nep-dev New Economics Papers
on Development
Issue of 2024‒10‒07
twelve papers chosen by
Jacob A. Jordaan, Universiteit Utrecht


  1. Estimating flexible income processes from subjective expectations data: evidence from India and Colombia By Manuel Arellano; Orazio Attanasio; Sam Crossman; Víctor Sancibrián
  2. The Mis-Education of Women in Afghanistan: From Wage Premiums to Economic Losses By Najam, Rafiuddin; Patrinos, Harry Anthony; Kattan, Raja Bentaouet
  3. Foreign Direct Investment, Geography, and Welfare By Jose Asturias; Marco Sanfilippo; Asha Sundaram
  4. Holi Crimes By Claudia Martínez V.; Rubén Poblete-Cazenave
  5. Mental Healthcare Access and the Treatment Gap in Indonesia By Muhammad Fikru Rizal; David W. Johnston; Nicole Black; Rohan Sweeney
  6. Class, Caste and Conspicuous Consumption in India By Mitra, Aruni; Mukherji, Ronit
  7. Effect of Growing Up Poor on Labor Market Outcomes: Evidence from Indonesia By Mayang Rizky; Daniel Suryadarma; Asep Suryahadi
  8. Map of Agricultural Potential in Bolivia By Lykke E. Andersen; Fabiana Karina Argandoña; Sergio Choque Sunagua; Diego Leonel Calderón Acebey; Ville Inkinen; Alfonso Malky
  9. The effect of mobile network quality on use of mobile application in Affordable Inputs Program of Malawi By Makoza, Frank
  10. From High-Stakes to Low: How Kenya’s Test Reforms Affect Teaching Practices By Amani Karisa; Moses Ngware; Francis Kiroro; Mulusew Jebena; Obiageri Bridget Azubuike; Jack Rossiter
  11. COVID-19 and Credit Reallocation: evidence from bank branch lending in Brazil By Thiago Christiano Silva; Carlos Eduardo de Almeida; Solange Maria Guerra; Benjamin Miranda Tabak
  12. Innovative Development Financing Amidst Uncertainty: How Can African Countries Leverage Domestic Resource Mobilization? By Arogundade, Sodiq; Ngarachu, Maria; Bandele, Olayinka

  1. By: Manuel Arellano (CEMFI, Centro de Estudios Monetarios y Financieros); Orazio Attanasio (Yale University and NBER); Sam Crossman (UK Government Economic Service); Víctor Sancibrián (CEMFI, Centro de Estudios Monetarios y Financieros)
    Abstract: We develop a methodology for modeling household income processes when subjective probabilistic assessments of future income are available. This allows us to flexibly estimate conditional cdfs directly using elicited individual subjective probabilities, and to obtain empirical measurements of subjective risk and persistence. We then use two longitudinal surveys collected in rural India and rural Colombia to explore the nature of income dynamics in those contexts. Our results suggest linear income processes are rejected in favor of more flexible versions in both cases; subjective income distributions feature heteroskedasticity, conditional skewness and nonlinear persistence.
    Keywords: Subjective expectations, income processes, panel data, heterogeneity, nonlinear persistence.
    JEL: C23 C81 D15
    Date: 2024–08
    URL: https://d.repec.org/n?u=RePEc:cmf:wpaper:wp2024_2413
  2. By: Najam, Rafiuddin; Patrinos, Harry Anthony; Kattan, Raja Bentaouet
    Abstract: This paper uses microdata from the Labor Force and Household Surveys conducted in Afghanistan to show the wage premium differences for education between men and women, documenting a significantly larger premium for women. This sharp distinction is causal as demonstrated by analysis of the compulsory schooling law. Recent bans on women's education and employment are projected to have significant negative impacts on women's future schooling, wage growth, and national income growth.
    Keywords: Returns to schooling, Returns to experience, Investments in education, Afghanistan
    JEL: C13 J31
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:glodps:1490
  3. By: Jose Asturias; Marco Sanfilippo; Asha Sundaram
    Abstract: We study the impact of FDI on domestic welfare using a model of internal trade with variable markups that incorporates intranational transport costs. The model allows us to disentangle the various channels through which FDI affects welfare. We apply the model to the case of Ethiopian manufacturing, which received considerable amounts of FDI during our study period. We find substantial gains from the presence of foreign firms, both in the local market and in other connected markets in the country. FDI, however, resulted in a modest worsening of allocative efficiency because foreign firms tend to have significantly higher markups than domestic firms. We report consistent findings from our empirical analysis, which utilises microdata on manufacturing firms, information on FDI projects, and geospatial data on improvements in the road network.
