nep-lam New Economics Papers
on Central and South America
Issue of 2016‒04‒04
four papers chosen by

  1. Aspiration failure: a poverty trap for indigenous children in Peru? By Laure Pasquier-Doumer; Fiorella Risso Brandon
  2. Intergenerational mobility and the rise and fall of inequality: Lessons from Latin America By Neidhöfer, Guido
  3. Spatial strategies in Brazilian Franchising; Behavior categories and Performance Outcome By Eugenio Jose Silva Bitti; Muriel Fadairo; Cintya Lanchimba; Vivian-Lara Silva
  4. What if Brazil Hadn't Floated the Real in 1999? By Carlos Viana de Carvalho; André D. Vilela

  1. By: Laure Pasquier-Doumer (LEDa - DIAL - Laboratoire d'Economie de Dauphine - Economie de la mondialisation et du développement - Université Paris IX - Paris Dauphine); Fiorella Risso Brandon (IRD - Institut de Recherche pour le Développement, LEDa - DIAL - Laboratoire d'Economie de Dauphine - Economie de la mondialisation et du développement - Université Paris IX - Paris Dauphine)
    Abstract: This paper aims to contribute to understand the mechanisms underlying the complex exclusion process of indigenous people in Peru, by analysing the role played by aspirations in the investment in education of indigenous children. To address these issues, the paper relies on a very rich data set, theYoung Lives data, and use an original instrument that allow to cast light on the causal relation betweenaspiration and educational outcomes. We find that aspiration failure is a channel of inequalitypersistence between indigenous and non-indigenous people, but that aspiration failure do not takes theform of a lack of aspiration. Indigenous children do not have internalized racial schemas about occupation or about their opportunities. However, the gap between their aspiration and their current socio-economic status is too large, in so far as it has a disincentive effect on forward-looking behaviour.
    Abstract: Ce document vise à mieux comprendre les mécanismes qui sous-tendent le processus d'exclusion des indigènes au Pérou. Nous analysons en particulier le rôle joué par les aspirations des enfants indigènessur leur investissement scolaire. En utilisant les données des enquêtes Young Lives et en mobilisant uninstrument original, cet article permet d’identifier la relation causale entre les aspirations et lesrésultats scolaires. Nous montrons que les aspirations participent à la persistance des inégalités entreles populations indigènes et non indigènes. Cependant, cette transmission des inégalités ne passe paspar une auto-limitation des aspirations de la part des enfants indigènes, mais plutôt par un écart tropimportant entre les aspirations des enfants indigènes et leur statut socio-économique. La trop longuedistance à parcourir pour combler cet écart a un effet désincitatif sur les efforts fournis par les enfantsindigènes à l’école. En revanche, il apparaît que les enfants indigènes n’ont pas intériorisé les valeursdiscriminatoires à l’encontre des indigènes dans leur façon de former leurs aspirations
    Keywords: educational outcomes,Peru,Indigenous,aspiration,indigènes,résultats scolaires,Pérou
    Date: 2015
  2. By: Neidhöfer, Guido
    Abstract: Countries with high income inequality also show a strong association between parents´ and children´s economic well-being; i.e. low intergenerational mobility. This study is the first to test this relationship in a between and within country setup, using harmonized micro data from 18 Latin American countries spanning multiple cohorts. It is shown that experiencing higher inequality in childhood has a negative effect on intergenerational mobility as adults. Furthermore, the influence of economic growth and public education is evaluated: both have a positive, significant, and substantial effect on intergenerational mobility.
    Keywords: inequality,intergenerational mobility,equality of opportunity,human capital,growth,development,public education,Great Gatsby Curve,Latin America
    JEL: D63 I24 J62 O15
    Date: 2016
  3. By: Eugenio Jose Silva Bitti (School of Economics, Business Administration and Accounting, University of São Paulo, Brazil); Muriel Fadairo (Université de Lyon, Lyon F- 69007, France; CNRS, GATE L-SE, Ecully, F- 69130, France; Université J. Monnet, Saint-Etienne, F- 42000, France); Cintya Lanchimba (Escuela Politécnica Nacional, Ecuador, Ladron de Guevera E11-253, Quito 170517, Ecuador); Vivian-Lara Silva (Center for Organization Studies (CORS), University of São Paulo (USP), Brazil)
    Abstract: This empirical article deals with the location strategy and performance outcomes of franchised chains in Brazil. Brazilian franchising has experienced vertiginous process of expansion in recent years, being present in different regions of this country of continental size, including the most remote and less developed. Based on the background literature in economics and management regarding location choices and spatial competition in retailing, we use a new and unique dataset to distinguish several behavior categories in spatial strategies of franchising chains in Brazil, via a two-step cluster analysis. The performance outcomes are then studied with econometric estimations on panel data. Our results provide evidence that the choice for agglomeration, and the location in areas with a high population and a high human development index, lead to higher chain performances.
    Keywords: Franchising, Location Strategy, Spatial Competition, Emerging Market, Panel Data
    JEL: M21 C23
    Date: 2016
  4. By: Carlos Viana de Carvalho (Department of Economics PUC-Rio); André D. Vilela (Banco Central do Brasil)
    Abstract: We estimate a dynamic, stochastic, general equilibrium model of the Brazilian economy taking into account the transition from a currency peg to inflation targeting that took place in 1999. The estimated model exhibits quite different dynamics under the two monetary regimes. We use it to produce counterfactual histories of the transition from one regime to another, given the estimated history of structural shocks. Our results suggest that maintaining the currency peg would have been too costly, as interest rates would have had to remain at extremely high levels for several quarters, and GDP would have collapsed. Accelerating the pace of nominal exchange rate devaluations after the Asian Crisis would have lead to higher inflation and interest rates, and slightly lower GDP. Finally, the first half of 1998 arguably provided a window of opportunity for a smooth transition between monetary regimes.
    Date: 2015–11

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