Human Capital, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:149822&r=dev |
| By: | Hoddinott, John; Sandstrom, Susanna; Upton, Joanna |
| Abstract: | We assess the relative impacts of receiving cash versus food transfers using a randomized design. Drawing on data collected in eastern Niger, we find that households randomized to receive a food basket experienced larger, positive impact on measures of food consumption and diet quality than those receiving the cash transfer. Other outcomes showed greater variation by season. Receiving food reduced the use of a number of coping strategies but this effect was more pronounced during the height of the lean season. Households receiving cash spent more money repairing their dwellings prior to the start of the rainy season and spent more on agricultural inputs during the growing season. Less than five percent of food was sold or exchanged for other goods. Food and cash were delivered with the same degree of frequency and timeliness but the food transfers cost 15 percent more to implement. |
| Keywords: | cash and food transfers, food security, Niger, randomized intervention, Consumer/Household Economics, Food Consumption/Nutrition/Food Safety, Food Security and Poverty, International Development, D04, I38, O12, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:149919&r=dev |
| By: | Musumba, Mark; Mjelde, James |
| Abstract: | The flow of remittances can affect poverty rates, development, and investments in the receiving country and households. Using World Bank survey data from three countries, Ethiopia, Uganda, and Kenya, this research addresses the senders’ and recipients’ characteristics may affect remittance amounts. The recipients’ household income and living in a rural area tend to increase the amount of the remittance. Senders living in North America tend to send larger amounts than those living in Africa or Asia. Ethiopia and Uganda recipients tend to receive a larger amount than those living in Kenya. The effects of characteristics on remittance amounts are very similar between the countries. Only, Kenya appears to differ in three of the eighteen characteristics. |
| Keywords: | remittances, Uganda, Ethiopia, Kenya, Community/Rural/Urban Development, Consumer/Household Economics, International Development, O01, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150123&r=dev |
| By: | Baylis, Kathy; Fan, Linlin; Nogueira, Lia |
| Abstract: | China underwent tremendous agricultural market reforms in the 1990s prior to its accession to the WTO, drastically decreasing domestic market distortions. We ask whether these reforms have led to agricultural commercialization and have improved the welfare of rural Chinese households measured by household average share of calories from non-staples. We identify the effect of liberalization by calculating the degree to which local markets reflect world prices. We find that both undernourished and nourished rural households have increased their agricultural and off-farm income in response to market liberalization. Income increases households' nutrition at a diminishing marginal rate, especially the off-farm income. |
| Keywords: | market liberalization, household food security, rural China, Community/Rural/Urban Development, Consumer/Household Economics, Food Security and Poverty, International Development, I32, O12, O24, Q18, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150203&r=dev |
| By: | Foltz, Jeremy; Gars, Jared; Özdoğan, Mutlu; Simane, Belay; Zaitchik, Ben |
| Abstract: | Long term increases in rural incomes and productivity in Ethiopia are threatened by weather uctua- tions. Changes in weather variability and the number of extreme weather events (specically droughts) has the capacity to undermine development eorts if it translates into decreased food availability and incomes. This study integrates downscaled daily weather data with household surveys to study the impact of weather and temperature on rural household welfare in Ethiopia. Our panel data economet- ric approach is one of the rst to measure the impacts of weather on household consumption directly. Generally, we nd that food and non-food consumption are a function of weather in Ethiopia, and that this link is lessening over time but more pronounced for poor households. Evidence from these survey villages suggests that being in a vulnerable area may not actually result in being worse o relative to being poor in a non vulnerable area. These ndings have implications for focusing climate mitigation strategies on the poor regardless of location rather than just the poorest regions. |
| Keywords: | Consumer/Household Economics, International Development, |
| Date: | 2013 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea13:150298&r=dev |
| By: | Itismita Mohanty (NATSEM, University of Canberra); Anu Rammohan (Economics, The University of Western Australia) |
| Abstract: | The aim of this paper is to analyse factors that influence schooling outcomes among children in India, specifically focusing on the role of gender. Using the nationally representative Indian National Family Health Survey 2005-06,our analysis finds statistically significant evidence of male advantage both in schooling attendance as well as years of schooling. However, using a cluster fixed-effects model, our analysis finds that within a cluster, contingent on being enrolled, girls spend more years in school relative to boys. Other results show that parental schooling has a positive and statistically significant impact on child schooling. There is also statistically significant wealth effect, community effect and regional disparities between states in India. |
