Peace, Justice and Strong Institutions

Efficiency of research in universities of Chile

Submitted by César Salazar on 7 September 2020

To evaluate the management of Chilean universities in terms of their role as knowledge generators, the DEA methodology was applied to a subset of universities. Next, a fractional probit model was estimated with the efficiency scores obtained to explore factors that influence performance. The results show high levels of efficiency in research, with private institutions reporting higher scores than state institutions, and some important factors being detected in obtaining that performance.

Policy Design, Urban

Environmental policy instruments and corruption

Submitted by Elin Lokrantz on 27 July 2020

In this paper we discuss the choice of taxation or regulation of environmental externalities. The subject might appear to be a well-trodden path, but we believe we have a new angle on this well-established question. We think we are being quite realistic when we assume that corrupt practices lurk behind every corner, threatening to derail the good intents of any regulator.

Carbon Pricing, Climate Change

Embedding effect and the consequences of advanced disclosure: evidence from the valuation of cultural goods

Submitted by César Salazar on 9 July 2020

This study revisits the embedding effect, a long-standing problem in the nonmarket valuation literature. The embedding effect was a popular research topic during the 1990s, especially following the Exxon Valdez oil spill in Alaska. It has resurfaced after a special issue of The Journal of Economic Perspectives in 2012 in which Jerry Hausmann asserts that among the three long-standing problems with contingent valuation, the embedding effect is the most challenging.


Natural Resource Revenues and Public Investment in Resource-rich Economies in Sub-Saharan Africa

Submitted by Samuel Wakuma on 18 May 2020

The general policy prescription for resource‐rich countries is that, for sustainable consumption, a greater percentage of the windfall from resource rents should be channeled into accumulating foreign assets such as a sovereign public fund as done in Norway and other developed but resource‐rich countries. This might not be a correct policy prescription for resource‐rich sub‐Saharan African (SSA) countries, where public capital is very low to support the needed economic growth. In such countries, rents from resources serve as an opportunity to scale‐up the needed public capital.

Policy Design

Quality of institution and the FEG (forest, energy intensity, and globalization) -environment relationships in sub-Saharan Africa

Submitted by Samuel Wakuma on 18 May 2020

The current share of sub-Saharan Africa in global carbon dioxide emissions is negligible compared to major contributors like Asia, Americas, and Europe. This trend is, however, likely to change given that both economic growth and rate of urbanization in the region are projected to be robust in the future. The current study contributes to the literature by examining both the direct and the indirect impacts of quality of institution on the environment.

Energy, Forestry

Social capital and subjective well-being: a study of the role of participation in social organizations in life satisfaction and happiness in Chilean cities

Submitted by César Salazar on 8 May 2020

The concept of welfare has evolved to incorporate subjective elements. One key factor for development is social capital. Participation in organizations promotes a more active social life, with potential positive results on welfare. This work investigates this last association through the estimation of a bivariate ordered probit model by using the World Value Survey for Chile.


Are local governments more efficient as the same political coalition governs? A study among Chilean municipalities

Submitted by César Salazar on 8 May 2020

Lately, questionings have emerged on how public resources are managed. This work calculates the technical efficiency of municipalities in Chile, with special emphasis on the political factors that drive efficiency in the management of local resources. In particular, focus is placed on the relationship between political ideology of the local government and central government. To do this, we use a panel data of Chilean municipalities for the years 2010-2016. The methodology follows two stages. First, we estimate efficiency scores by the Data Envelopment Analysis (DEA) approach.

Policy Design

Uncertain penalties and compliance: experimental evidence

Submitted by César Salazar on 8 May 2020

We present the results of a series of economic laboratory experiments designed to study the compliance behavior of polluting firms when penalties are stochastic. The experiments consist of a regulatory environment in which university students faced emission standards and an enforcement mechanism composed of audit probabilities and penalties (conditional on detection of a violation).

Experiments, Policy Design

Do immigrants increase crime? Spatial analysis in a middle-income country

Submitted by César Salazar on 8 May 2020

The last decade has seen a significant global increase in immigration. This large growth has caused an increasing opposition to immigration in local populations in many parts of the world, partly because of a commonly held belief that immigration increases crime. Using data from Chile, spanning 10 years, from 2005 to 2015, we analyze the relationship between immigration and crime through a dynamic Spatial Durbin Model (SDM), which accounts for the possible bias for omitted variables.


Geographical spillovers on the relation between risk-taking and market power in the US banking sector

Submitted by César Salazar on 4 May 2020
EfD Authors:

This paper investigates the relation between risk taking and market power in the US banking sector by introducing the effect of geographical spillovers caused by the transmission of risk taking among banks. For this purpose, we use spatial econometrics. Our results support a negative relation between risk taking and market power. The transmission of risk taking causes significant geographical spillovers, which increases the magnitude of the relation under analysis here.