Download or read book An Alternative Unifying Measure of Welfare Gains from Risk sharing written by Philippe Auffret and published by World Bank Publications. This book was released on 2001 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following Lucas's (1987) standard approach, welfare gains from international risk-sharing have been measured as the percentage increase in consumption levels that leaves individuals indifferent between, autarky and risk-sharing. The author proposes to measure welfare gains as the increase in consumption growth, instead of consumption levels. When the consumption process is non-stationary, the author's proposed measure has several attractive features: it does not depend on the horizon, and it is robust to alternative specifications of the consumption stochastic processes (from geometric Brownian processes, to Orstein-Ulhenbeck mean-reverting processes), and preferences (from constant relative risk aversion preferences to Kreps-Porteus preferences). The author then uses this measure to estimate potential welfare gains from international risk-sharing for a representative U.S. consumer. The author finds that if international risk-sharing leads only to a complete elimination of aggregate consumption volatility (with no impact on consumption growth), it represents gains to a U.S. consumer of only $ 12 a year on average. But if international risk-sharing also permits an increase in consumption growth, it may have a sizable impact on welfare. Each 0.5 percentage point increase in consumption growth, represents gains to a U.S. consumer of about $ 160 a year on average.
Download or read book An Alternative Unifying Measure of Welfare Gains from Risk Sharing written by Philippe Auffret and published by . This book was released on 2016 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: Unlike the traditional measure of welfare gains from risk-sharing, the new measure presented here does not depend on the horizon, and it is robust to alternative specifications of the consumption stochastic processes and preferences. This measure shows that if international risk-sharing eliminates volatility in aggregate consumption and leads to greater consumption growth, risk-sharing can have a sizable impact on consumer welfare.Following Lucas's (1987) standard approach, welfare gains from international risk-sharing have been measured as the percentage increase in consumption levels that leaves individuals indifferent between autarky and risk-sharing. Auffret proposes to measure welfare gains as the increase in consumption growth instead of consumption levels. When the consumption process is nonstationary, Auffret's proposed measure has several attractive features: it does not depend on the horizon, and it is robust to alternative specifications of the consumption stochastic processes (from geometric Brownian processes to Orstein-Ulhenbeck mean-reverting processes) and preferences (from constant relative risk aversion preferences to Kreps-Porteus preferences). The author then uses this measure to estimate potential welfare gains from international risk-sharing for a representative U.S. consumer.Auffret finds that if international risk-sharing leads only to a complete elimination of aggregate consumption volatility (with no impact on consumption growth), it represents gains to a U.S. consumer of only $12 a year on average. But if international risk-sharing also permits an increase in consumption growth, it may have a sizable impact on welfare. Each 0.5 percentage point increase in consumption growth represents gains to a U.S. consumer of about $160 a year on average.This paper - a product of the Economic Policy Sector Unit, Latin America and the Caribbean Region - is part of a larger effort in the region to analyze the impact of catastrophic risks on welfare and determine whether the catastrophic insurance function can serve a key developmental role in disaster prone countries. The author may be contacted at [email protected].
Download or read book risk sharing opportunities and maroeconomic factors in latin american and caribbean countries a consumption insurance assessment written by and published by World Bank Publications. This book was released on with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Aid Shocks and Growth written by Paul Collier and published by World Bank Publications. This book was released on with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: Not surprisingly, extreme negative export price shocks reduce growth. But these adverse effects can be mitigated through offsetting increases in aid. Indeed, targeting aid to countries experiencing negative shocks appears to be even more important for aid effectiveness than targeting aid to countries with good policies.
Download or read book From Monetary Targeting to Inflation Targeting written by Frederic S. Mishkin and published by World Bank Publications. This book was released on 2001 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: Experience with monetary targeting suggests that although it successfully controlled inflation in Switzerland and especially Germany, the special conditions that made it work reasonably well in those two countries are unlikely to be satisfied elsewhere. Inflation targeting is more likely to improve economic performance in countries that choose to have an independent domestic monetary policy, but there are subtleties in how inflation targeting is done. Lessons from industrial countries should be useful to central banks designing a framework for monetary policy.
Download or read book Introduction to Property Theory written by David P. Ellerman and published by World Bank Publications. This book was released on with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper inaugurates the mathematical treatment of property theory, proving the two fundamental theorems for the property system that correspond to the two fundamental theorems for the competitive price system.
Download or read book On the Duration of Civil War written by Paul Collier and published by World Bank Publications. This book was released on 2001 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The duration of large-scale violent civil conflict increases substantially if the society is composed of a few large ethnic groups, if there is extensive forest cover, and if the conflict has commenced since 1980. None of these factors affect the initiation of conflict. And neither the duration nor the initiation of conflict is affected by initial inequality or political repression.
