New Economics Papers
on Central and South America
Issue of 2008‒04‒21
three papers chosen by

  1. The Cost of Avoiding Crime: The Case of Bogotá By Alejandro Gaviria; Carlos Medina; Leonardo Morales; Jairo Nuñez
  2. Has Pension Reform Failed Latin America? By Charles Oman; Waldo Tapia
  3. Latin America’s Asian Opportunity By Rolando Avendaño; Gøril Bjerkhol Havro

  1. By: Alejandro Gaviria; Carlos Medina; Leonardo Morales; Jairo Nuñez
    Abstract: We use hedonic price models to estimate the value households are willing to pay to avoid violent crime in the city of Bogotá. We find that households living in the highest socioeconomic level (stratum 6) pay up to 7.2% of their house values in order to prevent average homicide rates from increasing in one standard deviation. Households in stratum 5 pay up to 2.4% of their house values to prevent homicide rates from increasing. The results indicate the willingness to pay for security by households in Bogotá, and additionally, reveal that a pure public good like security, ends up creating urban private markets that auction security. These markets imply different levels of access to public goods among the population, and actually, the exclusion of the poorest. We find as well evidence of negative capitalization of the rate of attacks against life, and positive capitalization of the presence of police authority.
    Date: 2008–04–13
  2. By: Charles Oman; Waldo Tapia
    Abstract: Pension reform in Latin America has helped deepen capital markets, but with mixed results in terms of increasing national savings. Private pension funds have a still untapped potential to help to improve corporate governance of the companies in which they invest.
    Date: 2007–10
  3. By: Rolando Avendaño; Gøril Bjerkhol Havro
    Abstract: Growing trade with China and India offers new export opportunities for Latin America. Latin American countries need to invest in infrastructure and innovation. * This Policy Insights is based on the Latin American Economic Outlook 2008.
    Date: 2007–10

General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.