models for referendum data the structure of discrete choice models for contingent valuation abstract in 1979 bishop and heberlein introduced an appealing variant of the contingent valuation method which required only yes or no responses hanemann developed a utility theoretic interpretation of the yes no responses which has helped popularize the approach recently cameron has offered another interpretation also utility theoretic which she argues is more general than the hanemann random utility model this paper compares the deterministic models suggested by hanemann and cameron showing them to be dual to each other it shows that correct specification of either function must exclude endogenous variables such as quantity demanded it also demonstrates that using utility theoretic models allows one to compare travel cost models and contigent valuation models on the basis of their implied behavior not on the unobservable surplus or variation measure

long run trends in energy related external costs this paper considers how energy related external costs change through time it focuses on one of the key periods in the history of energy after a period of declining coal prices and soaring consumption which fuelled the second industrial revolution the nineteenth century british economy was externalising the social costs of energy production and consumption on a massive scale rising from 25 in the 1820s an estimated 60 70 of the average social costs of coal were externalised in the 1880s imposing damages close to 20 of gdp the eventual decline in air pollution concentration around 1900 occurred fifty years later than was broadly socially optimal this experience highlights the evolution of the demand for and supply of environmental quality in the context of economic growth and the nature of related market and government failures implying the necessity for adaptation rather than encouraging mitigation this experience may offer lessons for climate analysis and policy making

women s work and economic development using a cross country dataset and microdata from india and thailand we examine how women s work status changes with economic development several clear patterns emerge women s labor force participation first declines and then rises with development women move from work in family enterprises to work as paid employees fertility declines and gender gaps in education narrow women s education levels and those of their spouses appear to be important determinants of women s labor market activities broad welfare indicators such as mortality rates and education levels indicate that women s well being improves on average with development both in absolute terms and relative to men

combining contingent valuation and travel cost data for the valuation of non market goods the travel cost method tcm has long been used to infer the economic value of nonmarket resources and public goods more recently contingent valuation cvm survey methods have gained popularity for eliciting these values here cvm survey responses are combined with tcm data on actual market behavior to estimate jointly both the parameters of the underlying utility function and its corresponding ordinary demand function this is a prototypical empirical example of a new modeling strategy variants of which should prove useful in many applications especially where reliance on a single valuation method is undesirable

returns to rural electrification evidence from bhutan abstract rural electrification re is a core component of the sustainable development goals and a major focal point of the global development community despite this focus more than one billion people worldwide lack access to electricity and electrification rates need to more than quadruple to meet international goals we believe that lack of progress is partly driven by a know do gap a misalignment between academic research and the information needs of policy makers most studies measuring the impacts of electrification focus on precise estimation of a few outcomes specifically health education and productivity impacts other important impacts e g environmental have remained largely unstudied as a consequence quantifying the full set of costs and benefits of expanding electricity access is difficult and rarely done when cost benefit analyses are done they are often incomplete and conclusions are highly susceptible to unavailable or uncertain parameters we illustrate these arguments in the case of bhutan where re rates have expanded rapidly in the past few decades we show that re via grid extension had positive impacts related to fuelwood consumption education and employment but we do not find an effect on health we then use these impact estimates to conduct cost benefit analyses for the cost benefit parameters not available from our impact evaluation we transfer reasonable estimates from related contexts to acknowledge the uncertainty induced by this process we conduct monte carlo analyses and confirm that while the private npv calculations are robust to alternative parameter values the social returns are sensitive to estimates of the social cost of carbon and costs of grid operation and maintenance based on this exercise we highlight research gaps that persist and that preclude 1 careful cost benefit analysis of re more generally and 2 financial investment in the sector

the impact of bt cotton on poor households in rural india the impact of genetically modified gm crops on the poor in developing countries is still the subject of controversy while previous studies have examined direct productivity effects of bacillus thuringiensis bt cotton and other gm crops little is known about wider socioeconomic outcomes we use a microeconomic modelling approach and comprehensive survey data from india to analyse welfare and distribution effects in a typical village economy bt cotton adoption increases returns to labour especially for hired female workers likewise aggregate household incomes rise including for poor and vulnerable farmers hence bt cotton contributes to poverty reduction and rural development

is meta analysis a noah s ark for non market valuation this paper describes meta analytical methods as they have been applied to non market valuation research these studies have been used to review and synthesize literature and more recently in benefit transfer this second use imposes a higher standard on the consistency in economic concepts being summarized and in the resources included in a meta analysis to meet this need the paper proposes and illustrates a structural framework using a generalized method of moments estimator to estimate the parameters of a preference function with the benefits estimates usually encountered in meta analytic summaries

