Development

Juan José Cruces, Eduardo Levy Yeyati, 20 May 2016

As Argentina’s protracted and litigious restructuring saga comes to an end, it is natural to ask what lessons the world can draw from this contentious process. This column takes a close look at Argentina’s ordeal, revealing just how idiosyncratic it has been. While it is therefore less influential than most people think, the long script yields important and unexpected lessons.

Emanuel Ornelas, 14 May 2016

For over half a century, one pillar of the world trading system has been the principle of ‘special and differential treatment’ (SDT) for developing countries. This column explores how SDT has impacted trade policy around the world. Although this strategy aims to help developing countries, in design and practice it seems to be biased against them. While there is no support for SDT as a growth-promoting strategy, there is a clear need for further research that explicitly tackles the empirical challenges that it presents. 

Volker Grossmann, Thomas Steger, 09 May 2016

The ratio of wealth to income has increased substantially since WWII. Despite the key role of housing wealth in this process, an appropriate macroeconomic model that can explain recent history and assess the future is still lacking. This column presents a novel macroeconomic model designed to investigate the evolution of housing wealth in a growing economy with a fixed overall land supply. A key implication is that rising house and land prices are natural phenomena in a growing economy. Further, rising wealth-to-income ratios appear to be an important trigger for the long-term growth of the finance industry.

Shyamal Chowdhury, Annabelle Krause, Klaus F. Zimmermann, 28 April 2016

Across the world, 650 million people still lack access to clean water, despite great progress over last two decades. This column looks at the case of Bangladesh, where around 45 million people are at risk from drinking water that is contaminated with naturally occurring arsenic. Drinking this water can lead to symptoms of arsenicosis, which have a significant negative impact on mental health and thus on household productivity and wellbeing.

Martin Foureaux Koppensteiner, Marco Manacorda, 18 April 2016

Stress and violence during the nine months in utero has been widely shown to have important effects on child development. To date this research has largely focused on extreme and relatively rare events. This column uses data from Brazil to explore how exposure to day-to-day violence can affect birth weight. The birth weight of newborns whose mothers are exposed to a homicide during their first trimester is significantly lower. This effect is smaller for mothers who live in more violent neighbourhoods, consistent with the interpretation that violence is more stressful when it is rare. 

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