| Keywords: | child schooling; cluster fixed effects; household fixed effects; gender bias |
| JEL: | J16 J24 O15 I20 D13 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:cba:wpaper:wp1121&r=dev |
| By: | Debebe, Z.Y.; Mebratie, A.D.; Sparrow, R.A.; Abebaw, D.; Dekker, M.; Alemu, G.; Bedi, A.S. |
| Abstract: | Based on household survey data and event history interviews undertaken in a highly shock prone country, this paper investigates which shocks trigger which coping responses and why? We find clear differences in terms of coping strategies across shock types. The two relatively covariate shocks, that is, economic and natural shocks are more likely to trigger reductions in savings and in food consumption while the sale of assets and borrowing is less common. Coping with relatively idiosyncratic health shocks is met by reductions in savings, asset sales and especially a far greater reliance on borrowing as compared to other shocks. Reductions in food consumption, a prominent response in the case of natural and economic shocks is notably absent in the case of health shocks. Across all shock types, households do not rely on gifts from family and friends or on enhancing their labour supply as coping approaches. The relative insensitivity of food consumption to health shocks based on the shocks-coping analysis presented here is consistent with existing work which examines consumption insurance. However, our analysis leads to a different interpretation. We argue that this insensitivity should not be viewed as insurability of food consumption against health shocks but rather as an indication that a reduction in food consumption is not a viable coping response to a health shock as it does not provide cash to meet health care needs. |
| Keywords: | Ethiopia;shocks;adversity of shocks;coping response;health shocks |
| Date: | 2013–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:dgr:euriss:560&r=dev |
| By: | Douglas Almond; Hongbin Li; Shuang Zhang |
| Abstract: | Following the death of Mao in 1976, abandonment of collective farming lifted millions from poverty and heralded sweeping pro-market policies. How did China’s excess in male births respond to rural land reform? In newly-available data from over 1,000 counties, a second child following a daughter was 5.5 percent more likely to be a boy after land reform, doubling the prevailing rate of sex selection. Mothers with higher levels of education were substantially more likely to select sons than were less educated mothers. The One Child Policy was implemented over the same time period and is frequently blamed for increased sex ratios during the early 1980s. Our results point to China’s watershed economic liberalization as a more likely culprit. |
| JEL: | I15 I25 I32 J13 K11 N35 P26 Q18 |
| Date: | 2013–06 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:19153&r=dev |
| By: | Nicola Branson; Murray Leibbrandt |
| Abstract: | In this paper we include measures of school quality in regressions determining the labour market premiums to education level. We use the matric exemption score and the pupil/teacher ratio of the respondents’ closest school during childhood as proxies for education quality. We find that the employment and earnings premiums to education level are robust to the inclusion of these quality measures. Moreover, there is a significant direct relationship between our quality measures and earnings, controlling for education level. Increasing the matric exemption score by 10 percentage points increases earnings, on average, by 8% and decreasing the pupil/teacher ratio by one learner is associated with a 1% increase in earnings. No significant relationship is found between the school quality measures and employment.<P>This Working Paper relates to the 2013 OECD Economic Survey of South Africa, www.oecd.org/eco/surveys/listofeconomicsurveysofsouthafrica.htm.<P>Qualité de l'éducation et rendement sur le marché du travail en Afrique du Sud<BR>Dans cette étude nous incluons des variables de qualité de l’éducation dans les régressions déterminant le rendement sur le marché du travail des niveaux d’éducation atteints. En guise de mesure de la qualité, nous utilisons le taux de réussite au diplôme final d’études secondaires ainsi que le ratio élève/enseignant de l’école la plus proche du lieu de résidence de l’individu sondé durant sa jeunesse. Nous trouvons que les effets des niveaux éducatifs sur les salaires et les probabilités d’avoir un emploi sont robustes à l’inclusion de ces variables de qualité de l’éducation. De plus, il y a une relation directe significative entre nos variables de qualité et les salaires après contrôle pour le niveau éducatif atteint. Augmenter le taux de réussite de l’école de 10 points de pourcentage augmente les salaires d’en moyenne 8%, tandis que diminuer le ratio élève-enseignant d’un élève augmente les salaires de 1%. Aucune relation robuste n’est exhibée entre les mesures de qualité de l’éducation et l’emploi.<P> Ce Document de travail se rapporte à l’Étude économique de l’OCDE de l’Afrique du Sud, www.oecd.org/fr/eco/etudeseconomiquespar pays/listofeconomicsurveysofsouthafrica. htm. |
