World Institute for Development Economics Research

About: World Institute for Development Economics Research is a facility organization based out in Helsinki, Finland. It is known for research contribution in the topics: Poverty & Population. The organization has 110 authors who have published 525 publications receiving 17316 citations.

Climate Forecasts in Mozambique: An Economic Perspective

Abstract: Recent food shortages in Southern Africa, induced by rainfall variability but compounded by problems of governance and rising food prices, have resulted in massive relief efforts. A recent scientific innovation - supplying farmers with seasonal climate forecasts - has been touted as a way to increase preparedness for such situations. This book examines how climate forecasts are used by the agricultural community in Southern Africa. Based on a workshop funded by the World Bank, it covers a broad set of issues related to the use of seasonal forecasts, including factors that constrain users' capacities to respond. Case studies presented in the book explore how forecasts can potentially increase production and food security among a population highly dependent on agriculture and vulnerable to climate variability. The book reflects on how the production, delivery and uptake of seasonal forecasts might be improved, as well as the limitations to their usefulness, and it should catalyse future thinking and research in this field.

Tax Policy and Employment: How Does the Swedish System Fare?

Abstract: This paper reviews the literature on optimal taxation of labour income and the empirical work on labour supply and the elasticity of taxable income in Sweden. It also presents an overview of Swedish taxation of labour income, offers calculations on the development in effective marginal tax rates and participation tax rates, and estimates, using the difference-in-differences method, the impact of tax incentives on employment rates of elderly workers. After this background, we ponder possibilities for reforming the Swedish tax system to improve its labour market impacts. We suggest better targeting the earned income tax credit at families and low-income workers, lowering the top marginal tax rates, and maintaining the tax incentives for older workers.

Aid, Political Business Cycles and Growth in Africa

Abstract: This study develops a model of opportunistic behaviour in which an incumbent government resorts to expansionary fiscal and/or monetary stimuli to foster economic growth and thus, maximize the probability of re-election. Using a panel dataset of 31 African countries covering the period 1980 to 2009, we test whether donor aid facilitates such political business cycles and investigate their effect on growth. We find evidence that donors, through guaranteeing support to incumbent governments, may unwittingly instigate political business cycles. With forbearance, and sometimes complicity by donors, aid seems to allow incumbent governments to instigate macroeconomic stimuli that ensure electoral victory with no fear of losing aid support. © 2015 UNU-WIDER. Journal of International Development published by John Wiley & Sons, Ltd.

Microcredit, Labour, and Poverty Impacts in Urban Mexico

Abstract: Improved household accessibility to credit is a significant determinant of intra‐household allocation of labor resources with important implications for productivity, income, and poverty status. However, credit accessibility could also have wider impacts on poverty if it leads to new hires outside the household. This paper contributes to the existing literature on microcredit in two important ways. First, it investigates the routes through which microcredit reaches those in poverty outside the household. We test whether by lending to the vulnerable non‐poor microcredit can indirectly benefit poor laborers through increased employment. Second, we conduct the study in the context of urban poverty Mexico. This is relevant when considering that labor often represents the only source of livelihoods to the extreme urban poor. Our findings point to significant trickle‐down effects of microcredit that benefit poor laborers; however, these effects are only observed after loan‐supported enterprising households achieve earnings well above the poverty line.

Non‐clinical interventions for acute respiratory infections and diarrhoeal diseases among young children in developing countries

Abstract: OBJECTIVE: To assess the effectiveness of non-clinical interventions against acute respiratory infections and diarrhoeal diseases among young children in developing countries. METHODS: Experimental and observational impact studies of non-clinical interventions aimed at reducing the incidence of mortality and/or morbidity among children due to acute respiratory infections and/or diarrhoeal diseases were reviewed, following the Cochrane Handbook for Systematic Reviews of Interventions and the PRISMA guidelines. RESULTS: Enhancing resources and/or infrastructure, and promoting behavioural changes, are effective policy strategies to reduce child morbidity and mortality due to diarrhoeal disease and acute respiratory infections in developing countries. Interventions targeting diarrhoeal incidence generally demonstrated a reduction, ranging from 18.3% to 61%. The wide range of impact size reflects the diverse design features of policies and the heterogeneity of socio-economic environments in which these policies were implemented. Sanitation promotion at household level seems to have a greater protective effect for small children. CONCLUSION: Public investment in sanitation and hygiene, water supply and quality and the provision of medical equipment that detect symptoms of childhood diseases, in combination of training and education for medical workers, are effective policy strategies to reduce diarrhoeal diseases and acute respiratory infections. More research is needed in the countries that are most affected by childhood diseases. There is a need for disaggregation of analysis by age cohorts, as impact effectiveness of policies depends on children's age.