    Date: 2024–09
    URL: https://d.repec.org/n?u=RePEc:cen:wpaper:24-45
  4. By: Claudia Martínez V. (Access to Medicine Foundation, Netherlands); Rubén Poblete-Cazenave (Erasmus University Rotterdam)
    Abstract: A significant number of women experience physical or sexual violence throughout their lives, with a considerable portion of such incidents occurring in public spaces. Harmful social norms emphasizing men’s power over women have been highlighted as one crucial culprit. We study a public festivity in India, Holi (the festival of colors), where a common phrase: “Bura na mano Holi Hai†(Don’t feel offended, it’s Holi) has been misappropriated by many to justify inappropriate behavior. Leveraging different dates of the celebrations based on the lunar calendar, we document a dramatic increase of over 170% assaults against women during Holi. We analyze how perpetrators’ and victims’ gender norms drive violence against women. First, we find that Holi exacerbates existing attitudes towards violence against women, where there is higher violence in districts where men believe that violence against women is justified. Second, we find a male backlash effect, where there is higher violence against women in districts where women believe that violence against women is inappropriate. While patriarchal norms influence reporting behavior and women’s mobility, neither underreporting nor reduced mobility during Holi appear to be the main drivers of the second effect. Overall, this paper highlights the critical role of social norms and gender imbalances in shaping violence against women, underscoring the urgent need for intervention.
    Keywords: Violence against women, social norms, street harassment
    JEL: J16 K14 K42 O12 Z10
    Date: 2024–06–06
    URL: https://d.repec.org/n?u=RePEc:tin:wpaper:20240041
  5. By: Muhammad Fikru Rizal (Health Economics Group, School of Public Health and Preventive Medicine, Monash University); David W. Johnston (Centre for Health Economics, Monash Business School, Monash University); Nicole Black (Centre for Health Economics, Monash Business School, Monash University); Rohan Sweeney (Centre for Health Economics, Monash Business School, Monash University)
    Abstract: In many low- and middle-income countries (LMICs), a high proportion of people with mental health needs do not receive treatment, contributing to a significant “treatment gap”. Despite this, there is limited robust evidence on the socioeconomic factors that shape mental healthcare use in these settings. Using data from over 400, 000 adults in Indonesia, this study examines how wealth, education, and health insurance coverage influence the likelihood of accessing mental healthcare among those with probable depression. Indonesia is an important context for this analysis because undertreatment and stigma are particularly severe. We find that only 9.3% of those identified as having probable depression receive treatment. Wealth and health insurance are positively associated with the probability of mental healthcare utilisation, while education is not. The wealth gradient diminishes at the highest income levels, and we show this is possibly due to increased stigma. These findings underscore the importance of reducing financial barriers, such as through public health insurance expansion, and reducing stigma to address the mental health treatment gap in LMICs.
    Keywords: mental health, treatment gap, depression, mental healthcare
    JEL: I10 I14 I15 I18 D31
    Date: 2024–09
    URL: https://d.repec.org/n?u=RePEc:mhe:chemon:2024-16
  6. By: Mitra, Aruni; Mukherji, Ronit
    Abstract: Using nationally representative household-level panel data from India, we study status-signalling through conspicuous consumption across castes, religions and economic classes. Conditional on permanent income, Scheduled Castes (SC) and Scheduled Tribes (ST) spend more, while Muslims and Christians spend less on visible consumption compared to upper-caste Hindus. There is no significant difference between the visible expenditures of the upper caste and the Otherwise Backward Castes (OBC) and Sikhs and Jains. Lower-income households spend more on conspicuous consumption regardless of caste and religion than their richer counterparts. Conspicuous spending is higher during festivals and lower in areas with higher property crime rates and visible inequality. Among OBCs, SCs and Muslims, visible spending is higher among those receiving government transfers than those without public transfer income.
    Keywords: conspicuous consumption, caste, religion, income class
    JEL: D12 D70 O10
    Date: 2024–08–05
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:121824
  7. By: Mayang Rizky; Daniel Suryadarma; Asep Suryahadi
    Keywords: child poverty, Indonesia, instrumental variable, labor market outcomes
    URL: https://d.repec.org/n?u=RePEc:agg:wpaper:2020
  8. By: Lykke E. Andersen (SDSN Bolivia); Fabiana Karina Argandoña (SDSN Bolivia); Sergio Choque Sunagua (SDSN Bolivia); Diego Leonel Calderón Acebey (SDSN Bolivia); Ville Inkinen (University of Exeter); Alfonso Malky (Conservation Strategy Fund)
    Abstract: In this paper we develop a high-resolution map of agricultural potential in Bolivia by combining existing economic and geographical information at the most disaggregated level possible. We assume that farmers know which crops are most suitable for their environment and circumstances, and therefore start by determining the most common crop/livestock in each municipality, as well as the average yields and prices for these crops. We then proceed to develop a high-resolution Production Cost Factor, which depends on physical conditions (e.g. slope, soil quality, precipitation, minimum and maximum temperatures, etc.) as well as legal restrictions (e.g. protected area, near river, etc.). This allows us to generate a map of the net annual agricultural value per hectare. Finally, we calculate the net present value of agriculture by taking into account how many years a plot is typically continuously cultivated in each municipality.