| Keywords: | education, employment, earnings, South Africa, education quality, emploi, éducation, salaires, Afrique du Sud, qualité de l'éducation |
| JEL: | I24 J21 J31 |
| Date: | 2013–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1021-en&r=dev |
| By: | Fabrice Murtin |
| Abstract: | South Africa has achieved remarkable progress in educational attainment relative to other emerging countries, but the quality of basic education for a large fraction of the Black African population is still very low. This study identifies several hurdles to the upgrading of basic education quality, such as the lack of investment in school infrastructure and learning materials in disadvantaged areas, uneven administrative capacity at the local level, low teacher quality and poor teaching of English among Black Africans. Bold action is recommended to empower schools with more physical resources, more competent school leadership and an accountable teacher workforce. Skill mismatches of supply and demand on the labour market may be further addressed by vocational education reforms and an alleviation of credit constraints at the tertiary level.<P>Améliorer la qualité de l'éducation en Afrique du Sud<BR>L’Afrique du Sud a accompli des progrès remarquables en matière d’éducation par rapport à d’autres pays émergents, mais la qualité de l’éducation de base reste très faible pour une large partie de la population africaine noire. Cette étude met en évidence plusieurs obstacles à l’amélioration de la qualité de l’éducation de base, notamment le manque d’investissement dans les infrastructures scolaires et les matériels pédagogiques dans les zones défavorisées, des capacités administratives inégales au niveau local, une mauvaise qualité des enseignants et un enseignement médiocre de l’anglais aux élèves africains noirs. Il est recommandé de prendre des mesures audacieuses pour doter les écoles de davantage de ressources matérielles, d’une équipe de direction plus compétente et d’un corps enseignant responsable. L’inadéquation des compétences entre l’offre et la demande sur le marché du travail peut en outre être traitée par des réformes concernant l’enseignement professionnel et par l’allègement des contraintes de crédit dans l’éducation supérieure. |
| Keywords: | education, school leadership, skills mismatch, education quality, teacher, teacher accountability, test score, return to schooling, éducation, Rendements de l’éducation, qualité de l'éducation, inadéquation des compétences, enseignant, responsabilité des enseignants, test scolaire, direction d’école |
| JEL: | I20 I24 I25 I28 J24 |
| Date: | 2013–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1056-en&r=dev |
| By: | Tran, Tuyen; Vu, Huong |
| Abstract: | The relationship between farmland loss, nonfarm diversification and inequality has been well-documented in the literature. However, no study has quantified this relationship. Using a dataset from a 2010 field survey involving 477 households, this study has contributed to the literature by providing the first econometricevidence about the impacts of farmland loss (due to urbanization and industrialization) onnonfarm diversification and income quality among households in Hanoi's peri-urban areas. Our results show that under the impact of farmland loss, households have actually diversified their income through various nonfarm activities,notably in informal wage work. In addition, while farmland loss has reduced the share of farm income, resulting in an increase in income inequality,it has also increased the share of informal wage income, leading to a decrease in income inequality |
| Keywords: | Farmland acquisition, formal wage income, fractional multinomial logit and Gini decomposition |
| JEL: | Q12 |
| Date: | 2013–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:47596&r=dev |
| By: | Fitzsimons, Emla; Mesnard, Alice |
| Abstract: | This paper investigates how the permanent departure of the father from a household affects children's school enrollment and work participation in rural Colombia. The results indicate that the permanent departure of the father decreases children's school enrollment by approximately 5 percentage points and increases child labor by 3 percentage points. This paper explores the rollout of a conditional-cash-transfer program during the period of study and shows that this program counteracts these adverse effects. When coupled with other evidence, this finding strongly suggests that the channel through which the father's departure most affects children is by reducing the income of very poor households, which tightens their liquidity constraints. This finding also highlights the important safety-net role played by welfare programs with respect to disadvantaged households, particularly because these households are unlikely to have formal or informal mechanisms with which to insure themselves against such vagaries. |
| Keywords: | Labor Policies,Street Children,Primary Education,Youth and Governance,Population Policies |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6476&r=dev |
| By: | Henderson, J. Vernon; Roberts, Mark; Storeygard, Adam |
