New Economics Papers
on Central and South America
Issue of 2006‒12‒16
three papers chosen by

  1. El proceso de fluctuación dinámica de la economía colombiana: reconsideraciones teóricas sobre un fenómeno empírico By Omar Fernando Arias Reinoso
  2. Changes in Daytime Hours of Work and Employment in Colombia By Carlos Medina; José Escobar
  3. Global Patterns of Income and Health: Facts, Interpretations, and Policies By Angus Deaton

  1. By: Omar Fernando Arias Reinoso
    Abstract: Este documento ofrece un argumento teórico para comprender el proceso dinámico de fluctuación cíclica de la economía colombiana durante el período 1990-2003. Se contrastan dos hipótesis: la primera, es necesario formular un proceso multiperíodo para describir la dinámica de construcción y formación del capital productivo; y, la segunda, es necesario utilizar funciones de utilidad aditivamente separables que permitan comprender la dinámica de crecimiento del consumo. Se realiza un ejercicio de calibración y análisis econométrico, estructurado sobre la base del modelo de crecimiento equilibrado KP (Kydland y Prescott), con el propósito de explicar la autocorrelación serial del producto agregado de la economía colombiana, y las covarianzas entre la producción agregada con otras variables de series de tiempo.
    Date: 2006–12–04
  2. By: Carlos Medina; José Escobar
    Abstract: We estimate the effect on hourly wages and hours of work, of an increase in the number of hours of work, defined by law as daytime hours of work. To identify the parameter of interest, we estimate difference in difference models. Although we do not know the working hour schedule; we exploit the necessary conditions for the intervention to affect them, to define treatment and comparison groups. We find that wages of males older than 25 working in industry in metropolitan areas decreased more than 11% due to the reform, while females older than 25 working in industry in metropolitan areas reduced their hours of work per week in 3.6 hours. There is evidence, although weaker, of increases in hourly wages for male workers in the other sectors of the economy. This suggests that employers increased labor demand in those sectors. Overall, the reform would have had positive effects on all workers but those in industry.
    Date: 2006–12–01
  3. By: Angus Deaton
    Abstract: People in poor countries live shorter lives than people in rich countries so that, if we scale income by some index of health, there is more inequality in the world than if we consider income alone. Such international inequalities in life expectancy decreased for many years after 1945, and the strong correlation between income and life-expectancy might lead us to hope that economic growth will improve people's health as well as their material living conditions. I argue that the apparent convergence in life expectancies is not as beneficial as might appear, and that, while economic growth is the key to poverty reduction, there is no evidence that it will deliver automatic health improvements in the absence of appropriate conditions. The strong negative correlation between economic growth on the one hand and the proportionate rate of decline of infant and child mortality on the other vanishes altogether if we look at the relationship between growth and the absolute rate of decline in infant and child mortality. In effect, the correlation is between the level of infant mortality and the growth of real incomes, most likely reflecting the importance of factors such as education and the quality of institutions that affect both health and growth.
    JEL: I1 O1 O15
    Date: 2006–12

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