Bounded learning by doing,inequality, and multi-sectorgrowth: A middle-class perspective.

This paper develops a multi-sector model of middle-class-led economic growth, whereby (i) learning by doing interacts with scale economies and nonhomothetic preferences giving rise to endogenous growth, and (ii) the “middle class” label is an endogenous outcome of the model, depending on past economic growth. The emphasis is placed on the entire income distribution, which […]

Wealth and inequality gradientsfor the detection and control ofhypertension in older individualsin middle-income economiesaround 2007-2015

Socioeconomic inequalities in the detection and treatment of non-communicable diseases represent a challenge for healthcare systems in middle-income countries (MICs) in the context of population ageing. This challenge is particularly pressing regarding hypertension due to its increasing prevalence among older individuals in MICs, especially among those with lower socioeconomic status (SES). Using comparative data for […]

Productivity gaps atformal and informalmicrofirms

Although evidence of a productivity gap between formal and informal firms has been observed, this ‘‘formality premium” has been less explored for microfirms. The informality of microfirms is a central concern in low- and middle-income countries, leading to a crucial demand for designing economic policies addressing this issue. We fill this void by estimating a […]

Income inequality andself-rated health statusin Colombia

Background: The negative association between income inequality and health has been known in the literature as the Income Inequality Hypothesis (IIH). Despite the multiple studies examining the validity of this hypothesis, evidence is still inconclusive, and the debate remains unsolved. In addition, relatively few studies have focused their attention on developing or emerging economies, where […]

Financial inclusion and business practices of microbusiness in Colombia

Financial inclusion is known to be relevant for improving the growth perspectives of microbusinesses. This research has three aims. First, to explore how adopting business practices can impact the usage of financial products and services of these firms. Second, to determine if higher levels of microbusinesses’ formalization mediate the impact. Third, to establish if there […]

Corruption and Firms

We estimate the causal real economic effects of a randomized anti-corruption crackdown on local governments in Brazil using rich micro-data on corruption and firms. After anti-corruption audits,municipalities experience an increase in the number of firms concentrated in sectors most dependent ongovernment relationships and public procurement. Through the estimation of geographic spillovers andadditional tests, we show […]

Reintegration and forgiveness to ex-combatants in Colombia

The aftermath of over 50 years of uninterrupted conflict is not only underdevelopment and casualties. It is also the loss of social ties, the mistrust, and the difficulties to build a society where victims live with those who once were their perpetrators. These difficulties are many times linked to strong negative affect, prejudice, and skepticism […]

How do risk attitudes affect pro-social behavior? Theory and experiment

We explore how risk preferences affect pro-social behavior under uncertainty. We analyze a modified dictator game in which the dictator can, by reducing her own sure payoff, increase the odds that an unknown recipient wins a lottery. We first augment a standard social preferences model with reference-dependent risk attitudes and then test the model’s predictions […]