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GDN FUNDED PAPERS
Awards and Medals Competition 2012 - Measuring Norms of Income Transfer: Trust Experiments and Survey Data from Vietnam.
Project :
Author : Tomomi Tanaka, Nguyen Duc Quang and Colin Farrell Camerer
Date : 2012
Description : This paper compares the patterns of income transfers within village communities in the north and south of Vietnam by analyzing survey and experimental data. The results of household data analysis show private transfers flow from high-income households to low-income households in the south where the social safety net is limited. In contrast, private transfers do not correlate with pre-transfer income in the north where public transfers are more widespread. In a+F26ddition, public transfers crowd out private transfers in the north. The result of subjective survey data analysis also indicates people in the south favor redistribution to the poor. We conducted a trust game in both regions and found consistent results. People in the south are more altruistic toward the poor: they send more to the poor without expecting higher repayment. Private norms of redistribution from rich to poor appear to be active in the south, but are crowded out in the north by public redistribution.
Awards and Medals Competitio 2012 - Direct and Indirect Effects of Cash Transfer on Entrepreneurship.
Project : AMC 2012
Author : Rafael Perez Ribas
Date : October 2012
Description : This paper examines the importance of financial constraints in explaining entrepreneurship among loweducated individuals by exploring the liquidity shock promoted by a large-scale conditional cash transfer (CCT) program. More than just showing the overall effect of CCT on entrepreneurial activity, the analysis presents a way of decomposing the shock into direct and indirect parts. Even under the existence of selection bias, this decomposition is obtained based on verifiable assumptions. The results suggest that entrepreneurship in Brazil has grown 10% due to the CCT program. However, this rise is almost entirely driven by externalities. Further tests reject the hypothesis that these transfers boost investment opportunities and indicate that they actually foster informal financing mechanisms. Thus the transfer might not help participating households as much as it does other neighbor households to finance their enterprise.
Awards and Medals Competition 2012 - The Gender Education Gap in China – Menarche and the Power of Water
Project :
Author : Yasheng Maimati and W S Siebert
Date : October 2012
Description : We hypothesise that a girl’s education suffers because she has greater water needs for washing after menarche, needs which generally are not met in developing country circumstances. For testing we use panel data for rural villages from the China Health and Nutrition Survey. We present both instrumental variable estimates (based on whether a girl’s household receives tapwater from a government waterworks) and panel estimates. Both approaches imply that for girls after menarche, household provision of tapwater causes a considerable – 10 to 20 percentage point - rise in school enrolment.
Japanese Award for Outstanding Research on Development 2011 - The local contours of scavenging for e-waste and higher-valued constituent parts in Accra, Ghana
Project :
Author : Martin Oteng Ababio and Mary Anti Chama
Date : October 2011
Description : The informal sector in developing countries plays a particularly important role in the overall economic development, yet due to epistemological neglect, its conceptualization focuses on the prism of poverty and social exclusion, hence overshadowing its embedded innovativeness, adaptability and contributions to job creation, poverty alleviation and environmental management. This paper contributes in bridging this knowledge dearth by focusing on how informal e-waste recyclers negotiate the challenges of contemporary political economy contexts. Using an urban mining lens, this paper shows how crucial this sector is for the success of any municipal waste management system and Accra’s local economy in general. It is contended that the continuous denial of the sector’s virtues in the economy is a poor situational analysis and the research emphasizes instead the need to consider as well as harness the sector’s potential in order to create not only employment for the poor but also to bring e-waste recycling into mainstream waste management scholarship.
Japanese Award for Outstanding Research on Development 2011 - Growth of the Urban Shadow, Spatial Distribution of Economic Activities, and Commuting by Workers in Rural and Urban India
Project :
Author : Chandrasekhar S.and Ajay Sharma
Date : October 2011
Description : Unlike migration, scant attention has been paid to the phenomenon of commuting by workers in developing countries. This paper fills this gap by using a nationally representative data set from India to analyze factors that affect the decision of workers to commute across rural and urban areas daily. Our results suggest that regions with large peripheral urban areas or concentration of secondary sector jobs are more likely to have commuting workers. Regional rural and urban unemployment rates and rural–urban wage differentials are important push and pull factors in the decision to commute.
