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Religious Festivals and Economic Development
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Year: 2021 Publisher: National Bureau of Economic Research

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Concessions, Violence, and Indirect Rule : Evidence from the Congo Free State
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Year: 2020 Publisher: Cambridge, Mass. National Bureau of Economic Research

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All colonial powers granted concessions to private companies to extract natural resources during the colonial era. Within Africa, these concessions were characterized by indirect rule and violence. We use the arbitrarily defined borders of rubber concessions granted in the north of the Congo Free State to examine the causal effects of this form of economic organization on development. We find that historical exposure to the concessions causes significantly worse education, wealth, and health outcomes. To examine mechanisms, we collect survey and experimental data from individuals near a former concession boundary. We find that village chiefs inside the former concessions provide fewer public goods, are less likely to be elected, and are more likely to be hereditary. However, individuals within the concessions are more trusting, more cohesive, and more supportive of sharing income. The results are relevant for the many places that were designated as concessions to private companies during the colonial era.

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Religious Festivals and Economic Development : Evidence from the Timing of Mexican Saint Day Festivals
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Year: 2021 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Does variation in how religious festivals are celebrated have economic consequences? We study the economic impacts of the timing of Catholic patron saint day festivals in Mexico. For causal identification, we exploit cross-locality variation in festival dates and in the timing of agricultural seasons. We estimate the impact of "agriculturally-coinciding" festivals (those coinciding with peak planting or harvest months) on long-run economic development of localities. Agriculturally-coinciding festivals lead to lower household income and worse development outcomes overall. These negative effects are likely due to lower agricultural productivity, which inhibits structural transformation out of agriculture. Agriculturally-coinciding festivals may nonetheless persist because they also lead to higher religiosity and social capital.

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The Effects of Fair Trade Certification : Evidence from Coffee Producers in Costa Rica
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Year: 2018 Publisher: Cambridge, Mass. National Bureau of Economic Research

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We study the effects of Fair Trade (FT) certification of coffee on producers and households in Costa Rica. Examining the production dynamics of all Costa Rican coffee mills from 1999-2014, we find that when global coffee prices are lower and the FT guaranteed minimum price is binding, FT certification is associated with a higher sales price, greater sales, and more revenues. We also find that certification reduces the probability of a mill closing down and exiting the industry. Looking at households, we find that certification is associated with higher incomes for farm owners. Part of this is due to a transfer of incomes from intermediaries whose incomes decrease due to FT. We find no effect of FT on unskilled workers, who are the more disadvantaged group within the coffee sector.

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Market Structure and Extortion : Evidence from 50,000 Extortion Payments
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Year: 2020 Publisher: Cambridge, Mass. National Bureau of Economic Research

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How does gang competition affect extortion? Using detailed data on individual extortion payments to gangs and sales from a leading wholesale distributor of consumer goods and pharmaceuticals in El Salvador, we document evidence on the determinants of extortion payments and the effects of extortion on firms and consumers. We exploit a 2016 nonaggression pact between gangs to examine how collusion affects extortion in areas where gangs previously competed. While the pact led to a large reduction in competition and violence, we find that it increased the amount paid in extortion by approximately 20%. Much of this increase was passed through to retailers and consumers: retailers experienced an increase in delivery fees, leading to an increase in consumer prices. In particular, we find an increase in prices for pharmaceutical drugs and a corresponding increase in hospital visits for chronic illnesses. The results point to an unintended consequence of policies that reduce competition between criminal organizations.

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Fallow Lengths and the Structure of Property Rights
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Year: 2024 Publisher: Cambridge, Mass. National Bureau of Economic Research

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We study a fundamental institution in many societies: the structure of property rights over land. Across societies, communal land rights have been more common than private land rights. We test the hypothesis that longer fallow requirements - the time needed to leave land uncultivated to restore fertility - led to a higher prevalence of communal property rights. Longer fallow requirements generate higher protection costs and therefore make communal rights more beneficial. We construct an ecological measure of the optimal fallow length for the most suitable staple crop across grid cells based on soil type, temperature, and climate. We find that places where land needs to be fallowed for longer periods are more likely to have communal property rights both historically and presently. We then examine the implications for efforts to title land. We find that World Bank land titling interventions are less effective in places with longer fallow requirements, suggesting a mismatch between development policy and underlying institutions. Finally, we examine implications for income inequality and conflict. We find that longer fallow requirements are associated with less inequality, less conflict, and greater resilience to negative shocks. Our results highlight the origins of property rights structures and how communal property rights interact with development policies.

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