Showing papers by "World Bank published in 1986"
TL;DR: In this paper, the authors have developed models of agricultural households that combine producer and consumer behavior in a theoretically consistent fashion, and compared the policy implications of the approach for such matters as the welfare of farm households, the size of marketed surplus, the demand for nonagricultural goods and services, and for hired labor, and the availability of budget revenues and foreign exchange.
Abstract: Semicommercial farms that produce multiple crops make up a large part of the agricultural sector in developing economies. These farms or agricultural households combine two fundamental units of microeconomic analysis : the household and the firm. Traditional economic theory has dealt with these units seperately. But in developing economies in which peasant farms dominate, their interdependence is of crucial importance. Researchers have developed models of agricultural households that combine producer and consumer behavior in a theoretically consistent fashion. Recent empirical applications of these models have extended them and expanded the range of policy issues which can be investigated using this general framework. This article reports the results of empirical applications of this model in India, Indonesia, Japan, the Republic of Korea, Malaysia, Nigeria, Senegal, Sierra Leone, Taiwan, and Thailand. It provides a comparative analysis of the policy implications of the approach for such matters as the welfare of farm households, the size of marketed surplus, the demand for nonagricultural goods and services, and for hired labor, and the availability of budget revenues and foreign exchange.
308 citations
TL;DR: In this paper, the authors present evidence of the failure of government intervention in rural credit markets of LDCs in the past three decades, and show how lessons for policy analysis can be drawn from modern theory, particularly those theories focussing on credit rationing in competitive markets and interlinking of credit contracts with labor and land contracts.
274 citations
TL;DR: It is concluded that local interventions or national policies designed to improve child nutritional status could have important educational as well as health benefits.
241 citations
TL;DR: This article showed that a successful devaluation raises the real (in terms of domestic goods) debt service burden, causing a Krugman-Taylor like contractionary effect on aggregate demand, while a cut in aggregate supply leads to upward pressure on inflation while a reduction in aggregate demand tends to abate inflation.
214 citations
202 citations
TL;DR: Though results from a geographically limited sample should be generalized only with extreme caution, it does appear likely that malnutrition in rural China remained sufficiently prevalent in 1979 to retard the school advancement of large numbers of children.
178 citations
TL;DR: In this paper, the authors test various hypotheses as to the determinants of intra-industry trade in thirty-eight developed and developing countries exporting manufactured goods and find that the extent of intra industry trade increases with the level of economic development, the size of domestic markets, and the openness of national economies, while similarities in regard to trade orientation and the existence of border trade, as well as intercorrelation between the gross national product and per capita GNP, have reduced the statistical significance of the regression coefficients for these variables for the developed country group.
165 citations
TL;DR: In this article, the following sections are included:Introduction, Financial Reforms, Financial Deepening and Financial CrisisStylized Outcomes: Savings, Investment and GrowthFinancial Liberalization, Savings and InvestmentFinancial Resource Allocation at the Micro Level
Abstract: The following sections are included:IntroductionFinancial Reforms, Financial Deepening and Financial CrisisStylized Outcomes: Savings, Investment and GrowthFinancial Liberalization, Savings and InvestmentFinancial Resource Allocation at the Micro LevelConclusions
119 citations
TL;DR: In the important debate between the proponents of direct (basic needs) and indirect (economic growth) measures of promoting welfare, Sri Lanka has frequently been cited as one country which has successfully pursued the direct approach as mentioned in this paper.
Abstract: In the important debate between the proponents of direct (basic needs) and indirect (economic growth) measures of promoting welfare, Sri Lanka has frequently been cited as one country which has successfully pursued the direct approach. It has raised living standards without much cost in terms of reduced growth. This conclusion, however, is based on analyses which do not account for the initial conditions of the countries being compared. After methodologically incorporating these concerns, neither the improvement in living standards nor the 2.0 percent per capita growth rate during the period of direct policy measures (1960-78) was exceptional. In contrast, during the period of more indirect growth-promoting policies (1977-84), i) economic growth more than doubled to an average rate of 4.3 percent per capita per annum; ii) expenditure inequality did not significantly change; iii) consumption expenditures of the population, and the poor, generally increased; and iv) several living standard indicators continued to improve.
94 citations
TL;DR: In this article, the authors construct an open economy disequilibrium model to assess the welfare effects of aid in different macroeconomic regimes, and show that aid has different effects in different unemployment regimes because it increases the social costs of wage-price rigidities in the classical regime but decreases them in the Keynesian regime.
93 citations
TL;DR: In this article, the authors describe and interpret the outcome of the reform packages in Chile, Argentina, and Uruguay during 1974-83, showing that all three countries experienced initial success with the rescue operation from the severe macroeconomic disequilibrium at the inception of the reforms.
Abstract: This paper describes and interprets the outcome of the reform packages in Chile, Argentina, and Uruguay during 1974-83. It is shown that all three countries experienced initial success with the rescue operation from the severe macroeconomic disequilibrium at the inception of the reforms. The paper then discusses the areas in which the reforms were successful and why the countries experienced boom bust cycles resulting in large increases in external indebtedness and internal financial crises. The paper attributes the failure of the reforms to a combination of policy inconsistencies, implementation difficulties, and market frictions. Jointly, these factors generated a sustained appreciation of the real exchange rate and a large spread between the cost of dollar-denominated and peso-denominated loans. In turn, the appreciation and interest rate difference created protracted opportunities for arbitrage that distracted firms from the business of production.
