Publication:
Why Governments Should Stop Non-Social Subsidies : Measuring Their Consequences for Rural Latin America

dc.contributor.author López, Ramón
dc.date.accessioned 2012-06-25T14:54:44Z
dc.date.available 2012-06-25T14:54:44Z
dc.date.issued 2005-05
dc.description.abstract The provision of public goods and the amelioration of market failure are the classical justifications for government intervention in the economy. In reality, (1) governments intervene in markets that are not affected by failure, and (2) a large share of the government resources is spent in private goods, not in public goods. In contrast to issue 1, issue 2 has received little attention in the literature, in spite of the potentially large efficiency and equity losses arising from misguided allocations of public expenditures. López empirically documents the size of (2) in the rural sector and investigates its consequences for rural development for 10 Latin American countries over the 1985-2000 period. The econometric evidence suggests that the structure of public expenditures is an important factor of economic development in the rural sector, much greater than that of the level of public expenditures and of other factors on which the development literature has traditionally focused. Expanding total public expenditure in rural areas while maintaining the existing public expenditure composition prevailing in certain countries does little to promote agricultural income and reduce rural poverty. Spending a significant share of government resources in (non-social) subsidies causes less agriculture income, induces an excessive reliance of agriculture on land expansion, and reduces the income of the rural poor. en
dc.identifier http://documents.worldbank.org/curated/en/2005/05/5796546/governments-stop-non-social-subsidies-measuring-consequences-rural-latin-america
dc.identifier.uri http://hdl.handle.net/10986/8917
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper; No. 3609
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.subject AGRICULTURE
dc.subject BENCHMARK
dc.subject CAPITAL GOODS
dc.subject CAPITAL MARKETS
dc.subject COMMODITIES
dc.subject CONCEPTUAL FRAMEWORK
dc.subject CONSTANT RETURNS TO SCALE
dc.subject CORRUPTION
dc.subject CROWDING
dc.subject CROWDING OUT
dc.subject DEBT
dc.subject DECISION MAKING
dc.subject DEFORESTATION
dc.subject DEVELOPED COUNTRIES
dc.subject ECONOMIC DEVELOPMENT
dc.subject ECONOMIC EFFECTS
dc.subject ECONOMIC EFFICIENCY
dc.subject ECONOMIC EXPANSION
dc.subject ECONOMIC GROWTH
dc.subject ECONOMIC PERFORMANCE
dc.subject ECONOMIC POWER
dc.subject ECONOMICS
dc.subject ECONOMICS LITERATURE
dc.subject ECONOMISTS
dc.subject EFFICIENT MARKETS
dc.subject EMPIRICAL ANALYSIS
dc.subject EMPIRICAL EVIDENCE
dc.subject EMPIRICAL STUDIES
dc.subject EMPLOYMENT
dc.subject ENVIRONMENTAL PROTECTION
dc.subject EVASION
dc.subject EXOGENOUS VARIABLES
dc.subject EXPECTED VALUE
dc.subject EXPORTS
dc.subject FINANCIAL RESOURCES
dc.subject GDP
dc.subject GDP PER CAPITA
dc.subject GOVERNMENT DEBT
dc.subject GOVERNMENT EXPENDITURES
dc.subject GOVERNMENT SUBSIDIES
dc.subject HEALTH CARE
dc.subject HUMAN CAPITAL
dc.subject IMPORTS
dc.subject INCOME
dc.subject INCOME DISTRIBUTION
dc.subject INCOME TAXES
dc.subject INPUT PRICES
dc.subject LABOR FORCE
dc.subject LIQUIDITY
dc.subject MARKET FAILURES
dc.subject MARKET IMPERFECTIONS
dc.subject MARKET PRICES
dc.subject MONEY
dc.subject NATURAL RESOURCES
dc.subject OIL
dc.subject PER CAPITA INCOME
dc.subject POLICY RESEARCH
dc.subject POLITICIANS
dc.subject POSITIVE EXTERNALITIES
dc.subject PRICE CHANGES
dc.subject PRIVATE GOODS
dc.subject PRIVATE SECTOR
dc.subject PRODUCERS
dc.subject PRODUCTION FUNCTION
dc.subject PRODUCTIVITY
dc.subject PRODUCTIVITY GROWTH
dc.subject PROPERTY TAXES
dc.subject PUBLIC DEBT
dc.subject PUBLIC EXPENDITURE
dc.subject PUBLIC EXPENDITURES
dc.subject PUBLIC GOOD
dc.subject PUBLIC GOOD/PRIVATE
dc.subject PUBLIC GOODS
dc.subject PUBLIC INFRASTRUCTURE
dc.subject PUBLIC POLICIES
dc.subject PUBLIC RESOURCES
dc.subject PUBLIC SECTOR
dc.subject PUBLIC/PRIVATE GOODS
dc.subject REAL WAGES
dc.subject ROADS
dc.subject RURAL INFRASTRUCTURE
dc.subject SANITATION
dc.subject SOCIAL SERVICES
dc.subject STRUCTURE OF GOVERNMENT
dc.subject SUPPLY
dc.subject TAX
dc.subject TAXATION
dc.subject TRADE POLICIES
dc.subject TRADEOFFS
dc.subject VALUE ADDED
dc.subject WEALTH
dc.title Why Governments Should Stop Non-Social Subsidies : Measuring Their Consequences for Rural Latin America en
dspace.entity.type Publication
okr.doctype Publications & Research :: Policy Research Working Paper
okr.doctype Publications & Research
okr.docurl http://documents.worldbank.org/curated/en/2005/05/5796546/governments-stop-non-social-subsidies-measuring-consequences-rural-latin-america
okr.globalpractice Macroeconomics and Fiscal Management
okr.identifier.doi 10.1596/1813-9450-3609
okr.identifier.externaldocumentum 000011823_20050512125044
okr.identifier.internaldocumentum 5796546
okr.identifier.report WPS3609
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/05/12/000011823_20050512125044/Rendered/PDF/wps3609.pdf en
okr.region.administrative Latin America & Caribbean
okr.region.geographical Latin America
okr.topic Economic Theory and Research
okr.topic Banks and Banking Reform
okr.topic Environmental Economics and Policies
okr.topic Health Economics and Finance
okr.topic Public Sector Economics and Finance
okr.topic Macroeconomics and Economic Growth
okr.unit Development Research Group (DECRG)
okr.volume 1 of 1
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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