real exchange rates preferences and incomplete markets evidence 1961 2001 many international macroeconomic models link the real exchange rate to a ratio of marginal utilities we examine this link empirically allowing the marginal utility of consumption to depend on government expenditure real money balances or external habit we also consider two environments with incomplete asset markets one with exogenously missing markets but an endogenous discount rate that anchors the distribution of wealth and one with endogenous market segmentation although none of these satisfies theoretical and over identifying restrictions for every country utility with external habit persistence provides the best match with real exchange rates for oecd countries between 1961 and 2001 jel classification f41 taux de change reels preferences et marches incomplets resultats 1961 2001 plusieurs modeles macroeconomiques internationaux lient le taux de change reel a un ratio des utilites marginales on examine ce lien empiriquement en permettant a l utilite marginale de la consommation de dependre des depenses du gouvernement des encaisses monetaires reelles ou des habitudes donnees on considere aussi deux environnements avec des marches incomplets pour les actifs l un avec des marches exogenes manquants mais un taux d escompte endogene qui ancre bien la repartition des revenus et l autre avec des marches segmentes endogenes bien que ni l un ni l autre ne satisfasse les imperatifs theoriques et les restrictions sur identifiees pour chaque pays l utilite avec les persistances d habitudes externes engendre l ajustement le meilleur avec les taux de change reels des pays de l ocde entre 1961 et 2001

life in a mexican village a sam perspective this article employs a social accounting matrix sam to analyse the economic structure of a migrant sending rural economy a village sam is constructed using 1982 household data from a major migrant sending village in central mexico the village matrix multiplier and its decompositions are derived from the sam and are utilised in policy experiments on the production value added income and investment flows of the village the results highlight the central role of both internal and international migration in the village economy as well as the importance of targeting directly anti poverty policies toward the landless

disentangling the pure time effect from site and preference heterogeneity effects in benefit transfer an empirical investigation of transferability two identical open ended contingent valuation surveys assessing willingness to pay for better protection against flooding were administered in 2005 and 2010 at the same site the 2010 survey was administered to the same respondents as those interviewed in 2005 as well as to new participants this experimental design allows us to separate the pure temporal dimension from the spatial and social dimensions of transferability thereby permitting an investigation of the temporal reliability associated with a transfer of value estimates over a 5 year time horizon having isolated the pure effect of time the design further allows assessing the social dimension of transferability

monetary valuation of the social cost of co2 emissions a critical survey an expanding branch of research has estimated the potential costs of climate change which are often expressed as the social cost of carbon scc or the costs of an additional ton of co2 emissions estimates of the scc can be used by policy makers to evaluate climate change policies and greenhouse gas emission reduction projects by means of cost benefit analyses cbas such analyses are complicated by the wide range of scc values that have been reported in the literature and the large uncertainties involved in estimating the potential economic impacts and related costs of climate change this study presents a critical review of the reported scc estimates by examining some neglected consequences of climate change uncertain and extreme scenarios of climate change the discounting of future climate change effects the treatment of individual risk aversion and assumptions about social welfare in view of the many uncertainties and omissions in conventional cost benefit analyses of climate impacts and the scc alternative approaches to decision making should be considered for climate policy

estimating the private benefits of vaccination against cholera in beira mozambique a travel cost approach abstract this paper reports the results of the first study that estimates households private demand for cholera vaccines using the travel cost method we take advantage of an unusual natural experiment in january 2004 more than 41 000 residents from various locations in beira mozambique received two doses of oral cholera vaccine free of charge during the first vaccination trial to test its effectiveness in an endemic cholera zone of africa about 30 000 people participated from outside the target zone resulting in long queues and an average waiting time of about 85 min per dose we estimated travel cost models of the revealed demand for cholera vaccines among households informed of the trial using information collected in in person interviews conducted during the summer of 2005 to explore households participation in the trial we used standard and zero inflated household count models for all household members and dichotomous choice models for the head of the household our analysis shows that the quantity of vaccines obtained by households and the likelihood of participation decreased as travel cost in time and transport expenses rose our best estimates of per capita willingness to pay for the two required doses of cholera vaccine are about 0 85 usd these estimates are sensitive to the assumed value of time spent acquiring vaccines

