nep-lam New Economics Papers
on Central and South America
Issue of 2020‒08‒10
three papers chosen by
Maximo Rossi
Universidad de la República

  1. A Framework for Studying the Monetary and Fiscal History of Latin America, 1960–2017 By Timothy J. Kehoe; Juan Pablo Nicolini; Thomas J. Sargent
  2. Environmental Impacts and Policy Responses to Covid-19: A View from Latin America By López-Feldman, Alejandro; Chávez, Carlos; Alejandra Vélez, María; Bejarano, Hernán; B. Chimeli, Ariaster; Féres, José; Robalino, Juan; Salcedo, Rodrigo; Viteri, César
  3. Life expectancy at retirement and income levels in Chile By Edwards, Gonzalo; Soto, Raimundo; Zurita, Felipe

  1. By: Timothy J. Kehoe; Juan Pablo Nicolini; Thomas J. Sargent
    Abstract: We develop a conceptual framework for analyzing the interactions between aggregate fiscal policy and monetary policy. The framework draws on existing models that analyze sovereign debt crises and balance-of-payments crises. We intend this framework as a guide for analyzing the monetary and fiscal history of a set of eleven major Latin American countries—Argentina, Brazil, Bolivia, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, and Venezuela—from the 1960s until now.
    Keywords: Debt crisis; Monetary policy; Off-budget transfers; Banking crisis; Fiscal policy
    JEL: E52 E63 H63 N16
    Date: 2020–07–21
  2. By: López-Feldman, Alejandro; Chávez, Carlos; Alejandra Vélez, María; Bejarano, Hernán; B. Chimeli, Ariaster; Féres, José; Robalino, Juan; Salcedo, Rodrigo; Viteri, César
    Abstract: COVID-19 is currently having major short run effects with possible serious long run implications for the environment and the management of natural resources in Latin America. In this paper, we discuss the possible effects of the pandemic on air pollution, deforestation and other relevant environmental dimensions across the region. With contributions from environmental economists from eight countries, we give an overview of the initial and expected environmental effects of this health crisis. We discuss potential effects on environmental regulations, possible policy interventions, and an agenda for future research for those interested in the design and evaluation of environmental policies relevant for the Latin American context.
    Keywords: Air pollution; COVID-19; coronavirus; deforestation; environmental impacts; environmental policy; Latin America; pandemic; SARS-Cov2-19
    JEL: R10
    Date: 2020–07–15
  3. By: Edwards, Gonzalo; Soto, Raimundo; Zurita, Felipe
    Abstract: We document that life expectancies at the age of retirement differ significantly by income levels and gender in Chile. Using a sample of over 500 thousand workers that retired under the annuity system, we find that, conditional on reaching retirement age, there is a three-year difference in life expectancy between the lower and higher income groups. Differences are similar for men and women. We also find that as income per capita in Chile expanded over the past three decades, poverty levels have decreased quite markedly among pensioners. The evidence on income distribution is less clear cut. While income inequality is lower for the new generations, it increases after retirement within each generation as the poor die younger than the rich workers. Gender differences are also noteworthy. First, income among women is less unequal than that of men at retirement age and afterwards. Second, income inequality among retired men progressively worsens over time, while among women it remains stagnant over time. Our results have important im- plications for welfare projections, the allocation of health subsidies among pensioners, and the structure and management of the reserves required to life-insurance companies.
    Keywords: Equidad e inclusión social, Género, Pobreza, Salud, Trabajo y protección social,
    Date: 2020

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