TL;DR: Examination of utilization patterns of traditional and modern health services in Indonesia, using household sample survey socio-economic data in conjunction with community-level data on availability of services suggests that both income and availability of Services matter and hence that public services are more important to the poor than to the rich.
TL;DR: In this article, the authors evaluate the impact of these reforms on Egypt's public sector firms in terms of their productivity performance and find an important asymmetry in the consequences of the reforms between the rapidly expanding import substitution sector with high productivity growth and the stagnant traditional export sector.
TL;DR: In this paper, the authors explain the rationale and characteristics of cost sharing arrangements in rural developing economies, focusing on the risk and incentive properties of alternative cost contracts and on their ability to adapt to environmental changes.
Abstract: This paper explains the rationale and describes the characteristics of cost sharing arrangements in rural developing economies, focusing on the risk and incentive properties of alternative cost contracts and on their flexibility—their ability to adapt to environmental changes. It is shown that where labor inputs are difficult to monitor, the rule that cost shares and output shares be equalized will not hold and is not "constrained pareto efficient," and that cost-sharing contracts have a decided advantage over contracts which specify the level of inputs whenever there are asymmetries of information regarding production technology between the landlord and the tenant.
TL;DR: In this article, a repeated game version of the basic Brander and Krugman (1983) model is analyzed, and it is shown that no trade, which is welfare-reducing when transportation costs are negligible, is a strong Nash equilibrium of the supergame.
TL;DR: A model for the problem of a locating appropriate levels and types of cleanup capability to respond to oil spills andocating such capability among points of high oil spill potential is developed and its possible uses within existing and alternative policy environments are discussed.
Abstract: In this paper we develop a model for the problem of a locating appropriate levels and types of cleanup capability to respond to oil spills and b allocating such capability among points of high oil spill potential. The model takes into account frequency of spill occurrence, variability of spill volumes, different cleanup technologies, equipment efficiency and operability, fixed costs to open a facility, equipment acquisition, transportation and operating costs, and costs of damage as functions of spill volume and level of response. The model can also accept policy stipulations on response times. We present an illustrative application of the model in the New England region and discuss its possible uses within existing and alternative policy environments.
TL;DR: In this article, the authors extend the existing literature on educational cost functions in the following ways: it employs flexible cost functions to comply with prior theoretical expectations about price homogeneity without the imposition of overly restrictive assumptions regarding the technological structure; it examines possible complementarities in the provision of different levels of schooling by treating schools as multiproduct firms; and it uses disaggregated school-level data for two developing countries.
TL;DR: In this article, the authors show that the institutional structure of the economy may indeed be an important determinant of whether a particular innovation will or will not be adopted in a rural environment.
TL;DR: In this paper, the authors trace the relationship from political objectives to use of oil windfalls and the effects on the non-oil economy and show that diversification through gas-based industrialization is not likely to replace shrinking oil income.
TL;DR: In this article, the authors present an approach to macroeconomic model building that is based on two versions of a social-accounting matrix (SAM), one version contains data for a base year, whereas the cell entries of the other are algebraic expressions for the determination of the corresponding transaction values.
TL;DR: The analysis reveals that treating 80% of patients through ambulatory R and E regimes would have reduced total health expenditures for tuberculosis care by two thirds compared to inpatient regimes based on TH, and the number of people complying and cured would have doubled.
TL;DR: In this paper, the authors used the Chilean manufacturing censuses of 1967 and 1979 to examine the effects of the Chilean reforms in the mid-1970s on market structure and performance.
TL;DR: This article examined the literature concerning the hypothesis that the savings rate itself is a function of the population growth rate and this effect exacerbates the negative effect of population on economic growth and concluded that both population growth and savings rates are inextricably tied up in the process of economic development.
TL;DR: In this paper, the authors discuss evidence of the loss of tree stocks in farming regions of Sub-Saharan African countries, and the associated ecological changes taking place, and discuss the economic merits and limitations of two forms of public investment in afforestation: (i) in forestry management and plantation programs, with special reference to watershed and shelterbelt plantings, and (ii) in various forms of support for the development of agro-forestry.
TL;DR: In this paper, the limitations from the demand side for innovation must have been at least as important as short research history, to the difficulties of harsh climate and poor soils, or to poor management of research efforts.
TL;DR: The results presented in this paper reinforce the conclusion that blindness, especially onchocerciasis associated blindness, is of greater social and economic significance than usually estimated.
Abstract: Cross-sectional surveys for the prevalence of blindness in West African savanna villages misrepresent the actual burden which blindness imposes on communities. High mortality in the blind, resulting in a shorter life expectancy as compared to non-blind, is associated with high incidence rates and with a rapid turn-over in the blind population. Data collected in Burkina Faso indicate that, in hyperendemic villages, 46% of males and 35% of females aged 15 are likely to become blind before they die. Respective rates in mesoendemic villages are 14% in males and 9·8% in females. The results presented in this paper reinforce the conclusion that blindness, especially onchocerciasis associated blindness, is of greater social and economic significance than usually estimated.
TL;DR: Demand-side and supply-side subsidies have been compared through a series of social experiments such as the Experimental Housing Allowance Program (EHAP) and rigorous evaluations of major subsidized housing programs as discussed by the authors.
TL;DR: In this paper, a social network is seen as redistributing income to those member households who fall below a perceived basic needs threshold, which can be seen as the outcome of an implicit social contract whereby households insure themselves against the risk of falling below the threshold.
TL;DR: In this paper, the recent emergence of financial crises in the "Southern Cone" countries of South America has been discussed and it is argued that the proximate cause of this pattern was wild fluctuation in the expected real return on financial assets.