Incidence, Depth and Severity of Children in Poverty

Recently, the first ever estimate of the number of children living poverty in developing countries was undertaken. The incidence of child poverty was estimated by establishing how many children suffer severe deprivation in at least one out of seven indicators which are internationally recognized as their rights as well as constitutive of poverty. This is a major step forward in the analysis of poverty. In this paper, we generalize these findings on the incidence of children living in poverty by exploring how to estimate the depth and severity of child poverty. Two countries can have the same proportion of children living in poverty, however, the actual plight of children could be very different depending on how many deprivations, on average, children suffer. In addition, even if they suffer from the same average number of deprivations, these deprivation could be the same for all children or be very unevenly distributed. We show how these considerations can be used to estimate the depth and severity of poverty. We use regional data to provide applied examples of this methodology. The method proposed in this paper is similar to the one used to estimate the incidence, depth and severity of income poverty. The paper also offers some possible generalizations and ways forward for future research.     

On the relationship between the reversed hazard rate and elasticity

Despite hazard and reversed hazard rates sharing a number of similar aspects, reversed hazard functions are far less frequently used. Understanding their meaning is not a simple task. The aim of this paper is to expand the usefulness of the reversed hazard function by relating it to other well-known concepts broadly used in economics: (linear or cumulative) rates of increase and elasticity. This will make it possible (i) to improve our understanding of the consequences of using a particular distribution and, in certain cases, (ii) to introduce our hypotheses and knowledge about the random process in a more meaningful and intuitive way, thus providing a means to achieving distributions that would otherwise be hardly imaginable or justifiable.     

Explaining the Mexican‐American Health Paradox Using Selectivity Effects

While typically socioeconomically disadvantaged, Mexican migrants in the United States tend to have better health outcomes than non‐Hispanic whites. This phenomenon is known as the “Hispanic health paradox.” Using data from Mexico and the United States, we examine several health outcomes for non‐Hispanic whites and Mexicans in the United States and in Mexico and employ Blinder–Oaxaca decompositions to help explain the paradox. We find evidence that selectivity is playing a significant role in the relatively healthy status of Mexican migrants in the United States. More importantly, there is evidence that health selectivity is a complex process and its effects typically do not work the same way for different health conditions and across genders. We also find evidence that some of migrants' health advantages are lost as they spend more time in the United States.     

WORKERS,WARRIORS, AND CRIMINALS: SOCIAL CONFLICT IN GENERAL EQUILIBRIUM

We incorporate appropriation activities (social conflict) into canonical models of trade and study how economic shocks and policies affect the intensity of conflict. We show that not all shocks that could make society richer reduce conflict: positive shocks to labor‐intensive industries diminish conflict, while positive shocks to capital‐intensive industries increase it. The key requirement is that conflict activities be more labor intensive than the economy as this determines how shocks affect the returns and costs of conflict. Our theory is consistent with several observed patterns of conflict and implies that empirical work should take into account the relative factor intensities of the productive and conflict sectors in each country. Incorporating appropriation into a canonic general equilibrium model affects what policies may be deemed desirable: in order to reduce conflict and generate Pareto‐improvements policy must be distortionary, while reforms that appear efficiency‐enhancing under the unrealistic assumption of perfect property rights may backfire. This offers one explanation for why reforms based on traditional models without appropriation may be delayed and become unpopular when implemented, and why societies may sympathize with seemingly inefficient redistribution.     

Evaluating the Move to a Linear Tax System in Germany and Other European Countries

This paper proposes a comparison of the results of tax policy analysis obtained on the basis of unitary and collective representations of the household. We first generate labour supplies consistent with the collective rationality, by use of a model calibrated on microdata as described in Vermeulen et al. [Collective Models of Household Labor Supply with Nonconvex Budget Sets and Nonparticipation: A Calibration Approach (2006)]. A unitary model is then estimated on these collective data and unitary and collective responses to a tax reform are compared. We focus on the introduction of linear taxation in Germany. The exercise is replicated for other European countries and other topical reforms. Distortions due to the use of a unitary model turn out to be important in predicting labour supply adjustments, in the design of tax revenue neutral reforms, and in predicting a reform’s welfare implications.

