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2011 (8)

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Digital
Reshaping Institutions : Evidence on External Aid and Local Collective Action
Authors: --- ---
Year: 2011 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Abstract

Although institutions are believed to be key determinants of economic performance, there is limited evidence on how they can be successfully reformed. The most popular strategy to improve local institutions in developing countries is “community driven development” (CDD). This paper estimates the impact of a CDD program in post-war Sierra Leone using a randomized experiment and novel outcome measures. We find positive short-run effects on local public goods provision, but no sustained impacts on fund-raising, decision-making processes, or the involvement of marginalized groups (like women) in local affairs, indicating that CDD was ineffective at durably reshaping local institutions.


Digital
Education as liberation?
Authors: --- --- ---
Year: 2011 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Abstract

Less developed regions have experienced massive increases in both education and democracy over the past half century, and it is widely claimed that many recent democratic transitions have been propelled by increasingly educated youth populations. Scholars have also speculated about education's social and political impacts, variously arguing that education promotes “modern” pro-democratic and secular attitudes and weakens ethnic attachments; that it instills acceptance of existing authority; and that it empowers the disadvantaged. These views have informed international efforts to promote education in poor countries, often focusing on girls. We assess the social and political impacts of a randomized girls' merit scholarship incentive program in Kenya that raised test scores and secondary school enrollment. Counter to modernization theory, increased human capital did not produce more pro-democratic or secular attitudes and, if anything, it strengthened ethnic identification. Consistent with the empowerment view, young women in program schools had fewer arranged marriages and were less likely to accept domestic violence as legitimate. Moreover, the program increased objective political knowledge, and reduced both acceptance of political authorities and satisfaction with politics. However, in our Kenyan context, this rejection of the status quo did not translate into greater perceived political efficacy, community participation or voting intentions. Instead, the program increased the perceived legitimacy of political violence. We argue that selection bias may account for the view that education instills greater acceptance of authority.


Digital
Incorporating Climate Uncertainty into Estimates of Climate Change Impacts, with Applications to U.S. and African Agriculture
Authors: --- --- --- ---
Year: 2011 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Abstract

A growing body of economics research projects the effects of global climate change on economic outcomes. Climate scientists often criticize these articles because nearly all ignore the well-established uncertainty in future temperature and rainfall changes, and therefore appear likely to have downward biased standard errors and potentially misleading point estimates. This paper incorporates climate uncertainty into estimates of climate change impacts on U.S. agriculture. Accounting for climate uncertainty leads to a much wider range of projected impacts on agricultural profits, with the 95% confidence interval featuring drops of between 17% to 88%. An application to African agriculture yields similar results.


Digital
Do Cash Transfers Improve Birth Outcomes? Evidence from Matched Vital Statistics, Social Security and Program Data
Authors: --- --- ---
Year: 2011 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Abstract

There is limited empirical evidence on whether unrestricted cash social assistance to poor pregnant women improves children's birth outcomes. Using program administrative micro-data matched to longitudinal vital statistics on the universe of births in Uruguay, we estimate that participation in a generous cash transfer program led to a sizeable 15% reduction in the incidence of low birthweight. Improvements in mother nutrition and a fall in labor supply, out-of-wedlock births and mother's smoking all appear to contribute to the effect. We conclude that, by improving child health, unrestricted unconditional cash transfers may help break the cycle of intergenerational poverty.


Book
Incorporating Climate Uncertainty into Estimates of Climate Change Impacts, with Applications to U.S. and African Agriculture
Authors: --- --- --- --- --- et al.
Year: 2011 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Abstract

A growing body of economics research projects the effects of global climate change on economic outcomes. Climate scientists often criticize these articles because nearly all ignore the well-established uncertainty in future temperature and rainfall changes, and therefore appear likely to have downward biased standard errors and potentially misleading point estimates. This paper incorporates climate uncertainty into estimates of climate change impacts on U.S. agriculture. Accounting for climate uncertainty leads to a much wider range of projected impacts on agricultural profits, with the 95% confidence interval featuring drops of between 17% to 88%. An application to African agriculture yields similar results.

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Book
Education as Liberation?
Authors: --- --- --- ---
Year: 2011 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Abstract

Scholars have long speculated about education's political impacts, variously arguing that it promotes modern or pro-democratic attitudes; that it instills acceptance of existing authority; and that it empowers the disadvantaged to challenge authority. To avoid endogeneity bias, if schooling requires some willingness to accept authority, we assess the political and social impacts of a randomized girls' merit scholarship incentive program in Kenya that raised test scores and secondary schooling. We find little evidence for modernization theory. Consistent with the empowerment view, young women in program schools were less likely to accept domestic violence. Moreover, the program increased objective political knowledge, and reduced acceptance of political authority. However, this rejection of the status quo did not translate into greater perceived political efficacy, community participation, or voting intentions. Instead, the perceived legitimacy of political violence increased. Reverse causality may help account for the view that education instills greater acceptance of authority.

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Book
Do Cash Transfers Improve Birth Outcomes? Evidence from Matched Vital Statistics, Social Security and Program Data
Authors: --- --- --- ---
Year: 2011 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Abstract

There is limited empirical evidence on whether unrestricted cash social assistance to poor pregnant women improves children's birth outcomes. Using program administrative micro-data matched to longitudinal vital statistics on the universe of births in Uruguay, we estimate that participation in a generous cash transfer program led to a sizeable 15% reduction in the incidence of low birthweight. Improvements in mother nutrition and a fall in labor supply, out-of-wedlock births and mother's smoking all appear to contribute to the effect. We conclude that, by improving child health, unrestricted unconditional cash transfers may help break the cycle of intergenerational poverty.

Keywords


Book
Reshaping Institutions : Evidence on Aid Impacts Using a Pre-Analysis Plan
Authors: --- --- ---
Year: 2011 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Abstract

Although institutions are believed to be key determinants of economic performance, there is limited evidence on how they can be successfully reformed. Evaluating the effects of specific reforms is complicated by the lack of exogenous variation in the presence of institutions; the difficulty of empirically measuring institutional performance; and the temptation to "cherry pick" a few novel treatment effect estimates from amongst the large number of indicators required to capture the complex and multi-faceted subject. We evaluate one attempt to make local institutions more egalitarian by imposing minority participation requirements in Sierra Leone and test for longer term learning-by-doing effects. In so doing, we address these three pervasive challenges by: exploiting the random assignment of a participatory local governance intervention, developing innovative real-world outcomes measures, and using a pre-analysis plan to bind our hands against data mining. The specific program under study is a "community driven development" (CDD) project, which has become a popular strategy amongst donors to improve local institutions in developing countries. We find positive short-run effects on local public goods provision and economic outcomes, but no sustained impacts on collective action, decision-making processes, or the involvement of marginalized groups (like women) in local affairs, indicating that the intervention was ineffective at durably reshaping local institutions. We further show that in the absence of a pre-analysis plan, we could have instead generated two highly divergent, equally erroneous interpretations of the impacts--one positive, one negative--of external aid on institutions.

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