Awards and Medals Competition 2011 - Family well being, women attitudes and the intergenerational transmission of violence in urban areas in Peru
Project :
Author : Carlos Martin Benavides, Juan Jesus Martin Leon Jara Almonte and Maria Laura Veramendi
Date : October 2011
Description : Peru is not an exception from urban population growth tendencies in the world. In the last decades, this country undergone an important urbanization process, initiated seventy years ago, with a massive migration flow from the provinces to Lima (Matos Mar 1988: 32). This process had a preponderant character: it meant the beginning of the concentration of large migrant contingencies in Lima, creating a new type of urban settlement, the so-called slum (Op cit: 34). Large invasions of urban settlement in the capital, as well as in other main cities in the country, gave place to an immeasurable growth of slums and neighborhood associations. With this new development a new pressing demand for housing, titling, and basic services arose. Thus, if in 1940, 35.4% of the total Peruvian population resided in urban areas, towards the eighties this percentage reached 65% (Matos Mar 1988: 40), and around twenty years later (2007), 75.9% of the national population (INEI 2008: 20). Apart from the natural population growth, the main source of urban growth stems from internal migration flows. These influxes arise in many cases from the expectation of finding better economic possibilities and improved life conditions in cities that, supposedly, provide answers to this expectation. However, we can see from various studies that the urban growth such as this has been accompanied by a series of negative externalities manifested in a series of social and environmental issues arising in these cities. In the case of Peru, the urbanization of the main cities was accompanied by a chain of issues that have turned them into fertile spaces for developing various social problems. Lima for example, Peru’s capital, is the principal space for urban growth in the country, whose process occurred within a particular economic and social context, and at a great speed, and brought about the seeds of various problems implied in the process. One example of the quite unfavorable economic contexts has to do with Lima’s industrial apparatus, similarly as for other cities in Peru, which did not have the capacity to incorporate the new urban contingents arriving from provinces (Matos Mar 1988: 47). Circumstances such as this generated a significant crisis where a scenario of growing unemployment and underemployment brought Lima to be a city overloaded by activities that were precarious, informal or outside of the official circuit (Matos Mar 1988: 60). Using a unique Peruvian data set, this paper analyzes two other negative externalities in urban spaces: physical violence against women and physical violence against children. The hypothesis of the paper is that low levels of well-being in urban environments increases the probability of intergenerational transmission of mothers’ violence against their children.
Awards and Medals Competition 2011 - Schooling externalities in urban Nigeria: The social interactive sources
Project :
Author : Musiliu Adeolu Adewole
Date : October 2011
Description : It is 16.95 percent for LGA average year of secondary schooling and 20.58 percent for LGA year of tertiary education. The results are robust to test of omitted variables bias. IV identification strategy is adopted to tackle the problems of endogeneity and measurement error. IV estimates are in almost all cases significantly higher than OLS estimates, though the estimates for tertiary schooling are highly imprecise because of large standard errors. Excluding an apparently irrelevant variable and accounting for potential bias due to endogeneity of individual schooling attainment did not alter our results. The use of maximum likelihood method to generate unbiased and consistent estimates due to weak instrument in tertiary schooling IV regressions did change schooling externalities due to tertiary education. While selective migration is important in our models, our IV estimates are still large. Our instruments pass conventional validity tests such as falsification and over-identification tests. To probe the sources of human capital externalities in our model due to human social interactions within a defined space, we added LGA population density, investment in primary and secondary schools that created the pool of human capital, distance to the state capital the captures the strength of interaction with a large pool of human capital and the extent of exposure to individual with higher education within cluster areas and LGAs. All variables appear significantly in our model. The inclusion reduced OLS and IV estimates of schooling externalities, indicating they are causal channels for human capital externalities.
Awards and Medals Competition 2011 - Inter-Generational Effects of Titling Programs: Physical vs. Human Capital
Project :
Author : Nestor Gandelman
Date : October 2011
Description : Human capital investment may be affected by programs aimed at giving legal ownership titles to the occupants of land; these are called "land titling programs". Titling is associated with an income (or wealth) effect as it induces higher expenditure on normal goods like home consumption, education and health services. But there is also a substitution effect: the elimination or reduction of expropriation risk makes investment in the home more attractive and therefore increases the “opportunity cost” of other forms of spending. The net effect on human capital is ambiguous. We present a simple model to illustrate this point and test it using a natural experiment in Uruguay were human capital investment is proxied by education and health investment. Our results confirm that titling favors home investment to the detriment of some dimensions of human capital investment for children of 16 and under.
Awards and Medals Competition 2011 - Elite Capture in Urban Society: Evidence from Indonesia
Project :
Author : Rivayani Darmawan
Date : October 2011
Description : It is argued that the potential gains of community-driven development (CDD) approach in poverty program are large as it may result in a sustained poverty reduction. However, recent literatures show that community’s involvement promoted by this approach might increase the risk of elite capture towards the program’s benefit. Particularly in more unequal communities, the risk can be higher since the gap between the poor and the nonpoor is larger with limited mobility between groups, the poor would find it difficult to increase their bargaining power to voice their own choice. This paper contributes to the limited empirical literatures regarding the existence of elite capture in social programs. Using community and household level data of the Urban Poverty Project 2 in Indonesia, we find robust evidence regarding the existence elite capture. In relatively unequal community, the allocation of pro-poor projects is significantly lower. At the local decision making process, we find that only if the decision makers share the most similar characteristics with the non-elites in terms of consumption, education and social network, then the chance to get higher share of pro-poor projects increases.
Awards and Medals Competition 2011 - A Non-Linear Core–Periphery Model of Urban Growth in China (1990-2006)
Project :
Author : Zhao Chen, Ming Lu and Zheng Xu
Date : October 2011
Description : The core–periphery (CP) model of urban systems lacks evidence from real data for the nonlinear relationship between distance to core and market potential. China remains in the process of industrialization and globalization, thereby making it suitable for practical application of the CP model of urban systems. Using Chinese city-level data from 1990 to 2006, this paper estimates the impact of spatial interactions in China’s urban system on urban economic growth, and fills the gap between CP model of urban systems and reality. Our results show that a proximity to major ports and international markets is essential for urban growth. Moreover, the geography–growth relationship follows the ∽-shaped nonlinear pattern implied by the CP model in a monocentric urban system, presenting the existence of agglomeration shadow.
 
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