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Pollution and Expenditures in a Penalized Vector Spatial Autoregressive Time Series Model with Data-Driven Networks
Authors: --- --- --- --- --- et al.
Year: 2019 Publisher: Washington, D.C. : The World Bank,

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Abstract

This paper introduces a Spatial Vector Autoregressive Moving Average (SVARMA) model in which multiple cross-sectional time series are modeled as multivariate, possibly fat-tailed, spatial autoregressive ARMA processes. The estimation requires specifying the cross-sectional spillover channels through spatial weights matrices. the paper explores a kernel method to estimate the network topology based on similarities in the data. It discusses the model and estimation, focusing on a penalized Maximum Likelihood criterion. The empirical performance of the estimator is explored in a simulation study. The model is used to study a spatial time series of pollution and household expenditure data in Indonesia. The analysis finds that the new model improves in terms of implied density, and better neutralizes residual correlations than the VARMA, using fewer parameters. The results suggest that growth in household expenditures precedes pollution reduction, particularly after the expenditures of poorer households increase; that increasing pollution is followed by reduced growth in expenditures, particularly reducing the growth of poorer households; and that there are significant spillovers from bottom-up growth in expenditures. The paper does not find evidence for top-down growth spillovers. Feedback between the identified mechanisms may contribute to pollution-poverty traps and the results imply that pollution damages are economically significant.


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Environment and Development : Penalized Non-Parametric Inference of Global Trends in Deforestation, Pollution and Carbon
Authors: --- --- ---
Year: 2019 Publisher: Washington, D.C. : The World Bank,

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This paper revisits the issue of environment and development raised in the 1992 World Development Report, with new analysis tools and data. The paper discusses inference and interpretation in a machine learning framework. The results suggest that production gradually favors conserving the earth's resources as gross domestic product increases, but increased efficiency alone is not sufficient to offset the effects of growth in scale. Instead, structural change in the economy shapes environmental outcomes across GDP. The analysis finds that average development is associated with an inverted 'U'-shape in deforestation, pollution, and carbon intensities. Per capita emissions follow a 'J'-curve. Specifically, poverty reduction occurs alongside degrading local environments and higher income growth poses a global burden through carbon. Local economic structure further determines the shape, amplitude, and location of tipping points of the Environmental Kuznets Curve. The models are used to extrapolate environmental output to 2030. The daunting implications of continued development are a reminder that immediate and sustained global efforts are required to mitigate forest loss, improve air quality, and shift the global economy to a 2 Degree pathway.


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Strategies for private-sector development and civil-service reform in the Kurdistan Region--Iraq
Authors: --- --- --- --- --- et al.
ISBN: 0833086332 9780833086334 0833085913 9780833085917 Year: 2014 Publisher: [Place of publication not identified] Rand Corporation

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This monograph provides strategies to increase private-sector employment, including ways to reemploy civil-service workers in the private sector, in the Kurdistan Region - Iraq. Prepared for and at the request of the Kurdistan Regional Government (KRG), this monograph is based on a variety of research methods and analyses. These include a review of the existing literature, analyses of survey data, analysis of Kurdistan regional and Iraqi national documents and laws, and a qualitative assessment of numerous conversations with government officials and private-sector employers. The KRG can develop its private sector by removing obstacles to starting or expanding a business, by identifying sectors for which conditions are particularly favorable for private-sector growth and supporting them, and by outsourcing and privatizing some functions that the KRG currently performs. However, private-sector growth does not guarantee that civil-service workers will leave for private-sector employment. Civil-service workers will need the qualifications necessary for private-sector jobs and will have to expect that the benefits of private-sector employment outweigh the benefits of civil-service employment. At the same time, as the KRG devises methods for encouraging civil-service workers to leave for the private sector, a key challenge will be to ensure that the most productive employees stay with the KRG in order to ensure the proper functioning of government.

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