nep-lam New Economics Papers
on Central and South America
Issue of 2025–10–27
four papers chosen by
Maximo Rossi, Universidad de la RepÃúºblica


  1. How to end a chronic inflation? Evidence from 47 Latin American stabilization programs By Joaquín Waldman
  2. Strategic Interactions and Gender Cues: Evidence from Social Preference Games By Hernán Bejarano; Matías Busso; Juan Francisco Santos
  3. Public Gains, Private Strains: Public Investment and Private Schooling in Peru By Fagernäs, Sonja; de la Fuente Stevens, Diego; Pelkonen, Panu; del Pozo Segura, Juan Manuel
  4. The Urban Learning Premium - Evidence from Peru By Fagernäs, Sonja; Pelkonen, Panu; del Pozo Segura, Juan Manuel

  1. By: Joaquín Waldman (CONICET–Centro de Estudios de Estado y Sociedad (CEDES); CONICET–Universidad de Buenos Aires. Facultad de Ciencias Económicas. Instituto Interdisciplinario de Economía Política (IIEP); Universidad de Alcalá. Instituto Universitario de Investigación en Estudios Latinoamericanos (IELAT).)
    Abstract: Using Palazzo et al. (2023)’s episodic database of stabilization attempts, the paper estimates ordered probit models to identify initial conditions that increase the probability of lasting disinflations in Latin America.
    Keywords: Inflation; Stabilization programs; Latin America
    JEL: E31 E63
    Date: 2024–09
    URL: https://d.repec.org/n?u=RePEc:ake:iiepdt:2024-94
  2. By: Hernán Bejarano (CIDE/Chapman University); Matías Busso (IDB); Juan Francisco Santos (IDB)
    Abstract: This paper studies trust, reciprocity, and bargaining using a large-scale online experiment in six Latin American countries. Participants were randomly assigned to play trust and ultimatum games under conditions that either disclosed or withheld the gender of their counterpart. On average, gender disclosure did not affect behavior. However, disaggregated results show systematic differences. Men displayed higher levels of trust and reciprocity, particularly when interacting with women, and offered larger shares to women in bargaining. Women, by contrast, reciprocated more when paired with men. These findings show how gendered interactions can influence economic behavior, even when counterpart information is conveyed minimally.
    Keywords: Trust; Reciprocity; Bargaining; Gender; Latin America
    JEL: C92 D91 J16 O54
    Date: 2025–10
    URL: https://d.repec.org/n?u=RePEc:aoz:wpaper:375
  3. By: Fagernäs, Sonja (University of Sussex); de la Fuente Stevens, Diego (University of Sussex); Pelkonen, Panu (University of Sussex); del Pozo Segura, Juan Manuel (Pontificia Universidad Católica del Perú)
    Abstract: In the 2010s, Peru experienced an increase in public educational investment, a substantial improvement in public school learning outcomes, and an erosion in the private sector learning premium. We use longitudinal, geo-coded register data on primary schools and pupils in urban areas to study how the improvement in public schooling affected private schools. With a difference in differences (DiD) framework, we demonstrate that the increase in public school quality reduced enrolment and test scores in private schools, primarily in areas with lower education levels. A staggered DiD analysis shows that new public school openings also reduced enrolment in nearby private schools.
    Keywords: education policy, school quality, school competition, Latin America
    JEL: H52 I20 L33 N36
    Date: 2025–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp18189
  4. By: Fagernäs, Sonja (University of Sussex); Pelkonen, Panu (University of Sussex); del Pozo Segura, Juan Manuel (Pontificia Universidad Católica del Perú)
    Abstract: We examine the urban learning and schooling premium in Peru using two approaches: 1) estimating the effect of local population density on pupils’ value-added in learning between grades two to eight, 2) quasi-experimental Census estimations on the effects of the duration of urban exposure in childhood on school attainment. Unconditional estimates show that a ten-fold increase in population density is associated with around 0.13 standard deviations higher value-added in learning. Conditional estimates suggest that this association is driven largely by sorting, captured mainly by household socio-economic status, and local area factors, reflecting agglomeration benefits. School resources, in turn, are unimportant. Finally, a higher population density also correlates with unobserved factors that can harm learning. The quasi-experimental estimations confirm a positive relationship between urban exposure and educational outcomes: a longer period of urban education leads to higher educational attainment and a higher likelihood of enrolment in the correct grade for age.
    Keywords: agglomeration, neighborhoods, learning, urbanization, Latin America
    JEL: I21 O15 R58 H75
    Date: 2025–10
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp18177

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