New Economics Papers
on Central and South America
Issue of 2014‒02‒15
six papers chosen by

  1. La Educación Superior en Colombia: Situación Actual y Análisis de Eficiencia By Ligia Alba Melo B.; Jorge Enrique Ramos F.; Pedro Oswaldo Hernández S.
  2. A spatial econometric approach to spillover effects between protected areas and deforestation in the Brazilian Amazon By Sonia SCHWARTZ; Jean Galbert ONGONO OLINGA; Eric Nazindigouba KERE; Pascale COMBES MOTEL; Jean-Louis COMBES; Johanna CHOUMERT; Ariane Manuela AMIN
  3. The Microfinance Sectors in Peru and in Mexico: Why have they followed different paths? By Pablo Cotler; Giovanna Aguilar
  4. Fiscal Sustainability and Economic Growth in Bolivia By Rodolfo Mendez-Marcano; Jose Pineda
  5. Financial Frictions and the Transmission of Foreign Shocks in Chile By Javier García-Cicco; Markus Kirchner; Santiago Justel
  6. More than You Can Handle Decentralization and Spending Ability of Peruvian Municipalities By Loayza, Norman V.; Rigolini , Jamele; Calvo-Gonzlez, Oscar

  1. By: Ligia Alba Melo B.; Jorge Enrique Ramos F.; Pedro Oswaldo Hernández S.
    Abstract: La investigación tiene como objetivo revisar de manera general la situación de la educación superior en Colombia y evaluar los niveles de eficiencia de los diferentes programas e instituciones del país. Para el análisis de eficiencia se utilizan técnicas de frontera estocástica y los resultados de las pruebas Saber Pro. La estimación evalúa el impacto tanto de variables asociadas al personal docente y a la infraestructura de las instituciones, como de algunos factores de entorno que no están directamente bajo el control de las instituciones. Los resultados indican que existe una respuesta positiva y significativa entre el logro académico y las variables de infraestructura y las asociadas al personal docente. Los resultados igualmente resaltan la importancia de los factores de entorno para explicar el desempeño de las instituciones de educación superior, sugiriendo que aunque muchas instituciones educativas tienen un margen para mejorar sus niveles de eficiencia, podrían estar restringidas por la influencia de los factores socioeconómicos de los estudiantes.
    Keywords: Educación Superior, Análisis de eficiencia, Frontera estocástica. Classification JEL: I21, I23, D24
    Date: 2014–02
  2. By: Sonia SCHWARTZ (Université d'Auvergne); Jean Galbert ONGONO OLINGA; Eric Nazindigouba KERE; Pascale COMBES MOTEL; Jean-Louis COMBES; Johanna CHOUMERT; Ariane Manuela AMIN
    Abstract: Protected areas are increasingly used as a tool to fight against deforestation. This paper presents new evidence on the spillover effects that occur in the decision to deforest and the creation of protected areas in local administrative entities in Brazilian Legal Amazon over the 2001-2011 period. We also highlight the interdependence between these two decisions. We proceed in two steps. First, we assumed that protected areas are created to stop the negative effects of deforestation on biodiversity. In order to control for the non-random location of protected areas, biodiversity indicators are used as excluded instruments. This model is estimated using a spatial model with instrumental variables. Second, a simultaneous system of spatially interrelated cross sectional equations is used to take into account the interdependence between the decision to deforest and the creation of protected areas. Our results show (i) that deforestation activities of neighboring municipalities are complements and that (ii) there is evidence of leakage in the sense that protected areas may shift deforestation to neighboring municipalities. The net effect of protected areas on deforestation remains however negative; it is moreover stable across two sub-periods. Our results confirm the important role of protected areas to curb deforestation and thereby biodiversity erosion. Moreover, they show that strategic interactions deserve attention in the effectiveness of conservation policies.
    Keywords: Protected areas; deforestation; spatial interactions; simultaneous equations; Brazil; Amazon
    JEL: C31 Q57 Q23
    Date: 2014
  3. By: Pablo Cotler (Department of Economics, Universidad Iberoamericana, Mexico City. Mexico); Giovanna Aguilar
    Abstract: This paper explores some of the reasons that may help explain why the microfinance sectors in Peru and in Mexico have developed so differently. Whereas in Peru, this sector is characterized by financially sustainable institutions operating in a competitive environment with an efficient regulation; in Mexico, the microfinance industry is uncompetitive, regulation is poorly enforced and most of financial institutions are small and underdeveloped. We argue that these differences are partly explained by the approach taken by the authorities. Whereas in Peru microfinance related policies were designed to aid the establishment of sustainable institutions offering a range of financial services, in Mexico they were primarily concerned with the provision of loans Creation date: 2011
  4. By: Rodolfo Mendez-Marcano; Jose Pineda
    Abstract: In this paper we analyze the role played by fiscal sustainability shocks on the Bolivian economic growth performance. To do this, we impose restrictions on a VAR for the Bolivian economy that allow us to identify fiscal sustainability shocks. We argue that imposing long run identification restrictions in our tructural VAR is a new (applied to fiscal issues) and useful way to identify the macroeconomic impact of shocks on fiscal sustainability. Our results show a significant lost in the level of GDP in the Bolivian economy as a consequence of the sequence of adverse fiscal sustainability shocks this economy has experienced. Although, fiscal sustainability shocks have not permanent effect on Bolivia’s economic growth, the fact that adverse fiscal sustainability shocks has occurred during the period studied (in a significant way at least during the late 70s early 80s and at the late 90s early 2000s) have negatively affected Bolivian economic growth. Our results also show that inflation has been affected by fiscal sustainability shocks, especially the adverse shocks experienced during the period from 1977 to 1986, which ended in the hyperinflation in 1985.
    Keywords: SVAR; identifying restrictions; small open economies; fiscal policy; debt
    JEL: E32 E62 F41 H62 H63 O11
    Date: 2014–02
  5. By: Javier García-Cicco; Markus Kirchner; Santiago Justel
    Abstract: We set up and estimate a DSGE model of a small open economy to assess the role of domestic financial frictions in propagating foreign shocks. In particular, the model features two types of financial frictions: one in the relationship between depositors and banks (following Gertler and Karadi, 2011) and the other between banks and borrowers (along the lines of Bernanke et al, 1999). We use Chilean data to estimate the model, following a Bayesian approach. We find that the presence of financial frictions increases the importance of foreign shocks in explaining consumption, inflation, the policy rate, the real exchange rate and the trade balance. In contrast, under financial frictions the role of these foreign shocks in explaining output and investment is somehow reduced. The behavior of the real exchange rate and its interaction with the financial frictions is key to understand the results.
    Date: 2014–01
  6. By: Loayza, Norman V. (The World Bank); Rigolini , Jamele (The World Bank); Calvo-Gonzlez, Oscar (The World Bank)
    Abstract: This paper builds on a comprehensive dataset for Peru that merges municipal fiscal accounts with information about municipalities’ characteristics such as population, poverty, education and local politics to analyze the leading factors affecting the ability of municipalities to execute the allocated budget. According to the existing literature and the Peruvian context, we divide these factors into four categories: the budget size and allocation process; local capacity; local needs; and political economy constraints. While we do find that all four factors affect decentralization, the largest determinant of spending ability is the adequacy of the budget with respect to local capacity. The results confirm the need for decentralization to be implemented gradually over time in parallel with strong capacity building efforts.
    Keywords: Decentralization, Spending, Capacity, Governance
    JEL: H7 H83 O11 O23
    Date: 2014–01

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