When researchers consider the economic costs of climate change, they often estimate models based on historical temperature and economic data. But it can be difficult to account for adaptation. Typically, these models estimate an upper bound of the economic costs of climate change. Future adaptation, it is assumed, will reduce those costs. But adaptation could play a more … [Read more...] about Can Small Farmers Adapt to Climate Change Shocks?
Social Issues
How Political Polarization Holds Latin America Back
There are countries where there is a great deal of consensus on issues of national importance, and countries where that consensus is lacking, where the population is divided, distrustful of political opponents, and unwilling to compromise. The latter are polarized societies, and their cleavages lead to worse outcomes in a whole gamut of areas, ranging from greater insecurity … [Read more...] about How Political Polarization Holds Latin America Back
Can Government and Civil Society Unite to Combat Corruption?
Corruption is a public enemy. Brazil's ongoing Lava Jato scandal is only the most recent prominent example of what can happen when government expenditures are undertaken with insufficient transparency and accountability. Pointing out a problem is one thing. Learning how to solve it—or at least contain it—is a different issue altogether, and one that raises a variety of … [Read more...] about Can Government and Civil Society Unite to Combat Corruption?
When Politics Distorts Tax Reform
The voters of the United States will ultimately weigh in on the wisdom of the large $1.5 trillion tax cuts headed for a final vote before the end of the year in the U.S. Congress. They will make it clear in the November 2018 legislative elections whether they believe that steep reductions in corporate taxes and income taxes for the wealthy are a sound investment in economic … [Read more...] about When Politics Distorts Tax Reform
Promoting Competition to Boost Welfare Through Social Programs
Since the mid-1990s, governments in Latin America have used conditional cash transfers (CCTs) to reduce poverty, improve health, and boost school enrollment for tens of millions of people. But like any social program that increases income and hence demand, CCTs pose their own risks if they allow for goods and services to be purchased in a non-competitive environment. That is … [Read more...] about Promoting Competition to Boost Welfare Through Social Programs