Does Heterogeneity Help in Overcoming the Public Goods Dilemma in a Sequential Contribution Environment?

This paper compares behavior of heterogeneous groups with homogeneous groups in public goods production. In heterogeneous groups members differ in their opportunity costs of contribution, while in homogeneous groups, members have the same opportunity costs. Members of three-player groups sequentially make all-or-nothing contributions towards the production of a public good where contribution decisions, payoffs, and opportunity costs of preceding players in the group are known to each group member. We find that heterogeneous groups perform better than homogeneous groups controlling for average opportunity costs at the group level. Our results also indicate that subjects develop an endogenous contribution norm to sustain public goods production where subjects in the first positions, and subjects with relatively low opportunity costs contribute most often.     

Understanding the Intergenerational Transmission of Human Capital: Evidence from a Quasi‐natural Experiment in China

This paper exploits the closure of senior secondary schools in urban China from 1966 to 1971 in order to identify the causal intergenerational transmission effects of education. The paper uses the instrumental variable approach to examine the intergenerational causality of educational transmission at the senior secondary schooling level in urban China. The exogenous variation in parental senior secondary educational attainment both over time and across regions allows us account for selection bias and thus identify the causal intergenerational transmission effect in education. We further show that our conclusion is robust to alternative identification strategies and data sets.     

The Welfare Economic Theory of Green National Accounts

This paper takes a critical look at the literature on green national accounts. The problem studied is to find a linear index of economic variables that responds to perturbations in the same direction as social well-being. The thesis of a large literature, that net national product (which is a flow) is that index in closed economies, is shown in some interpretations to be simply false and in others to suffer from deep estimation problems. It is argued that capital depreciation using shadow prices should certainly be included in national accounts, but that the right welfare index is a comprehensive measure of wealth, defined as the shadow value of an economy’s stock of all capital assets. It is shown that comprehensive wealth is usable as a criterion for policy evaluation as well as for determining sustainable economic development.     

Climate,weather and child health in Burkina Faso

It is now clear that anthropogenic climate change is having a negative impact on human health. In this paper, we provide the first comprehensive assessment of the impact of climatic stressors on child health in Burkina Faso. We undertake a rigorous empirical analysis of the impact of climate and weather shocks on mortality, stunting (height-for-age Z-score) and wasting (weight-for-age Z-score), using Demographic and Health Surveys, combined with high-resolution meteorological data, controlling for household and individual covariates. We find robust evidence that both lifetime and short-term exposure to high temperatures and droughts have a negative impact on child health, as do increased temperature anomalies during crop seasons, suggesting a link between climate and health through domestic food production. Income and household wealth, access to electricity, sanitation and a health facility for childbirth negate some adverse impacts of climate change. Combining our econometric estimates with updated CMIP6 scenarios, we compute policy-relevant projections of future child health. Our results show that future warming is projected to significantly increase child mortality, and share of underweight and stunted children, in all but the Paris Agreement scenario. Given the links between health, a key element of human capital, and economic growth, our findings and projections provide yet more evidence of the importance of a rapid reduction in global emissions combined with adaptation funding, if lower-income countries are to achieve poverty reduction and increasing prosperity.