Download or read book Evolution of Earnings and Rates of Returns to Education in Mexico written by Gladys Lopez Acevedo and published by World Bank Publications. This book was released on 2001 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inequality in education accounts for a large share of the inequality in earnings in Mexico. But the increase in earnings inequality does not appear to reflect a worsening in the distribution of education. The cause instead appears to be skill-biased technological change facilitated by increased economic openness.
Download or read book High consumption Volatility written by Philippe Auffret and published by World Bank Publications. This book was released on 2003 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: A history of repeated external and domestic shocks has made economic insecurity a major concern across the Caribbean region. Of particular concern to all households, especially the poorest segments of the population, is the exposure to shocks that are generated by catastrophic events or natural disasters. The author shows that despite high consumption growth, the Caribbean region suffers from a high volatility of consumption that decreases household welfare. After presenting some empirical evidence that consumption volatility is higher in the Caribbean region than in the rest of the world, he makes some empirically testable inferences that help explain consumption volatility. The author develops a conceptual framework for analyzing the effects of catastrophic events on household and aggregate welfare. According to this framework, the volatility of consumption comes from production shocks that are transformed into consumption shocks mostly because of underdeveloped or ineffective risk-management mechanisms. Auffret conducts an empirical analysis of the impact of catastrophic events on 16 countries (6 from the Caribbean region and 10 from Latin America) from 1970-99 and shows that catastrophic events lead to: 1) A substantial decline in the growth of output. 2) A substantial decline in the growth of investment. 3) A more moderate decline in consumption growth (most of the decline is in private consumption, while public consumption declines moderately. 4) A worsening of the current account of the balance of payments.
Download or read book Can Local Institutions Reduce Poverty written by Paula Donnelly-Roark and published by World Bank Publications. This book was released on 2001 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors present evidence that in Burkina Faso certain high-performing local institutions contribute to equitable economic development. They link reduced levels of poverty and inequality to a high degree of internal village organization. The structure of these high-performing local organizations means they can exist in a number of African countries because they depend more on internal participation rather than on any one country's cultural assets.
Download or read book Catastrophe Insurance Market in the Caribbean Region written by Philippe Auffret and published by World Bank Publications. This book was released on 2003 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Caribbean region suffers from a high degree of economic volatility. A history of repeated external and domestic shocks has made economic insecurity a major concern across the region. Of particular concern to all households, especially the poorest segments of the population, is the exposure to shocks that are generated by catastrophic events or natural disasters. The author develops a conceptual framework for risk management and shows that the insurance market for catastrophic risk in the Caribbean region remains a "thin" market characterized by "high" prices and "low" transfer of risk. He analyzes the possible market failures which could explain the lack of development of the catastrophe insurance market. Finally he outlines a set of recommendations for public sector interventions.
Download or read book Helping People Help Themselves written by Congress of Industrial Organizations (U.S.). Dept. of Education and Research and published by World Bank Publications. This book was released on 1963 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Global Trade and Food Safety written by John Sullivan Wilson and published by World Bank Publications. This book was released on 2001 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: How food safety is addressed in the world trade system is critical for developing countries that continue to rely on agricultural exports. An analysis shows that adopting a worldwide standard of a toxin affecting nuts and grains could increase trade in these commodities by $38 billion compaired with levels under today's widely divergent national standards.
Download or read book Financial Policies and the Prevention of Financial Crises in Emerging Market Economics written by Frederic S. Mishkin and published by World Bank Publications. This book was released on 2001 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years we have seen a growing number of banking and financial crises in emerging market countries, with great costs to their economies. But we now have a much better understanding of why these crises occur and a better idea how they can be prevented.
Download or read book Geographic Patters of Land Use and Lande Intensity in the Brazilian Amazon written by Kenneth M. Chomitz and published by World Bank Publications. This book was released on 2001 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Nearly 90 percent of agricultural land in the Brazilian Amazon is used for pasture, or has been cleared and left unused. Pasture on average is used with very low productivity. Analysis based on census tract data shows that agricultural conversion of forested areas in the wetter western Amazon would be even less productive, using current technologies.
Download or read book Deposit Insurance and Financial Development written by Robert J. Cull and published by World Bank Publications. This book was released on 2001 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: Do deposit insurance programs contribute to financial developmen? Yes, but only if the regulatory environment is sound.
Download or read book International Cartel Enforcement written by Simon J. Evenett and published by World Bank Publications. This book was released on 2001 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: Enforcement against international cartels surged in the late 1990s. Despite this enforcement activity, there are good reasons to doubt that national laws sufficiently deter cartel formation.
