nep-lam New Economics Papers
on Central and South America
Issue of 2018‒10‒22
five papers chosen by
Maximo Rossi
Universidad de la República

  1. Fiscal Redistribution, Sustainability, and Demography in Latin America By Ramiro Albrieu; Jose Maria Fanelli
  2. Quality Regulation and Competition: Evidence from Pharmaceutical Markets By Atal, Juan Pablo; Cuesta, José Ignacio; Sæthre, Morten
  3. Informing policies on sustainable water uses in a developing country setting: Assessing the value of water in Uruguay By Carriquiry, Miguel A.
  4. The Role of Climate Risk on Land Allocation in Brazilian Amazon By Ferreira, Marcelo D P; Feres, Jose
  5. Early Stimulation and Nutrition: The Impacts of a Scalable Intervention By Orazio Attanasio; Helen Baker-Henningham; Raquel Bernal; Costas Meghir; Diana Pineda; Marta Rubio-Codina

  1. By: Ramiro Albrieu (Universidad de San Andres, Buenos Aires); Jose Maria Fanelli (Universidad de San Andres, Buenos Aires)
    Abstract: The paper investigates empirically the links between the fiscal space, fiscal redistributions, and distributional outcomes for the case of Latin America. It focus on two factors; first, the role of intertemporal restrictions and debt sustainability and, second, the demographic transition’s influence on the fiscal redistribution structure. The paper identifies some stylized facts that matter in designing distribution-friendly fiscal consolidation policies. Two findings deserve highlighting. First, the way in which a given fiscal adjustment is implemented matters to income distribution. As a general rule, the downward adjustment of expenditures is regressive, although the importance of the impact varies substantially according to the expenditure item and from one economy to another. Second, the Demographic Window of Opportunity (DWO) is the key stage of the demographic transition regarding the fiscal space in Latin America. Younger countries are entering the DWO and the older ones have to prepare to abandon it and enter the aging stage. The exercises suggest that the DWO will create the fiscal space required to implement progressive policies in younger countries while the opposite will occur in the countries that will age. The simulations indicate that the demographic transition-driven effects on the items of fiscal redistributions are potentially very large and have substantial consequences for income distribution and debt sustainability.
    Keywords: Fiscal Policy, Demographics
    JEL: E62 J11
    Date: 2018–09
  2. By: Atal, Juan Pablo (University of Pennsylvania); Cuesta, José Ignacio (University of Chicago); Sæthre, Morten (Dept. of Economics, Norwegian School of Economics and Business Administration)
    Abstract: We study the effects of quality regulation on market outcomes by exploiting the staggered phase-in of bioequivalence requirements for generic drugs in Chile. We estimate that the number of drugs in the market decreased by 25%, average paid prices increased by 10%, and total sales decreased by 20%. These adverse effects were concentrated among small markets. Our results suggest that the intended effects of quality regulation on price competition through increased (perceived) quality of generics—and therefore reduced vertical differentiation—were overturned by adverse competitive effects arising from the costs of complying with the regulation.
    Keywords: Quality regulation; competition; bioequivalence; generic pharmaceuticals
    JEL: I11 L11 L15 L65
    Date: 2018–09–26
  3. By: Carriquiry, Miguel A.
    Keywords: Food and Agricultural Policy Analysis, Resource and Environmental Policy Analysis, Environmental and Nonmarket Valuation
    Date: 2018–06–20
  4. By: Ferreira, Marcelo D P; Feres, Jose
    Keywords: Resource and Environmental Policy Analysis, Risk and Uncertainty, Production Economics
    Date: 2018–06–20
  5. By: Orazio Attanasio (University College London); Helen Baker-Henningham (Tropical Medicine Research Institute, University of the West Indies); Raquel Bernal (Universidad de los Andes); Costas Meghir (Yale University); Diana Pineda (Fundacio´n E´xito); Marta Rubio-Codina (EDePo@IFS)
    Abstract: This paper evaluates the effects of the implementation of a structured early stimulation curriculum combined with a nutritional intervention through public large-scale parenting support services for vulnerable families in rural Colombia, known as FAMI, using a clustered randomized controlled trial. We randomly assigned 87 towns in rural areas to treatment and control and 1,460 children younger than 1 year of age were assessed at baseline. The interventions were also complemented with training, supervision and coaching of FAMI program facilitators. We assessed program effects on children’s nutritional status, and on cognitive and socio-emotional development; as well as on parental practices. The interventions had a positive and significant effect on a cognitive development factor based on the Bayley-III of 0.15 standard deviations. We also report a reduction of 5.8 percentage points in the fraction of children whose height-for-age is below -1 standard deviation. We do not find any effects on socio-emotional development. We report positive and statistically significant effects on the quality of the home environment (0.34 SD).
    Keywords: early childhood development, parenting, early stimulation, program scale-up
    JEL: J13 I10 I20 H43
    Date: 2018–10

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