| Abstract: | In the past dozen years, a literature has developed arguing that urbanization has unfolded differently in post-independence Sub-Saharan Africa than in the rest of the developing world, with implications for African economic growth overall. While African countries are more urbanized than other countries at comparable levels of income, it is well-recognized that total and sector gross domestic product data are of very low quality, especially in Africa. When instead viewed from the perspective of effective technology, as suggested in endogenous growth frameworks (and as proxied by educational attainment), the African urbanization experience overall matches global patterns. There are differences, however, at the sector level. Agricultural trade effects that improve farm prices deter African urbanization, while they promote urbanization elsewhere. Potential reasons include differences in land ownership institutions and the likelihood of agricultural surpluses being invested in urban production. Positive shocks to modern manufacturing spur urbanization in the rest of the developing world, but effects are dependent on the level of development. Thus many countries in Africa, with their lower level of development, do not respond to these shocks. Finally, historical indicators of the potential for good institutions promote urbanization both inside and outside Africa. |
| Keywords: | Population Policies,Emerging Markets,Economic Theory&Research,Environmental Economics&Policies,E-Business |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6481&r=dev |
| By: | Knight, John |
| Abstract: | This paper provides an overview of research on income inequality in China over the period of economic reform. It presents the results of two main sources of evidence on income inequality and, assisted by various decompositions, explains the reasons income inequality has increased rapidly and the Gini coefficient is now almost 0.5. This paper evaluates the degree of income inequality from the perspectives of people's subjective well-being and government concerns. It poses the following question: has income inequality peaked? It also discusses the policy implications of the analysis. The concluding comments of this paper propose a research agenda and suggest possible lessons from China's experience that may be useful for other developing countries. |
| Keywords: | Rural Poverty Reduction,Inequality,Poverty Impact Evaluation,Services&Transfers to Poor,Labor Policies |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6482&r=dev |
| By: | De, Prabir; Raihan, Selim; Ghani, Ejaz |
| Abstract: | India and Pakistan, the two largest economies in South Asia, share a common border, culture and history. Despite the benefits of proximity, the two neighbors have barely traded with each other. In 2011, trade with Pakistan accounted for less than half a percent of India's total trade, whereas Pakistan's trade with India was 5.4 percent of its total trade. However, the recent thaw in India-Pakistan trade relations could signal a change. Pakistan has agreed to grant most favored nation status to India. India has already granted most favored nation status to Pakistan. What will be the gains from trade for the two countries? Will they be inclusive? Is most favored nation status a panacea? Should the granting of most favored nation status be accompanied by improvements in trade facilitation, infrastructure, connectivity, and logistics to reap the true benefits of trade and to promote shared prosperity? This paper attempts to answer these questions. It examines alternative scenarios on the gains from trade and it finds that what makes most favored nation status work is the trade facilitation that surrounds it. The results of the general equilibrium simulation indicate Pakistan's most favored nation status to India would generate larger benefits if it were supported by improved connectivity and trade facilitation measures. In other words, gains from trade would be small in the absence of improved connectivity and trade facilitation. The idea of trade facilitation is simple: implement measures to reduce the cost of trading across borders by improving infrastructure, institutions, services, policies, procedures, and market-oriented regulatory systems. The returns can be huge, even with modest resources and limited capacity. The dividends of trade facilitation can be shared by all. |
| Keywords: | Economic Theory&Research,Transport Economics Policy&Planning,Trade Policy,Free Trade,Emerging Markets |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6483&r=dev |
| By: | Dang, Hai-Anh; Rogers, Halsey |
| Abstract: | During Vietnam's two decades of rapid economic growth, its fertility rate has fallen sharply at the same time that its educational attainment has risen rapidly -- macro trends that are consistent with the hypothesis of a quantity-quality tradeoff in child-rearing. This paper investigates whether the micro-level evidence supports the hypothesis that Vietnamese parents are in fact making a tradeoff between quantity and quality of children. The paper presents new measures of household investment in private tutoring, together with traditional measures of household investments in education. It analyzes data from the Vietnam Household Living Standards Surveys and instruments for family size using the distance to the nearest family planning center. The estimation results show that families do indeed invest less in the education of school-age children who have larger numbers of siblings. This effect holds for several indicators of educational investment -- including general education expenditure and various measures of private tutoring investment -- and is robust to various definitions of family size and model specifications that control for community characteristics as well as the distance to the city center. Finally, the results suggest that tutoring may be a better measure of quality-oriented household investments in education than traditional measures like enrollment, which are arguably less nuanced and household-driven. |