    Keywords: Agricultural Economics, agricultural yields, spatial pricing, spatial production
    JEL: O13 Q10 R32
    Date: 2023–10
    URL: https://d.repec.org/n?u=RePEc:iad:sdsnwp:0523
  9. By: Makoza, Frank
    Abstract: Agriculture subsidy programs increase participation of rural households in food security and nutrition improvement in Malawi. Digital technologies e.g. mobile application (App) and biometrical identification, electronic database have been integrated in implementation of Affordable inputs program (AIP) to support effectiveness and efficient delivery of the program. This paper analysed the effect of mobile network quality on the use of e-AIP redemption benefits app in AIP. The study analysed secondary data using content analysis. The findings showed that network availability was the main cause of network glitches that affected the use of mobile application for redeeming agricultural inputs. The network glitches created further challenges to the agricultural inputs subsidy beneficiaries and stakeholders. The include loss to time, promotion of corruption and late processing of transactions affecting overall goal of supporting food security. The study suggest areas of further research and recommendations for the telecommunications regulator to improve on measuring mobile network performance to include quality of user experience.
    Keywords: Affordable inputs subsidy, Mobile application, mobile network quality, Food security, Malawi
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:zbw:esprep:302572
  10. By: Amani Karisa (The African Population and Health Research Center); Moses Ngware (The African Population and Health Research Center); Francis Kiroro (The African Population and Health Research Center); Mulusew Jebena (The African Population and Health Research Center); Obiageri Bridget Azubuike (Independent); Jack Rossiter (Center for Global Development)
    Abstract: Exams influence how teachers teach, but most of our understanding comes from cross-sectional studies in OECD countries, particularly the USA. These dynamics might not apply elsewhere. We surveyed 321 Kenyan teachers during their transition from high- to low-stakes assessments in primary schools—the first major assessment reform in nearly 40 years. Our findings suggest that while the stakes for students have fallen, teachers still perceive these 'low-stakes' assessments as impacting their appraisals, career progression, and school reputation. Despite this, respondents generally view assessments as positive motivators and useful tools, and classroom practices show many similarities regardless of assessment type. However, the transition may be altering the pathways through which assessments influence teaching. Regular classroom assessments are becoming more central and are already shaping instructional strategies. Additionally, local tests, which fall outside the main reform, exert significant influence on how teachers approach their work.
    Date: 2024–09–05
    URL: https://d.repec.org/n?u=RePEc:cgd:wpaper:702
  11. By: Thiago Christiano Silva; Carlos Eduardo de Almeida; Solange Maria Guerra; Benjamin Miranda Tabak
    Abstract: This study examines how the COVID-19 pandemic influenced bank branch lending behavior in Brazil. Using the different timing and severity of COVID-19 across Brazilian municipalities and identified bank branch credit operations, we construct a branch-specific measure of COVID-19 exposure. Our findings reveal a notable credit reallocation in Brazil during the first year of the pandemic: inland branches more affected by COVID-19 significantly reduced credit to capital-based borrowers while increasing lending to inland clients, driven by heightened risk perceptions of capital-based borrowers. This shift was particularly evident among less liquid and public banks and in regions with more diversified local credit markets. The reallocation was primarily driven by personal loans, indicating that government stimulus measures effectively sustained credit flow to firms despite higher borrowing costs. Our study provides critical insights into the heterogeneous effects of the pandemic on credit markets, highlighting the importance of bank characteristics and regulatory interventions in ensuring financial stability during crises.
    Date: 2024–09
    URL: https://d.repec.org/n?u=RePEc:bcb:wpaper:601
  12. By: Arogundade, Sodiq; Ngarachu, Maria; Bandele, Olayinka
    Abstract: In achieving the African Union Agenda 2063 – The Africa We Want – and financing SDGs, African economies will require an unprecedented mobilization of resources. This study examines the role of financial development on the nexus between domestic resource mobilization (DRM) and inclusive growth using an unbalanced panel of 31 African countries from 1990-2022. The study finds that: (1) in the presence of a sound financial sector, DRM contributes positively to inclusive growth; (2) African countries with higher inclusive growth benefit more from the positive impact of tax revenue than those with lower growth; (3) regional characteristics differ in terms of the impact of DRM on inclusive growth; and (4) countries must maintain an annual threshold of DRM and financial development to harness the benefits of DRM. The empirical results are robust to different measures of DRM and estimators (two-step system GMM, Machado and Silva quantile regression, and the dynamic panel threshold model). In leveraging the benefits of DRM, the study recommends that African governments should improve their financial sector, and they can learn from the success story of the South African Financial Sector Development and Reform Program.
    Keywords: Inclusive Growth, Domestic Resource Mobilization, Financial development, System GMM, Machado and Silva quantile regression, Dynamic Panel Threshold.
    JEL: D6 D60 H60
    Date: 2024–09–13
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:122041

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