nep-lam New Economics Papers
on Central and South America
Issue of 2015‒07‒25
ten papers chosen by

  1. The Winding Path for the Development of Low Carbon Economies in South America: The Pacific Alliance and Brazil’s New Challenges By Joana Castro Pereira
  2. Metropolitan Governance in Brazil By World Bank Group
  3. El Salvador By Oscar Calvo-Gonzalez; J. Humberto Lopez
  4. Panama By Friederike Koehler-Geib; Kinnon Scott; Ayat Soliman; J. Humberto Lopez
  5. The export-productivity link in Brazilian manufacturing firms By Cirera,Xavier; Lederman,Daniel; Máñez,J.A.; Rochina,M.E.; Sanchis,J.A.
  6. The Break of Brand Exclusivity in Brazilian Credit Card Acquiring: effects and markup-cost decomposition in a price dispersion setting By Gabriel Garber; Márcio Issao Nakane
  7. Expectativa de Vida no Mercado de Trabalho Brasileiro By Charles Henrique Correa
  8. The Antecedents and Aftermath of Financial Crises as told by Carlos F. Díaz Alejandro By Reinhart, Carmen M.
  9. Towards a “New” Inflation Targeting Framework: The Case of Uruguay By Matias Escudero; Martin Gonzalez-Rozada; Martin Sola
  10. Honduras Social Expenditures and Institutional Review By World Bank