a new paradigm for valuing non market goods using referendum data maximum likelihood estimation by censored logistic regression abstract this paper challenges the w m hanemann amer j agr econom 66 332 341 1984 and c sellar j p chavas and j r stoll j environ econom management 13 382 390 1986 utilizations of logit models to estimate the value of non market resources from referendum survey data these data are more informative than conventional choice data the random utility interpretation of logit models is therefore too restrictive bypassing the utility function entirely it will be shown that parameters and standard errors for utility theoretic inverse hicksian demand functions can be extracted directly and much more simply estimated demand functions need not be limited to those corresponding to the linear in parameters utility difference specifications which can be handled by packaged logit programs

vsl reconsidered what do labor supply estimates reveal about risk preferences abstract we propose and illustrate a theoretically consistent framework for linking estimates of the value of a statistical life vsl to individual preferences our example suggests a method for using estimates of the labor supply elasticity to impute a vsl estimate

signals or noise explaining the variation in recreation benefit estimates this paper uses meta analysis to summarize the benefit estimates derived from travel cost recreation demand models after reviewing approximately 200 published and unpublished studies prepared from 1970 to 1986 77 were found to report either consumer surplus estimates or sufficient information to derive them using these estimates of the consumer surplus per unit of use from each study it was possible to evaluate the influence of variables describing the site characteristics the activities undertaken at each site the behavioral assumptions and the specification decisions the findings provide clear support for using econometric methods to summarize results from diverse empirical studies they highlight the important research issues in model development and offer a consistency check to the procedures used in benefit transfer analyses for policy evaluations

the regional economic impacts of biofuels a review of multisectoral modelling techniques and evaluation of applications allan g j the regional economic impacts of biofuels a review of multisectoral modelling techniques and evaluation of applications regional studies the regional economic impact of biofuel production depends upon a number of interrelated factors the specific biofuels feedstock and production technology employed the sector s embeddedness in the rest of the economy through its demand for local resources and the extent to which new activity is created these issues can be analysed using multisectoral economic models some studies use input output io and social accounting matrix sam modelling frameworks whilst a nascent computable general equilibrium cge literature has begun to examine the regional impact of biofuel development this paper reviews compares and evaluates these approaches for modelling the regional economic impacts of biofuels

do the near elderly value mortality risks differently wage hedonic models are estimated with the health and retirement study to measure the risk wage tradeoffs value of statistical lives for older workers the analysis explicitly allows for multiple employment states including retirement using a multinomial selection model the results suggest that the oldest and most risk averse workers require significantly higher not lower compensation to accept increases in job related fatality risks

combining micro and macro data in microeconometric models or panel samples to improve accuracy of estimation in this paper we show how to do this efficiently we show that the gains from use of marginal information can be substantial we also discuss how to test the compatibility of sample and marginal information

coping with poor public capital abstract despite recent successes in stabilization and structural reforms in many developing countries the private investment response to date has been mixed even among the strongest reformers this disappointing result can be partly explained by the continued poor provision of public capital and services we test this hypothesis using unique firm level data on investment and provision of public infrastructure services the results suggest that poor complementary public capital significantly reduces private investment however firms can substitute for deficient public services by investing in complementary capital themselves but this comes at a cost less productive capital will be installed

combining revealed and stated preference data to estimate the nonmarket value of ecological services an assessment of the state of the science this paper reviews the marketing transportation and environmental economics literature on the joint estimation of revealed preference rp and stated preference sp data the rp and sp approaches are first described with a focus on the strengths and weaknesses of each recognizing these strengths and weaknesses the potential gains from combining data are described a classification system for combined data that emphasizes the type of data combination and the econometric models used is proposed a methodological review of the literature is pursued based on this classification system examples from the environmental economics literature are highlighted a discussion of the advantages and disadvantages of each type of jointly estimated model is then presented suggestions for future research in particular opportunities for application of these models to environmental quality valuation are presented