Participatory Skepticism: Ambivalence and Conflict in Popular Discourses of Participatory Democracy

In recent years researches have focused on the preferences of ordinary citizens towards democratic deepening, asking: Do people want more institutional participation? The present work analyzes how different classes of people envisage a participatory democracy and its problems. Supported by qualitative research based on 16 focus groups conducted in Spain between 2011 and 2013, it is shown that skepticism plays a central role in the views of participatory democracy. Doubts surrounding its viability, negative expectations on the responsiveness of governments and, overall, distrust of the capacities of ordinary citizens, contribute to skepticism. In some groups these beliefs lead to a rejection of participatory reforms. In other groups, participants harbor hopes and positive prospects. For them, the key point is faith in education as a shortcut to political equality.     

Properties of the elasticity of a continuous random variable. A special look at its behavior and speed of change

Belzunce et al. (1995 Belzunce, F., Candel, J., Ruiz, J.M. (1995). Ordering of truncated distributions through concentration curves. Sankhya 57:375–383. [Google Scholar]) define the elasticity for non negative random variables as the reversed proportional failure rate (RPFR). Veres-Ferrer and Pavía (2012 Veres-Ferrer, E.J., Pavía, J.M. (2012). La elasticidad: una nueva herramienta para caracterizar distribuciones de probabilidad. Rect@ 13:145–158. [Google Scholar], 2014b Veres-Ferrer, E.J., Pavía, J.M. (2014b). On the relationship between the reversed hazard rate and elasticity. Stat. Pap. 55:275–284.[Crossref], [Web of Science ®] , [Google Scholar]) interpret it in economic terms, extending its definition to variables that can also take negative values, and briefly present the role of elasticity in characterizing probability distributions. This paper highlights a set of properties demonstrated by elasticity, which shows many similar properties to the reverse hazard function. This paper pays particular attention to studying the increase/decrease and the speed of change of the elasticity function. These are important properties because of the characterizing role of elasticity, which makes it possible to introduce our hypotheses and knowledge about the random process in a more meaningful and intuitive way. As a general rule, it is observed the need for distinguishing between positive and negative areas of the support.     

Technology selection in the absence of standardised materials and processes: a survey in the UK composite materials supply chain

Composite materials is an industry where technology selection has major consequences as there is not a standard manufacturing process, nor are there standardised materials with defined or proscribed properties for companies to select as multiple solutions are technically viable. This research aims to identify key factors for manufacturing technology selection in the UK composite materials supply chain. Literature review and managers’ opinions were used to identify 18 factors affecting manufacturing technology selection. This was followed by a survey comprising the multi-tier supply chain of the composite materials industry. The results of the survey show ‘on time deliveries/service level to customers’, ‘improve quality’ and ‘reduce cycle time’ received the highest average ratings. In this study a correlation analysis was performed to identify the underlying dependencies between the factors investigated. The identification and use of underlying dependencies rather than highest average provided a more comprehensive picture of the factors that affect technology selection in the composite materials industry. For this study, experts in composite materials were asked to comment on the findings of the survey and their value to the industry. The results presented may assist companies in the composite materials industry with technology selection decision-making processes.     

Aftershocks of Chile's earthquake for an ongoing, large-scale experimental evaluation

Evaluation designs for social programs are developed assuming minimal or no disruption from external shocks, such as natural disasters. This is because extremely rare shocks may not make it worthwhile to account for them in the design. Among extreme shocks is the 2010 Chile earthquake. Un Buen Comienzo (UBC), an ongoing early childhood program in Chile, was directly affected by the earthquake. This article discusses (a) the factors the UBC team considered for deciding whether to put on hold or continue implementation and data collection for this experimental study; and (b) how the team reached consensus on those decisions. A lesson learned is that the use of an experimental design for UBC insured that the evaluation's internal validity was not compromised by the earthquake's consequences, although cohort comparisons were compromised. Other lessons can be transferred to other contexts where external shocks affect an ongoing experimental or quasi-experimental impact evaluation.