| Keywords: | Population Policies,Teaching and Learning,Primary Education,Population&Development,Education For All |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6487&r=dev |
| By: | Cuesta, Jose |
| Abstract: | Existing evidence forms a body of"conventional wisdom"on the redistributive impact of fiscal policies that has been recently questioned by more disaggregated analyses. This paper proposes an additional extension to the traditional benefit incidence analysis to explore further the extent to which the conventional wisdom holds, as well as to provide effective guidance in fiscal decision making. The benefit incidence analysis extension includes linking fiscal policies with the concept of equality of opportunities. The paper describes this approach and showcases the application of the proposed"opportunity incidence analysis"to six pilot countries: Liberia, Cote d’Ivoire, Zambia, Tajikistan, Thailand, and Paraguay. Three main contributions stand out: first, opportunity incidence analysis complements traditional benefit incidence analysis by applying its mechanics to a more forward looking concept of equal opportunity. Second, opportunities can be used to target public spending with higher precision. Third, micro-simulations can be used to understand the cost-effectiveness of alternative spending interventions that seek to improve equality of opportunities. All of these results complement the diagnosis produced by traditional incidence analysis and provide useful information to guide specific policy decisions. |
| Keywords: | Access to Finance,Subnational Economic Development,Public Sector Expenditure Policy,Health Monitoring&Evaluation,Health Systems Development&Reform |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6489&r=dev |
| By: | Kilic, Talip; Zezza, Alberto; Carletto, Calogero; Savastano, Sara |
| Abstract: | Land area is a fundamental component of agricultural statistics, and of analyses undertaken by agricultural economists. While household surveys in developing countries have traditionally relied on farmers'own, potentially error-prone, land area assessments, the availability of affordable and reliable Global Positioning System (GPS) units has made GPS-based area measurement a practical alternative. Nonetheless, in an attempt to reduce costs, keep interview durations within reasonable limits, and avoid the difficulty of asking respondents to accompany interviewers to distant plots, survey implementing agencies typically require interviewers to record GPS-based area measurements only for plots within a given radius of dwelling locations. It is, therefore, common for as much as a third of the sample plots not to be measured, and research has not shed light on the possible selection bias in analyses relying on partial data due to gaps in GPS-based area measures. This paper explores the patterns of missingness in GPS-based plot areas, and investigates their implications for land productivity estimates and the inverse scale-land productivity relationship. Using Multiple Imputation (MI) to predict missing GPS-based plot areas in nationally-representative survey data from Uganda and Tanzania, the paper highlights the potential of MI in reliably simulating the missing data, and confirms the existence of an inverse scale-land productivity relationship, which is strengthened by using the complete, multiply-imputed dataset. The study demonstrates the usefulness of judiciously reconstructed GPS-based areas in alleviating concerns over potential measurement error in farmer-reported areas, and with regards to systematic bias in plot selection for GPS-based area measurement. |
| Keywords: | E-Business,Statistical&Mathematical Sciences,Economic Theory&Research,Science Education,Scientific Research&Science Parks |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6490&r=dev |
| By: | Auriol, Emmanuelle; Biancini, Sara |
| Abstract: | Power market integration is analyzed in a two-country model with nationally regulated firms and costly public funds. If the generation costs between the two countries are too similar, negative business stealing outweighs efficiency gains so that the subsequent integration welfare decreases in both regions. Integration is welfare enhancing when the cost difference between two regions is large enough. The benefits from export profits increase the total welfare in the exporting country, whereas the importing country benefits from lower prices. In this case, market integration also improves incentives to invest compared to autarky. The investment levels remain inefficient, however, especially for transportation facilities.<BR>Free riding reduces incentives to invest in these public-good components of the network, whereas business stealing tends to decrease the capacity to finance new investment. |
| Keywords: | Transport Economics Policy&Planning,Economic Theory&Research,Debt Markets,Markets and Market Access,Emerging Markets |
| Date: | 2013–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6494&r=dev |