nep-lam New Economics Papers
on Central and South America
Issue of 2023‒05‒01
three papers chosen by

  1. A Proposal to Issue SDR-Denominated Treasury Bonds: The Case for Colombia By Alfonso Iozzo; Fabio Masini; Albertina Nania
  2. The impacts of studying abroad: evidence from a government-sponsored scholarship program in Brazil By Conceição, Otavio; Oliveira, Rodrigo; Souza, André Portela
  3. Rooting for the Same Team: On the Interplay between Political and Social Identities in the Formation of Social Ties By Nicolás Ajzenman; Bruno Ferman; Pedro C. Sant’Anna

  1. By: Alfonso Iozzo (Robert Triffin Internationa; Centro Studi sul Federalismo); Fabio Masini (Roma Tre University); Albertina Nania (Roma Tre University)
    Abstract: The time might be ripe for a proposal regarding the issuing of SDR-denominated Treasury bonds in one or more Latin American countries. A modest initiative, in quantitative terms, by a country in a key area of the world could provide the trigger for future action in the same direction, helping to develop a liquid market for SDRs-denominated bonds, thereby contributing to relaunching multilateralism worldwide. Colombia, in particular, could fit this agenda. The change in the political majority in the government of the country, the growth dynamics experienced in recent decades, and its relative financial weakness may provide incentives for an initiative aimed at strengthening the country’s credibility on global financial markets.
    Keywords: Keywords: SDR, Treasury Bonds, Colombia, multilateralism, financial markets
    JEL: E50 F20 G15
    Date: 2021–11
  2. By: Conceição, Otavio; Oliveira, Rodrigo; Souza, André Portela
    Abstract: This paper investigates the impact of the Science without Borders (Ciência sem Fronteiras - CSF) program on participants’ post-graduation enrollment, employment, and entrepreneurship. The program was launched in 2011 to increase students’ human capital and interest in science and postgraduate education studies through a substan tial increase in scholarships for Brazilians to carry out part of their undergraduate studies abroad. We exploit variation in the approval rate across CSF selection calls for the same destination country and year and combine seventeen public and private administrative records to track CSF candidates’ outcomes up to eight years after the call. The main results suggest that the program did not achieve its goals of in creasing approved student enrollment in postgraduate education programs in Brazil. Even though the program could have improved student skills and acted as a market signaling, we do not find effects on the probability of working in the formal labor market, or as formal entrepreneurs. Using detailed data from one top university, we show that approved students graduate more often, but take longer to graduate, which may have negative impacts on their labor market outcomes. Finally, although we cannot rule out that students moved to a foreign country after the program, we show that the likelihood of this event may have decreased over time.
    Date: 2023–04–05
  3. By: Nicolás Ajzenman (McGill University); Bruno Ferman (São Paulo School of Economics - FGV); Pedro C. Sant’Anna (São Paulo School of Economics - FGV)
    Abstract: We study the interplay between political and other social identities in the formation of social ties in a setting of intense affective polarization. We created fictional accounts on Twitter that signaled their political preference for one of the two leading candidates in the Brazilian 2022 Presidential election, their preference for a Brazilian football club, or both. We interpret preference for a football club as an affective dimension of identity. The bots randomly followed Twitter accounts with congruent and incongruent identities across these two dimensions, and we computed the proportion of follow-backs and blocks they received. Both dimensions of identity are relevant in forming ties, but the effect of sharing a political identity is significantly greater. Moreover, affective identity becomes substantially less relevant when information about political identity is available, indicating that political identity can overshadow other dimensions of identity. Still, shared affective identity has a positive effect in fostering ties even among politically opposite individuals. This result suggests that shared identities such as preference for a football club have the potential to reduce politically induced societal divides, despite the evidence that affective polarization may diminish this effect.
    Keywords: Social Identity; Affective Polarization; Brazilian Elections; Social Media.
    JEL: D72 D91 C93 Z20
    Date: 2023–04

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