economics for sustainable rural systems abstract critics often reproach the discipline of economics for supporting developments that result in environmental and social degradation this article identifies where such censure is valid but proceeds to argue that the rationale underlying economic techniques is at fault rather than the techniques themselves within the rural context we suggest that economics can make a valuable contribution to the design and achievement of sustainable ways of living valid criticism of economics focuses on its assumptions about value since this has led to emphasis of favourable effects of markets and laissez faire policies exposing rural areas to more rigorously competitive market conditions encourage their transformation by increasing mechanisation industrialisation and a less sustainable use of resources new approaches and policies are required if different outcomes are to be achieved an initial step is to identify desirable outcomes a matter of social choice however society makes multiple demands on rural resources and such issues cannot be adequately captured within a neo classical welfare model an alternative hierarchical framework in the tradition of systems thinking capable of analysing the complex relations associated with rural resource use provides appropriate emphasis to the economic links between goals at different levels within the system and appears to have some heuristic value an empirical counterpart of the hierarchical framework input output analysis generates information to support social choices and can also contribute to the understanding of economic systems and their interaction with the wider social cultural ethical and environmental universe the article concludes with some revised economic policy prescriptions to promote rural sustainability

on the validity of econometric techniques with weak instruments inference on returns to education using compulsory school attendance laws we evaluate angrist and krueger 1991 and bound jaeger and baker 1995 by constructing reliable confidence regions around the 2sls and liml estimators for returns to schooling regardless of the quality of the instruments the results indicate that the returns to schooling were between 8 and 25 percent in 1970 and between 4 and 14 percent in 1980 although the estimates are less accurate than previously thought most specifications by angrist and krueger 1991 are informative for returns to schooling in particular concern about the reliability of the model with 178 instruments is unfounded despite the low first stage f statistic finally we briefly discuss bias adjustment of estimators and pretesting procedures as solutions to the weak instrument problem

consumption and real exchange rates in dynamic economies with non traded goods abstract we examine the possibility that non traded goods may account for several striking features of international macroeconomic data large persistent deviations from purchasing power parity small correlations of aggregate consumption fluctuations across countries and substantial international real interest rate differentials a dynamic exchange economy is used to show that non traded goods in principle can account for each of these phenomena in the theory there is a close relation between fluctuations in consumption ratios and those in bilateral real exchange rates but we find little evidence for this relation in time series data for eight oecd countries

village wide effects of agricultural biotechnology the case of bt cotton in india previous studies on impacts of agricultural biotechnology have mostly focused on direct effects we suggest an economy wide framework to analyze income distribution aspects more carefully for a village in india a micro social accounting matrix sam is developed and used to simulate the effects of bt cotton adoption overall the technology is employment generating although family labor in cotton production is saved while substantial benefits are observed for small and large farmers total household income effects are bigger for larger farms this is mostly due to differential opportunity incomes of saved family labor some research and policy implications are discussed

testing for linear and nonlinear granger causality in the real exchange rate consumption relation international real business cycle models predict a relationship between real exchange rates and consumption this prediction is not supported by the empirical literature in a new approach we apply nonlinear granger causality tests to data for 14 oecd countries

government spending growth and poverty in rural india using state level data for 1970 93 a simultaneous equation model was developed to estimate the direct and indirect effects of different types of government expenditure on ruralpoverty and productivity growth in india the results show that in order to reduce rural poverty the indian government shoul d give highest priority to additionalinvestments in ruralroads and agricul turalresearch these types of investment not only have much larger poverty impacts per rupee spent than any other government investment but also generate higher productivity growth apart from government spending on education which has the third l argest marginalimpact on ruralpoverty and produc

structural path analysis and multiplier decomposition within a social accounting matrix framework the main purpose of this paper is to apply structural path analysis to a social accounting matrix sam framework because the sam is a comprehensive essentially general equilibrium data system the whole network through which influence is transmitted can be identified and specified through structural path analysis the latter provides an alternative and much more detailed way to decompose multipliers as compared with the traditional treatment of stone 1978 and pyatt and round 1979 this paper consists of five sections the first one reviews the sam framework as a basis for multiplier analysis and multiplier decomposition in particular the additive decomposition in terms of transfer open loop and closed loop effects is succinctly presented section ii applies this conventional decomposition to a sam of south korea to illustrate with eleven specific cases the effects of an exogenous injection on the endogenous accounts of the sam i e the incomes of the factors household groups and production activities section iii is devoted to the presentation of the elements of structural analysis and more particularly the transmission of economic influence within a structure finally section iv applies structural path analysis to the south korean sam and compares and contrasts the multiplier decomposition which it yields with the alternative decomposition discussed in section ii the comparison is the more significant in that the two decomposition methods are applied to the same eleven selected cases spanning a variety of sectors i e poles of origin for the injection and sectors poles of destination the empirical analysis in section iv suggests that structural path analysis applied to a sam is a potentially operationally useful technique within which a whole series of policy issues can be addressed the final section is devoted to a brief summary and conclusions

