New Economics Papers
on Central and South America
Issue of 2007‒10‒27
three papers chosen by

  1. INFLACIÓN Y PRECIOS RELATIVOS EN COLOMBIA By Andrés Langebaek; Eliana González M.
  3. Demographic Change and the Structure of Wages: A Demand-Theoretic Analysis for Brazil By Ernesto F. L. Amaral; Daniel S. Hamermesh; Joseph E. Potter; Eduardo L.G. Rios-Neto

  1. By: Andrés Langebaek; Eliana González M.
    Abstract: Este trabajo analiza la relación que existe entre las características de la distribución de precios relativos (resumidas en su varianza y su asimetría) y la inflación al consumidor en Colombia. Una vez se constata la presencia de una relación contemporánea positiva y significativa entre estas variables, se analizan las relaciones de causalidad entre ellas y se procede a verificar en qué medida las características de la distribución de precios relativos contribuyen a mejorar los pronósticos de corto plazo de la inflac
    Date: 2007–10–08
  2. By: Jim Engle-Warnick; Javier Escobal; Sonia Laszlo
    Abstract: The lack of adoption of new farming technologies despite known benefits is a well-documented phenomenon in development economics. In addition to a number of market constraints, risk aversion predominates the discussion of behavioral determinants of technology adoption. We hypothesize that ambiguity aversion may also be a determinant, since farmers may have less information about the distribution of yield outcomes from new technologies compared with traditional technologies. We test this hypothesis with a laboratory experiment in the field in which we measure risk and ambiguity preferences. We combine our experiment with a survey in which we collect information on farm decisions and identify market constraints. We find that ambiguity aversion does indeed predict actual technology choices on the farm.
    JEL: O33 O18 C91
    Date: 2007–05
  3. By: Ernesto F. L. Amaral; Daniel S. Hamermesh; Joseph E. Potter; Eduardo L.G. Rios-Neto
    Abstract: With rapidly declining fertility and increased longevity the age structure of the labor force in developing countries has changed rapidly. Changing relative supply of workers by age group, and by educational attainment, can have profound effects on labor costs. Their impacts on earnings have been heavily studied in the United States but have received little attention in Asia and Latin America, where supply shocks are at least as large and have often proceeded less evenly across the economy. We use data on 502 local Brazilian labor markets from Censuses 1970-2000 to examine the extent of substitution among demographic groups as relative supply has changed. The results suggest that age-education groups are imperfect substitutes, so that larger age-education cohorts see depressed wage rates, particularly among more-educated groups. The extent of substitution has increased over time, so that the decreasing size of the least-skilled labor force today is barely raising its remaining members' wages.
    JEL: J23 O15
    Date: 2007–10

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