C. Journal articles published externally
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These are journal articles by World Bank authors published externally.
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Publication
Cross-Region Transfer Multipliers in a Monetary Union: Evidence from Social Security and Stimulus Payments
(American Economic Association, 2021-05)US federal transfers to individuals are large, countercyclical, vary geographically, and are often credited with helping to stabilize regional economies. This paper estimates the short-run effects of these transfers using plausibly exogenous regional variation in temporary stimulus payments and permanent Social Security benefit increases. States that received larger transfers tended to grow faster contemporaneously, with a multiplier of around 1.5 for permanent transfers and 1/3 for temporary transfers. Results are broadly consistent with an open-economy New Keynesian model. At business cycle frequencies, cross-region transfer multipliers are not large, suggesting only modest gains in regional stabilization from US federal automatic stabilizers. -
Publication
Getting Practical with Causal Mechanisms: The Application of Process‐Tracing under Real‐World Evaluation Constraints
(Wiley, 2020-10-06)Over the past decade, the field of development evaluation has seen a renewed interest in methodological approaches that can answer compelling causal questions about what works, for whom, and why. Development evaluators have notably started to experiment with Bayesian Process Tracing to unpack, test, and enhance their comprehension of causal mechanisms triggered by development interventions. This chapter conveys one such experience of applying Bayesian Process Tracing to the study of citizen engagement interventions within a conditional cash transfer program under real‐world evaluation conditions. The chapter builds on this experience to discuss the benefits, challenges, and potential for the applicability of this approach under real‐world evaluation conditions of time, money, and political constraints. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions. https://authorservices.wiley.com/author-resources/Journal-Authors/licensing/self-archiving.html -
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Economic Growth, Convergence, and World Food Demand and Supply
(Elsevier, 2020-08)In recent years, developing countries have been growing much more rapidly than the industrial countries. This growth convergence has potentially very important implications for world food demand and for world agriculture because of the increase in demand for agricultural resources as diets shift away from starchy staples and towards animal-based products and fruits and vegetables. Using a resource-based measure of food production and consumption that accounts for the much higher production costs associated with animal-based foods, this article finds per capita demand growth to be a more important driver of food demand than population growth between now and 2050. Using the middle-ground Shared Socioeconomic Pathway scenario to 2050 from the International Institute for Applied Systems Analysis, which assumes continued income convergence, the article finds that the increase in food demand (102 percent) would be about a third greater than under a hypothetical scenario of all countries growing at the same rate (78 percent). As convergence increases the growth of food supply by less than demand, it appears to be a driver of upward pressure on world food prices. -
Publication
The Political Economy of Multidimensional Child Poverty Measurement: A Comparative Analysis of Mexico and Uganda
(Taylor and Francis, 2020-03-11)As part of the 2030 Agenda, much effort has been exerted in comparing multidimensional child poverty measures both technically and conceptually. Yet, few countries have adopted and used any of these measures in policymaking. This paper explores the reasons for this absence from a political economy perspective. It develops an innovative political economy framework for poverty measurement and a hypothesis whereby a country will only produce and use reliable and sustainable multidimensional child poverty (MDCP) measures if and only if three conditions coalesce: consensus, capacity and polity. We explore this framework with two relevant case studies, Mexico and Uganda. Both countries satisfy the capacity condition required to measure MDCP but only Mexico satisfies the other two conditions. Our proposed political economy framework is normatively relevant because it identifies the conditions that need to change across multiple contexts before the effective adoption and use of an MDCP measure becomes more likely. -
Publication
The Devil is in the Detail: Growth, Inequality and Poverty Reduction in Africa in the Last Two Decades
(Oxford University Press, 2019-08)The present paper, starting from evidence of low growth-to-poverty elasticity characterizing Africa, purports to identify the distributional changes that limited the pro-poor impact of the last two decades’ growth. Distributional changes that went undetected by standard inequality measures were not showing a clear pattern of inequality on the continent. By applying a new decomposition technique based on a non-parametric method—the ‘relative distribution’—we found a clear distributional pattern affecting almost all analysed countries. Nineteen out twenty four countries experienced a significant increase in polarization, particularly in the lower tail of the distribution, and this distributional change lowered the pro-poor impact of growth substantially. Without this unfavorable redistribution, poverty could have decreased in these countries by an additional five percentage points. -
