Red de Centros, a network of nearly 350 research institutes, is calling for proposals for the project Fiscal transfers in Latin America: What are their composition and cyclicality patterns? It involves the composition of fiscal transfers (unemployment insurance, conditional transfers, transfers to decentralized public entities, etc.) and their contribution to counter-cyclical … [Read more...] about Fiscal Transfers in Latin America: Red de Centros Is Calling for Proposals
Macroeconomics and Finance
When Too Much External Borrowing to Finance Investment Gets Dangerous
Life is full of people who never save, spend like sailors, and find from one day to the next that they’ve maxed out on their credit cards and must cut back on their lifestyle and even long-term investments like their children’s education. Countries are similar. Nations that don’t save sufficiently and finance investment with borrowing from abroad can suffer catastrophes when … [Read more...] about When Too Much External Borrowing to Finance Investment Gets Dangerous
Firms’ Productivity and Workers’ Wages
Does the productivity of your firm affect your pay? Standard microeconomic theory says no. Firms have no power over setting wages when markets are perfectly competitive. All they can do is hire as many workers as they need for each type of labor at their respective market wages. Clearly, this view runs contrary to popular perception. Some firms pay higher wages than others. In … [Read more...] about Firms’ Productivity and Workers’ Wages
Can New Methods Sharpen Targeting in Programs for the Poor?
In recent years, developing countries have struggled to make social welfare programs for the poor and vulnerable more efficient. The distribution of preventative health products is an important example. Such products can help the poor stave off malnutrition and disease and improve overall productivity. But they have traditionally been distributed using subsidized pricing, and … [Read more...] about Can New Methods Sharpen Targeting in Programs for the Poor?
Confronting the Risks of Corporate Debt in Latin America
Beginning in the early 2000s, corporations in emerging economies began to massively increase their borrowing in international capital markets. The reasons why this occurred are not completely clear though they most likely involve low interest rates globally and the search for higher yields by international investors. In any case, the surge was dramatic: between 2004 and 2014, … [Read more...] about Confronting the Risks of Corporate Debt in Latin America