nep-lam New Economics Papers
on Central and South America
Issue of 2019‒03‒04
three papers chosen by

  1. Using RCTs to Estimate Long-Run Impacts in Development Economics By Bougen, Adrien; Huang, Yue; Kremer, Michael; Miguel, Edward
  2. Rigidities and adjustments of daily prices to costs: Evidence from supermarket data By Giulietti, Monica; Otero,Jesus; Waterson, Michael
  3. A Will in Search of a Way: Philanthropy in Education in Peru By Leon, Vicente; Bird, Matthew

  1. By: Bougen, Adrien; Huang, Yue; Kremer, Michael; Miguel, Edward
    Abstract: We assess evidence from randomized control trials (RCTs) on long-run economic productivity and living standards in poor countries. We first document that several studies estimate large positive long-run impacts, but that relatively few existing RCTs have been evaluated over the long-run. We next present evidence from a systematic survey of existing RCTs, with a focus on cash transfer and child health programs, and show that a meaningful subset can realistically be evaluated for long-run effects. We discuss ways to bridge the gap between the burgeoning number of development RCTs and the limited number that have been followed up to date, including through new panel (longitudinal) data, improved participant tracking methods, alternative research designs, and access to administrative, remote sensing, and cell phone data. We conclude that the rise of development economics RCTs since roughly 2000 provides a novel opportunity to generate high-quality evidence on the long-run drivers of living standards.
    Keywords: cash transfers; child health; development economics; long-run impacts; panel (longitudinal) data; randomized controlled trials
    Date: 2019–01
  2. By: Giulietti, Monica (Loughborough University); Otero,Jesus (Universidad del Rosario); Waterson, Michael (University of Warwick)
    Abstract: We assess the extent of inertia in grocery retail prices using data on prices and costs from a large supermarket chain in Colombia. Relative to previous work our analysis benefits from the daily frequency of the data and the availability of reliable replacement cost data. We uncover evidence supporting the existence of significant nominal rigidities in reference prices (three months) and even more so in reference costs (about five months). There is evidence that the price and cost rigidities differ depending on the type of product, being on average smaller in the case of perishable goods. Using an Error Correction Model framework, we examine the path of prices relative to costs, to determine the speed of adjustment of prices to shocks.
    Keywords: nominal rigidities ; prices ; costs ; grocery trade ; error correction
    JEL: C32 E31 L11 L81
    Date: 2019
  3. By: Leon, Vicente; Bird, Matthew
    Abstract: As Latin America’s fastest growing economy since 2001, Peru is now an upper middle-income country. However, its human development and education indices have not improved in parallel with per capita income. With overseas development assistance (ODA) shifting resources outside Peru due to the country’s upper middle-income status, local philanthropists sought to fill the social investment gap. Which philanthropic and social investment models are emerging in Peru, and what lessons do they offer for other countries caught in the middle-income trap? We base our responses on an original quantitative and qualitative survey of 157 philanthropic organisations in Peru’s 10 largest cities. Given the size of philanthropic spending relative to the country’s public education budget, the ability to strategically leverage investments becomes even more critical to generate impact at scale.
    Keywords: Philanthropy, Social investment, Education, Middle-income, Peru
    JEL: N3
    Date: 2018–11–15

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