nep-lam New Economics Papers
on Central and South America
Issue of 2006‒03‒05
four papers chosen by
Maximo Rossi
Universidad de la Republica

  1. Explaining policy volatility in developing countries By Vatcharin Sirimaneetham
  2. Violencia y Criminalidad en Santa Fe de Bogotá: Posibles determinantes y relaciones de doble causalidad By Javier Alberto Gutiérrez; Dalila Gallo Cubillos
  3. Trade openness and wage distribution in Chile. By Elisa Borghi
  4. Financial Dollarization in Latin America By Robert Rennhack; Masahiro Nozaki

  1. By: Vatcharin Sirimaneetham
    Abstract: This paper studies the causes of policy volatility in developing countries during 1970-1999. To construct composite policy volatility indicators, the paper applies a robust principal components analysis to Washington Consensus policy variables. The results suggest three dimensions of policy volatility: fiscal, macroeconomic and development policies. The paper shows that more stable macroeconomic policy is associated with higher income growth, before turning to the determinants of volatility. Using a Bayesian approach which addresses the model uncertainty problem, the paper finds that macroeconomic policy is more volatile in countries that adopt a presidential system, have weaker political constraints, where government stability is lower, and that are former British colonies. Adopting a parliamentary regime helps to stabilize policy.
    Keywords: policy volatility, economic growth, Bayesian model averaging, principal components.
    JEL: C11 O11 O40
    Date: 2006–01
    URL: http://d.repec.org/n?u=RePEc:bri:uobdis:06/583&r=lam
  2. By: Javier Alberto Gutiérrez; Dalila Gallo Cubillos
    Abstract: En la última década Bogotá ha registrado índices de violencia y criminalidad que la hacen ver como una de las ciudades más inseguras en el ámbito mundial. En efecto, a pesar que Bogotá no ha sido, por fortuna, el centro de operaciones del narcotráfico, lo que ha evitado en cierta medida la generalización del sicariato, y la proliferación de ajustes de cuentas y venganzas entre las mafias, en la capital se ha presentado un fenómeno de violencia que se encuentra relacionado con la delincuencia común, que ha venido afectando la integridad física y material de los individuos. En la capital se observa una serie de manifestaciones de delincuencia que generan sensaciones de inseguridad entre la población, dado los comportamientos violentos y agresivos que asumen los victimarios para llevar a cabo sus acciones delictivas, acciones propias de bandas organizadas que con altos niveles de tecnificación y experiencia han desarrollado mercados ilícitos con matices empresariales. Atentados contra la vida, robo callejero, asalto a residencias, hurto de vehículos, y asaltos bancarios son delitos considerados de mayor impacto por la ciudadanía, tanto por la frecuencia en que suceden, como por la forma en que se presentan. Hechos que afectan a toda la sociedad y en los que concurren una serie de factores que hacen que se intensifique su presencia. Los altos índices de criminalidad registrados en la ciudad, han generado no sólo pérdidas de capital humano, sino costos económicos en sectores como la salud, la justicia y la seguridad. Costos que tienen que ver con las pérdidas en el patrimonio de los particulares y gastos en que incurre el sector público para afrontar el problema. A lo largo del trabajo se evidencia que mayor inversión en salud, educación y asistencia social contribuye de manera significativa a disminuir la tasa de criminalidad y la delincuencia en general, fenómeno que no ocurre con las formas represivas que usualmente se utilizan para disminuir dichas tasas, como mayores gastos en vigilancia y seguridad. La distribución del ingreso es una variable íntimamente asociada con los resultados de criminalidad y violencia.
    Date: 2005–05–30
    URL: http://d.repec.org/n?u=RePEc:col:001056:002412&r=lam
  3. By: Elisa Borghi (CESPRI, Università Bocconi, Milano, Italy)
    Abstract: This article analyses the effect of trade openness, implemented in Chile after 1974, on wage inequality. In the first part, this study analyses inequality and wage distribution in Chile. Workers are grouped in three categories, according to the educational level reached, in order to discriminate between skilled and unskilled labor and calculate the wage gap. The wage gap between workers with a university degree and laborers that completed the secondary school increased during the period analyzed. The wage gap between workers with secondary education completed and laborers that completed the first cycle of education decreased in the period. The second part of this article investigates the relationship between wage inequality dynamics of different groups of workers and trade openness. The empirical results suggest that trade liberalization increased wage differences between workers with a university degree and workers with a high school degree, while it did not affect the decreasing wage gap between laborers with secondary school completed and laborers with primary school completed. This paper is made up of six sections. Section I introduces the analysis. Section II describes briefly the trade liberalization process. Section III analyses the wage distribution in Chile and a measure of the wage gap between more educated and less educated workers is obtained. Section IV presents some theoretical aspects. Section V analyses the effects of the trade liberalization on the wage gap, considering different groups of workers, according to the educational level. Section VI concludes.
    Keywords: Trade openness; Inequality; Skill premium
    JEL: J31 F16
    Date: 2005–09
    URL: http://d.repec.org/n?u=RePEc:cri:cespri:wp173&r=lam
  4. By: Robert Rennhack; Masahiro Nozaki
    Keywords: Dollarization , Latin America , Monetary policy , Credit , Flexible exchange rates , Exchange rate depreciation ,
    Date: 2006–01–19
    URL: http://d.repec.org/n?u=RePEc:imf:imfwpa:06/7&r=lam

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