  1. By: Joana Castro Pereira (Lusíada University)
    Abstract: South America is one of the most vulnerable regions to climate change, whose impacts can undermine the continent’s development. Nevertheless, a) it is very rich on natural resources; b) hydroelectricity plays an important role in its electric energy matrix; and c) the regional carbon emissions profile focuses on deforestation, agriculture and cattle raising. Therefore, the continent has an intrinsic potential to move towards a low carbon economy. Since there is a strong possibility of productive complementarity between countries, green energy integration in the region may be the best path to meet some of the challenges that lie ahead. Brazil is the continent’s largest economy, largest market and the holder of the largest generating facilities, and has emerged as the dominant figure in the energy integration project. Furthermore, the country is the ‘green pole’ of the region and has used South America energy integration processes as key-elements for consolidating its regional leadership. Thus, it seemed fair to assert that Brazil had the potential to lead the continent to a low carbon economy. However, and even though there have always been obstacles to the achievement of such an ambitious goal, some significant challenges have recently arisen: the Pacific Alliance, which has been increasing Mexico’s influence over South America; and the Brazilian political, economic and social situations’ deterioration from 2013 until today. So, this paper aims to analyze these two challenges and understand how they jeopardize a regional green energy integration process in South America.
    Keywords: South-America, Energy Integration, Brazil, Pacific Alliance
  2. By: World Bank Group
    Keywords: Governance - Local Government Health, Nutrition and Population - Population Policies Urban Development - City Development Strategies Urban Development - Regional Urban Development Urban Development - Urban Governance and Management Water Supply and Sanitation - Sanitation and Sewerage Water Supply and Sanitation - Town Water Supply and Sanitation
    Date: 2015–05
  3. By: Oscar Calvo-Gonzalez; J. Humberto Lopez
    Keywords: Governance - National Governance International Economics and Trade - Trade Policy Macroeconomics and Economic Growth - Economic Development Macroeconomics and Economic Growth - Economic Growth Macroeconomics and Economic Growth - Economic Policy, Institutions and Governance Poverty Reduction - Achieving Shared Growth Poverty Reduction - Employment and Shared Growth Poverty Reduction - Inequality Social Protections and Labor - Labor Markets
    Date: 2015–06
  4. By: Friederike Koehler-Geib; Kinnon Scott; Ayat Soliman; J. Humberto Lopez
    Keywords: Environment - Environmental Economics & Policies Environment - Water Resources Management Governance - National Governance Macroeconomics and Economic Growth - Economic Development Macroeconomics and Economic Growth - Economic Growth Macroeconomics and Economic Growth - Economic Policy, Institutions and Governance Poverty Reduction - Achieving Shared Growth Poverty Reduction - Inequality Poverty Reduction - Social Development & Poverty Public Sector Development Social Development - Social Inclusion & Institutions
    Date: 2015–06
  5. By: Cirera,Xavier; Lederman,Daniel; Máñez,J.A.; Rochina,M.E.; Sanchis,J.A.
    Abstract: This paper explores the link between exports and total factor productivity in Brazilian manufacturing firms over the period 2000?08. The Brazilian experience is instructive, as it is a case of an economy that expanded aggregate exports significantly, but with stagnant aggregate growth in total factor productivity. The paper first estimates firm-level total factor productivity under alternative assumptions (exogenous and endogenous law of motion for productivity) following a GMM procedure. In turn, the analysis uses stochastic dominance techniques to assess whether the ex ante most productive firms are those that start exporting (self-selection hypothesis). Finally, the paper tests whether exporting boosts firms? total factor productivity growth (learning-by-exporting hypothesis) using matching techniques to control for the possibility that selection into exports may not be a random process. The results confirm the self-selection hypothesis and show that starting to export yields additional growth in total factor productivity that emerges since the firm?s first year of exporting but lasts only one year. Further, this extra total factor productivity growth is much higher under the assumption of an endogenous law of motion for productivity, which reinforces the importance of accounting for firm export status to study the evolution of productivity.
    Keywords: E-Business,Economic Theory&Research,Labor Policies,Industrial Management,Knowledge for Development
    Date: 2015–07–13
  6. By: Gabriel Garber; Márcio Issao Nakane
    Abstract: Visanet monopolized Visa merchant acquiring activities in Brazil while Redecard did the same for MasterCard, until the industry was under authorities’ scrutiny and exclusivity was broken in mid-2010. In this paper, we perform two main tasks. First, we use the knowledge of part of the marginal cost specific to this industry (the interchange fee) to identify markup and marginal cost using individual merchant data. Then, we use this framework to evaluate the impact of the change of the environment on these price components. We find sizable reduction in markup as a result of increased competition
    Date: 2015–06
  7. By: Charles Henrique Correa
    Abstract: Although fertility rates at very low levels negatively affect the number of people in the labor force, the average lifetime of each person in the labor market may increase with the fall of mortality rates, ceteris paribus. Therefore, during demographic transition, the size of labor force would decrease, but the average lifetime of each person in the labor market would increase. In this research, working life expectancies are estimated with 2000 and 2010 Census data by the Sullivan method to analyze the level and structure of working life expectancies in Brazil. Life expectations do not have influence of age composition, which allows comparison of the measures in time and space without that bias. The results show that, on average, working life expectancy at 15 years old increased from 32.5 years in 2000 to 34.5 years in 2010. Therefore, although the size of labor force has been negatively affected by fertility decline, people had higher expectations to remain in the labor market during the remaining life. Between 2000 and 2010, the observed increase of the working life expectancy was 50% due to the decline in mortality rates and 50% due to changes in activity rates. Between sexes, while male expectation was most affected by mortality, female expectation was most affected by activity rates
    Date: 2015–06
  8. By: Reinhart, Carmen M.
    Abstract: Some of the best-known papers of Carlos F. Díaz Alejandro were about Latin America’s crises in the 1980s and 1930s. I will show data, figures and evidence here about the crises in the advanced economies 30 years later that fit the same narrative. His unadulterated words aptly describe modern problems across geographical borders and, in this case, income levels. This attests to his timeless insight and understanding. Because some of the observations he made have general applicability to the study of recurring patterns across crises, I have taken the liberty to label these as lessons. These are primarily lessons about what to avoid.
    JEL: B26 E5 E6 F3 G01
    Date: 2015–07
  9. By: Matias Escudero; Martin Gonzalez-Rozada; Martin Sola
    Abstract: Using a dynamic stochastic general equilibrium model with financial frictions we study the effects of a rule that incorporates not only the interest rate but also the legal reserve requirements as instruments of the monetary policy. We evaluate the effectiveness of both instruments to accomplish the inflationary and/or financial stability objectives of the Central Bank of Uruguay. The main findings are that: (i) reserve requirements can be used to achieve the inflationary objectives of the Central Bank. However, reducing inflation using this instrument, it also produces a real appreciation of the Uruguayan peso; (ii) when the Central Bank uses the monetary policy rate as an instrument, the effect of the reserve requirements is to contribute to reduce the negative impact over consumption, investment and output of an eventual increase in this rate. Nevertheless, the quantitative results in terms of inflation reduction are rather poor; and (iii) the monetary policy rate becomes more effective to reduce inflation when the reserve requirement instrument is solely directed to achieve financial stability and the monetary policy rate used to achieve the inflationary target. Overall, the main policy conclusion of the paper is that having a non-conventional policy instrument, when well-targeted, can help effectively inflation control. Moving reserve requirements can also be instrumental in offsetting the impact of monetary policy on the real exchange rate.
    Keywords: dynamic stochastic general equilibrium models, financial frictions, monetary policy, reserve requirements, inflation targeting, non-conventional policy instruments
    JEL: E52 E58
    Date: 2014–01
  10. By: World Bank
    Keywords: Health Monitoring and Evaluation Access and Equity in Basic Education Education - Primary Education Education - Education For All Health, Nutrition and Population - Population Policies Social Protections and Labor - Safety Nets and Transfers
    Date: 2014–12

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