By Julián Messina, Francisco H.G. Ferreira and Sergio Firpo Long one of the world’s most unequal countries, Brazil surprised pundits by recording a massive reduction in household income inequality in the last couple of decades. Between 1995 and 2012, the country’s Gini coefficient for household incomes fell by seven points, from 0.59 to 0.52. (For comparison, all of the … [Read more...] about Falling Inequality: A Brazilian Whodunnit
Can Latin American Workers Dodge the Deaths of Despair?
For much of the last century, mortality rates in the United States fell steadily. But from 1998-2013, that trend reversed for a special demographic: non-Hispanic whites, aged 45-54. The problem, according to a new study by Nobel Laureate Angus Deaton, and fellow economist, Anne Case, lay in people lacking a college degree. Tens of thousands of those middle-aged whites were … [Read more...] about Can Latin American Workers Dodge the Deaths of Despair?
A New Trade World: Routes for Latin America and the Caribbean to Grow
It never rains but it pours sometimes seems to be just too appropriate a motto for Latin America and the Caribbean. Just as Argentina and Brazil appear set to post positive growth this year, uncertainty regarding global protectionism and the prospects of higher U.S. interest rates could dampen growth prospects across the region, as explained in the 2017 IDB Latin American and … [Read more...] about A New Trade World: Routes for Latin America and the Caribbean to Grow
Rethinking Taxation to Protect Savings
Taxation and savings are inextricably linked. While taxation puts more money in the government’s hands, it also decreases private savings by leaving people and firms with less income to save, invest, and grow the economy. Despite this clear relationship, the negative impact of taxation on private savings is often the blind spot when policymakers tackle tax reform in Latin … [Read more...] about Rethinking Taxation to Protect Savings
Global Warming: Why a Couple Degrees Makes All the Difference
What's the big fuss over 2 degrees Celsius? That's the temperature increase to which 195 countries agreed to limit global warming at the 2015 Paris climate talks. And it would seem to be trivial. A 2-degrees-Celsius (3.6 degrees Fahrenheit) increase from 4.4 to 6.4 Celsius (40-43.6 Fahrenheit), after all, doesn't have us shedding our Shetland sweaters for shorts and a tank top. … [Read more...] about Global Warming: Why a Couple Degrees Makes All the Difference