nep-lam New Economics Papers
on Central and South America
Issue of 2009‒11‒21
three papers chosen by
Maximo Rossi
University of the Republic

  1. Income Distribution under Latin America’s New Left Regimes By Giovanni Andrea cornia
  2. Do Environmental Services Buyers Prefer Differentiated Rates? A Case Study from the Colombian Andes By Rocío del Pilar Moreno-Sánchez; Jorge Higinio Maldonado; Sven Wunder
  3. Un modelo de simulación del Régimen Pensional de Ahorro Individual con Solidaridad en Colombia. By Mauricio Arias; Juan Carlos Mendoza

  1. By: Giovanni Andrea cornia (Università degli Studi di Firenze, Dipartimento di Scienze Economiche)
    Abstract: This paper reviews the decline in income inequality that has taken place over 2002-2007 in most Latin American countries against the background of its steady increase over 1980-2002. The paper analyzes then the factors that could explain this trend reversal. It focuses in particular on favorable external conditions, cyclical factors, improvements in the distribution of educational achievements and the subsequent drop in skill-premium, and changes in macroeconomic and social policies introduced in several countries, particularly by a growing number of left-of-centre governments which have come to power during the last decade. An econometric test for the years 1990-2007 indicate that, in addition to a favorable business cycle and external conditions, a decline in skill premium and the new policy model of fiscally prudent social-democracy which is emerging this decade in much of Latin America impacted favorably the distribution of income. If this approach will survive the current crisis, much of the recent inequality decline is likely to become permanent.
    Keywords: income inequality, human capital inequality, external conditions, policy regimes, Latin America.
    JEL: D31 E6 H53 I28 I38
    Date: 2009
  2. By: Rocío del Pilar Moreno-Sánchez; Jorge Higinio Maldonado; Sven Wunder
    Abstract: Flat user fees in payment for environmental services (PES) schemes promote administrative ease, and are sometimes perceived as egalitarian. However, when environmental service (ES) buyers are heterogeneous in their income and water consumption levels, this may not be optimal, as total payments become too low and services are under-supplied. This paper identifies ES buyer preferences and estimates their willingness to pay (WTP) differentiated fees in an ongoing PES initiative in an Andean watershed in Colombia. Small, flat user payments have recently been introduced to implement incipient watershed protection upstream. Environmental service users fall into two highly heterogeneous categories: smallholder peasants and owners of recreational houses. We performed a contingent valuation analysis in a representative stratified sample of 218 user households. For improved water services, ES buyers on average were willing to pay a monthly US$1 premium over current flat PES rates. Owners of recreational houses were willing to pay about US$1.50 more; smallholders only US$0.5. 85% of ES buyers also agree to pay differentiated fees. Of these, 41% would prefer fees differentiated by water consumption, 23% by household income, 30% criteria combination, and 6% by other criteria. Spatial variables, such as distance to the water distribution point and to the town center, importantly influenced WTP. The results may help designing users-driven PES schemes in accordance with efficiency and equity objectives.
    Date: 2009–11–06
  3. By: Mauricio Arias; Juan Carlos Mendoza
    Abstract: Con la reforma de 1993, en Colombia se dio vía libre a un sistema general de pensiones de carácter mixto, compuesto por el Régimen Solidario de Prima Media con Prestación Definida y el Régimen de Ahorro Individual con Solidaridad. El primero representa el régimen tradicional de carácter público y de beneficio definido, mientras que el segundo corresponde al sistema privado de capitalización individual. Este documento presenta un modelo de simulación que permite proyectar la dinámica del Régimen de Ahorro Individual con Solidaridad. Con este modelo se construye un marco teórico de referencia que determina de forma detallada, el comportamiento de cada una de las variables que intervienen en el funcionamiento de este régimen. El modelo es lo suficientemente simple para que sea fácilmente computable, por lo cual se realiza una aplicación numérica que incorpora la información disponible para Colombia. De esta forma, se proyecta la dinámica del régimen durante las próximas cuatro décadas y se evalúa su comportamiento ante la variación de algunos de sus principales determinantes.
    Keywords: Pensiones; Sistema general de pensiones; Régimen de Ahorro Individual con Solidaridad; Fondo de garantía de pensión mínima. Classification JEL: G23; H55; C15.

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