Department of Macroeconomics (Director: Beatriz Muriel)

Department of Social Policy (Director: Oscar Molina)

Department of Development (Director: Lykke Andersen)

Economic Modeling and Simulation Area (Director: Martin Vargas) Department of Management (Director: Pablo Von Vacano)
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Project Summaries:

 

Title: Regional Integration and Poverty

Purpose: The objective of the study is to investigate how Regional Integration (RI) has affected poverty in Bolivia. The project demonstrates how RI processes has diverted trade away from traditional US and EU markets towards partners in MERCOSUR and the Andean Community. Econometric analyses investigate how these changes in trade patterns have affected salaries and employment and thus poverty.

Project leader:
Osvaldo Nina

Other participants:
Lykke Andersen, Oscar Molina, Paloma Aguilar

Financing:
Overseas Development Institute

Output: Final report in English. 

Title: The Effectiveness of Foreign Aid in Bolivia

Purpose:
The project investigates the effectiveness of foreign aid in Bolivia. When comparing accumulated aid in each sector during the period 1998-2002 with the progress in each sector during the same period, it becomes clear that the four sectors receiving by far the most aid (Institutional strengthening, Rural Development, Roads, and Budget support) have shown disappointingly little progress. When the impact of aid is analyzed in a Computable General Equilibrium model, it becomes clear that aid tends to have a positive effect on growth, but only in the short run, and it tends to have an adverse effect on the income distribution.

Project leader:
Lykke Andersen

Other participants:
José Luis Evia

Financing/collaboration:
DFID, Spanish Embassy, Fundación Milenio

Output: Final report in English, Final report in Spanish.  

Title: The Dynamic Impacts of Aid on Recipient Behavior

Purpose: 
This research project proposes to do a micro-level analysis of the dynamic impacts of remittances in order to understand how households change their behaviour in response to the receipt of significant amounts of unconditional aid. Do they tend to use the funds productively to increase long term income generation capacity, or do they typically reduce their own efforts in the expectation of receiving more aid? For this purpose we will test how remittances affect future social mobility, school attendance, labor supply, consumption patterns, and investment propensities. 
        The data that will be used for the project consists of the two Living Standard Measurement Surveys conducted in Nicaragua in 1998 and 2001. The huge advantage of this data is that it follows the same persons over time. This kind of longitudinal data is very rare in developing countries, but extremely useful since it allows us to test causality, rather than just discovering correlations. Nicaragua also provides an excellent case study of the impact of aid, as the country receives substantial amounts of remittances (around 10% of GDP) as well as substantial amounts of official development assistance (also around 10% of GDP). 

Project leader:
Lykke Andersen

Other participants:
Oscar Molina.

Financing/collaboration:
Global Development Network. This project won the 2004 Global Development Award for Outstanding Research on Development.

Title: Labor Market Mobility in Bolivia

Purpose: The objective of this project is to estimate a structural model of on-the-job search behavior for public and private sector employees in Bolivia. The hypothesis is that employees find public sector jobs so attractive that the private sector cannot compete for and retain skilled labor. 

Project leader:
Lykke Andersen

Other participants:
Bent Jesper Christensen, University of Aarhus.

Financing:
University of Aarhus

Output: Working Paper in English, Working Paper in Spanish
 

Title: Is Education Spending in Bolivia Equitative?

Purpose: The equity in the allocation of resources in Latin America is an issue that has not yet been analyzed thoroughly. This work intends to analyze the theme of equity through the following three dimensions: horizontal equity, vertical equity, and equality of opportunities at municipal level. The main objective of the work is to generate criterions for resource allocation, which would allow a reduction in the inequities in initial, primary, and secondary education in Bolivia. To be able to reach our objectives, we intend first to make a rigorous statistical analysis of the indicators of equity. Subsequently, we plan to estimate various cross section econometric models that explain the resource allocation mechanisms and the academic performance of students.

Project leaders:
Osvaldo Nina, Oscar Molina

Other participants:
Paloma Aguilar, Paola Barrientos.

Financing:
Programa de Promoción de la Reforma Educativa en América Latina y el Caribe (PREAL).

Output: Working Paper in Spanish
 

Title: Gender Differences in Education: A Municipal Analysis

Purpose: This study identifies the municipalities where girls receive significantly less education than boys either because of problems with access or because of problems with permanence (higher drop-out rates among girls). The study then proceeds to analyze statistically the causes of these differences both at the municipal level and at the individual level.

Project leader:
Lykke Andersen

Other participants:
Oscar Molina, Paloma Aguilar, Paola Barrientos.

Financing:
Ministry of Education, The World Bank.

Title: Projection Scenarios of MDG's indicators and financial requests:  The Rate of Maternal Mortality
Purpose: The objective of the project is to determine the interventions less costly and more efficient to reach the MDG of reduce the rate of maternal mortality in 3/4 at year 2015 utilizing methods of the
system dynamics.


Investigador principal:
Martin Vargas

Otros participantes: 
Gustavo Canavire

Financiamiento:
Organización Panamericana de la Salud (OPS)

 

 

 

 


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