Difference‐in‐differences when the treatment status is observed in only one period

This paper considers the difference‐in‐differences (DID) method when the data come from repeated cross‐sections and the treatment status is observed either before or after the implementation of a program. We propose a new method that point‐identifies the average treatment effect on the treated (ATT) via a DID method when there is at least one proxy variable for the latent treatment. Key assumptions are the stationarity of the propensity score conditional on the proxy and an exclusion restriction that the proxy must satisfy with respect to the change in average outcomes over time conditional on the true treatment status. We propose a generalized method of moments estimator for the ATT and we show that the associated overidentification test can be used to test our key assumptions. The method is used to evaluate JUNTOS, a Peruvian conditional cash transfer program. We find that the program significantly increased the demand for health inputs among children and women of reproductive age.     

The curious case of Panama

A small country in Central America offers some interesting ideas on how the insurance industry can handle the COVID‐19 pandemic and crisis.     

A profile of European accounting research: evidence from leading research journals

This paper attempts both to advance understanding about the research profile of accounting in Europe and to evaluate the role of The European Accounting Review in the dissemination of Europe-based accounting research. Empirical evidence supporting this investigation was gathered from all the papers published in thirteen top accounting journals during the period 1992 to 1997. Our results show that (i) a vast majority of European contributions to well-regarded journals are authored by scholars affiliated to British higher education organizations. Therefore, the overwhelming dominance of British accounting academics over Europe-based accounting research posits considerable doubts on the extent to which it is correct to form the notion of European accounting research. Our results suggest that such a notion is strongly shaped by one constituency of the European setting, that is, by researchers affiliated to British higher education institutions. (ii) The European Accounting Review has played a significant role in the diffusion of Europe-based accounting research. The journal constitutes the sole venue providing international visibility to scholars of eleven continental European countries. Moreover, The European Accounting Review has published a significant proportion of contributions from scholars of the other fifteen European countries. (iii) There exists limited mobility of non-English written accounting research across European countries. Lastly, the paper posits some suggestions for further work in this area.     

An Econometric Model of the Colombian Beef Sector: 1950–1970

Recent theoretical and empirical studies of beef cattle producers by Barros, Jarvis, Nores, Reutlinger, and Yver have focused on producers' supply response assuming cattle represent consumption goods and capital goods. To differentiate producer price response for cattle sold as consumption goods and cattle retained as capital goods requires data on herd and slaughter age-sex structure. This has limited the range of econometric work which could be carried out in many developing countries. This study utilizes a time series of the Colombian cattle herd which was recently constructed by Rivas and Valdes and which has the necessary age-sex and slaughter data to develop a complete system of structural equations representing the simultaneous determination of demand and supply for Colombian cattle over the 1950–1970 period.     

The recent worldwide economic crisis and the welfare of children: The case of Cuba

As a consequence of the deeply interdependent nature of today's world, Cuba has been affected by the world recession and by the critical roles of international trade and finance. However, the Cuban government has maintained a constant commitment to the protection of the poor and the children through increasing allocations of resources to education and health and through the promotion of increased levels of popular participation. This paper describes the improvements in the areas of nutrition, health and education and the persistent problems in the area of housing. It shows that the improvements observed have reached the majority of the population, eliminating great disparities.     

NYSE execution quality subsequent to migration to hybrid

In October 2006, the NYSE began rolling-out phase three of a four-phase plan initiate its new Hybrid trading mechanism. The results show that this new trading platform introduced a much larger proportion of electronic transactions relative to floor auction transactions. This migration to electronic transactions is further evidenced by a mirror shift in price discovery from floor trades to trades marked for automatic electronic execution. In addition, the move to Hybrid trading introduced a significant decrease in inventory control costs, as well as a noticeable increase in trade persistence. Finally, the new trading platform has increased the speed with which orders are met, and has also decreased the proportion of executed shares which receive price improvement.

Inequality and criminality revisited: further evidence from Brazil

The objective of this study is to shed light on the determinants of criminality rates in Brazil. A panel data model was estimated using Brazilian states’ data. Our main result suggests that income inequality plays an important role in the determination of the crime rate. Furthermore, there are evidence suggesting that both unemployment and urbanization rates are positively related to crime. Based on a GMM approach we find the existence of an “inertial effect” on criminality. Besides that, the GMM results show that public security spending is effective in reducing criminality rates. Contrary to the common wisdom, we could not find evidence that poverty increases violent crimes. Finally, we have evidence that income inequality Granger causes crime, but not the reverse.     

Safety of motorized two-wheeler riders in the formal and informal transport sector

Abstract

Road fatalities are largely preventable problem with large socioeconomic impact. Due to the rapidly increasing population, transport systems and road infrastructure have not met the demand. The use of motorized two-wheeler vehicles has increased, as informal transport. However, evidence on their safety is scarce. The aim of this article is to examine the safety and social equity issues in MTW in the informal transport sector. Factors can be used to explain traffic collisions in MTW in the formal/informal transport sectors: design, rider behavior, road design, enforcement, and regulation of the informal transport sector. Evidence suggests that MTWs could be a common related to pedestrian fatalities. Informal transport drivers are typically poor, uneducated, young men who due to lack of other employment options move into the informal sector. Their vehicles are old, unmaintained and have a lack of protective equipment for themselves and their passengers. Young, male drivers speed, take risks and not use protective equipment. Users of informal transport live in the poorer peripheries of cities, which, have limited, inefficient or unaffordable public transport. The provision of transport has therefore become an often unrecognized, important social equity issue and studies are urgently needed on MTW in the informal transport sector.     

Dissecting Foreign Bank Lending Behavior During the 2008–2009 Crisis

This paper analyzes the lending behavior of foreign‐owned banks during the recent global crisis. Using bank‐level panel data for 51 countries, the paper explores the role of affiliate and parent financial characteristics, host location, as well as the impact of parent geographic origin and reach on foreign banks’ credit growth. Overall, the analysis finds robust evidence that foreign banks curtailed the growth of credit relative to other banks, independent of the host region in which they operate. Banks from the United States reduced loan growth less than other parent banks. Neither the global nor regional reach of parent banks influenced the lending growth of foreign affiliates. Parent capitalization and not parent funding explained the behavior of foreign bank credit growth during the global crisis. However, funding did affect the lending behavior of domestic and foreign banks in host countries, with those relying more heavily on deposits suffering a smaller decline in bank lending. Although not the focus of the paper, we also find that government‐owned banks played a countercyclical role in all regions.     

Why Do Some Bt-Cotton Farmers in China Continue to Use High Levels of Pesticides?

China was the first developing country to introduce Bt cotton on a large scale. This paper provides an indepth economic analysis of Bt cotton production by small-scale farmers in China. Data were collected in 2002 in Linqing County, in Shandong Province and comprised a season-long cotton production monitoring with 150 farmers and complementary household interviews. For quality assessment, the Bt toxin concentration of the various Bt varieties used by the farmers was determined for each plot. All farmers were growing insect resistant Bt cotton varieties. Yet, they sprayed high amounts of chemical insecticides, out of which 40% were extremely or highly hazardous. The paper reviews methodological issues inherent to impact assessment of crop biotechnology and identifies market and institutional failure as possible reasons for continued high pesticide use. Using the damage function methodology the coefficients for both damage control inputs, i.e., Bt varieties (measured as toxin concentration), and insecticide quantity were not significantly different from zero. Results show that absence of enabling institutions and lack of farmer knowledge can considerably limit the benefits of Bt cotton for small-scale farmers. The paper points out the importance to include the institutional conditions in the evaluation of agricultural biotechnology in developing countries.