Publication
Optimal Targeting Under Budget Constraints in a Humanitarian Context
(Elsevier, 2018-01-05)The paper uses Receiver Operating Characteristic (ROC) curves and related indexes to determine the optimal targeting strategy of a food voucher program for refugees. Estimations focus on the 2014 food voucher administered by the World Food Program to Syrian refugees in Jordan using data collected by the United Nations High Commissioner for Refugees. The paper shows how to use ROC curves to optimize targeting using coverage rates, budgets, or poverty lines as guiding principles to increase the overall efficiency of a program. As humanitarian organizations operate under increasing budget constraints and increasing demands for efficiency, the proposed approach addresses both concerns. -
Publication
The Rise of the Middle Class and Economic Growth in ASEAN
(Elsevier, 2018-01-05)We present instrumental variables estimates of the relationship between the share of income accruing to the middle class and GDP per capita. The increase in GDP per capita that ASEAN economies experienced during 1970–2010 significantly contributed to a higher share of income accruing to the middle class in these countries. Econometric model estimates show that the impact of a rise of the middle class on economic growth depends on initial levels of GDP per capita. In the majority of ASEAN countries, a rise of the middle class that is unrelated to GDP per capita growth would have had a significant negative effect on economic growth for levels of ASEAN economies' GDP per capita in 1970. In contrast, for recent values of GDP per capita a rise of the middle class would positively contribute to growth of GDP per capita in ASEAN. We show that investment is an important channel through which the income share of the middle class affects economic growth. -
Publication
The Health Gains, Financial Risk Protection Benefits, and Distributional Impact of Increased Tobacco Taxes in Armenia
(Taylor and Francis, 2018-01)The majority of Armenian adult males smoke, yet tobacco taxes in Armenia are among the lowest in Europe and Central Asia. Increasing taxes on tobacco is one of the most cost-effective public health interventions, but many opponents often cite regressivity as an argument against tobacco taxation. We use a mixed-methods approach to study the potential regressivity of tobacco taxation and the extent to which the regressivity argument hindered increases in tobacco taxation in Armenia. First, we pursued an extended cost-effectiveness analysis (ECEA) to assess the health, financial, and distributional consequences (by consumption quintile) of increases in the excise tax on cigarettes in Armenia. We simulated a hypothetical price hike leading to a tax rate of about 75% of the retail price of cigarettes, which would be fully passed on to consumers. Second, we conducted a series of stakeholder interviews to examine the importance of the regressivity argument and identify the factors that allowed tobacco tax increases to be adopted as public policy in Armenia. We show that increased excise taxes would bring large health and financial benefits to Armenian households. Half of tobacco-related premature deaths and 27% of associated poverty cases averted would be concentrated among the bottom 40% of the population. Though regressivity was raised as a concern at the initial stages of the policy adoption process, our qualitative stakeholder analysis indicates that the recent accession to the Eurasian Economic Union and the fiscal constraints faced by the government created a window of opportunity for tobacco taxation to be placed on the policy agenda and adopted as government policy, and the ECEA findings were an important input into the process. -
Publication
The Poverty Implications of Alternative Tax Reforms: Results from a Numerical Application to Pakistan
(Elsevier, 2017-10)This paper presents results from four simulations of the impact of potential tax reforms in Pakistan on poverty, shared prosperity, and inequality. The simulations are carried out in the context of a dynamic computational general equilibrium (CGE) model that incorporates endogenous tax evasion. The simulations link the CGE model to household survey data that is incorporated in a micro simulation model. The combined models suggest that equal yield increases in sales and corporate tax rates differ mildly in their impacts on consumption and poverty. Endogenously modeled tax evasion plays an important role in the results. -
Publication
No Condition Is Permanent: Middle Class in Nigeria in the Last Decade
(Taylor and Francis, 2017-09-21)The economic debate on the existence and definition of the middle class has become particularly lively in many developing countries. Building on a recently developed framework called the Vulnerability Approach to Middle Class (VAMC) to define the middle class, this paper tries to estimate the size of the Nigerian middle class in a rigorous quantitative manner and to gauge its evolution over time. Using the VAMC method, the middle class group can be defined residually from the vulnerability analysis as those for which the probability of falling into poverty is below a certain threshold. The results show that there has been considerable improvement in the size of the Nigerian middle class from 13 per cent in 2003/4 to 19 per cent in 2012/13. However, the rate has been slower than expected given the high growth rates experienced in the country over the same period. The results also paint a heterogeneous picture of the middle class in Nigeria with large spatial differences. The southern regions have a higher share and experienced more growth of the middle class compared with the northern regions.