gender agricultural production and the theory of the household virtually all models of the household assume that the allocation of resources is pareto efficient within many african households agricultural production occurs on many plots controlled by different members of the household pareto efficiency implies that factors should be allocated efficiently across these plots i find in contrast that plots controlled by women are farmed much less intensively than similar plots within the household controlled by men the estimates imply that about 6 percent of output is lost because of inefficient factor allocation within the household the paper suggests a new approach to modeling intrahousehold allocation consistent with the empirical results

structural benefit transfer an example using vsl estimates abstract this paper describes and illustrates a method for benefits transfer referred to as preference calibration or structural benefits transfer this approach requires selection of a preference model capable of describing individual choices over a set of market and associated non market goods to maximize utility when facing budget constraints once the structure is selected the next step involves defining the analytical expressions for the tradeoffs being represented by the set of available benefit measures these algebraic relationships are used with the benefit estimates from the literature to calibrate the parameters of the model the calibrated model then offers the basis for defining the new tradeoffs required for the policy analysis i e for transferring benefits a new application is used to illustrate the structural benefits transfer logic it involves the benefits for mortality risk reductions measured with labor market compensation a worker would accept to be willing to work with added risk the measure is usually labeled the value of a statistical life vsl our application indicates that we should not have expected differences in these measures for the economic value of risk reductions with age the calibrated estimates were not greatly different for combinations of risk levels labor supply choices wages and non wage income for older adults thus simple adjustments relying on value per discounted life year remaining seem questionable

is public expenditure productive abstract this paper considers the relationship between aggregate productivity and stock and flow government spending variables the empirical results indicate that i the nonmilitary public capital stock is dramatically more important in determining productivity than is either the flow of nonmilitary or military spending ii military capital bears little relation to productivity and iii a core infrastructure of streets highways airports mass transit sewers water systems etc has most explanatory power for productivity the paper also suggests an important role for the net public capital stock in the productivity slowdown of the last fifteen years

remittances and labor force participation in mexico an analysis using propensity score matching summary about 2 5 million mexicans migrated to the united states during 1997 2002 and 1 6 million of them sent remittances to their families did recipients change their labor force status in response to these remittances this question has been examined before unlike the previous studies we separate persistent from sporadic remittances and we use propensity score matching to measure differences in behavior we find limited evidence of labor force participation effects of persistent remittances which is broadly consistent with remittances being an integral part of household s income generation strategy

the effects of rural electrification on employment new evidence from south africa this paper estimates the impact of electrification on employment growth by analyzing south africa s mass roll out of electricity to rural households using several new data sources and two different identification strategies an instrumental variables strategy and a fixed effects approach i find that electrification significantly raises female employment within five years this new infrastructure appears to increase hours of work for men and women while reducing female wages and increasing male earnings several pieces of evidence suggest that household electrification raises employment by releasing women from home production and enabling microenterprises migration behavior may also be affected jel h54 l94

evidence on purchasing power parity from univariate models the case of smooth transition trend stationarity recent research has found that trend break unit root tests derived from univariate linear models do not support the hypothesis of long run purchasing power parity ppp for us dollar real exchange rates in this paper univariate smooth transition models are utilized to develop unit root tests that allow under the alternative hypothesis for stationarity around a gradually changing deterministic trend function these tests reveal statistically significant evidence against the null hypothesis of a unit root for the real exchange rates of a number of countries against the us dollar however restrictions consistent with long run ppp are rejected for some of the countries for which a rejection of the unit root hypothesis is obtained

the demand for food and calories we investigate nutrition and expenditure in rural maharashtra in india we estimate that the elasticity of calorie consumption with respect to total expenditure is 0 3 0 5 a range that is in accord with conventional wisdom the elasticity declines only slowly with levels of living and is far from the value of zero suggested by a recent revisionist literature in these indian data the calories necessary for a day s activity cost less than 5 percent of the daily wage which makes it implausible that income is constrained by nutrition rather than the other way around

benefit transfer via preference calibration prudential algebra for policy this paper proposes a new approach to benefit transfer the method assumes a specific form for preferences and uses available benefit information to identify and calibrate the preference parameters to match the existing benefit estimates this approach assures economic consistency of the transfers benefit measures can never be inconsistent with household income the logic also offers a series of potentially observable predictions that can be used to gauge the plausibility of benefit transfers when multiple benefit estimates from different methods are available such as hedonic property value travel cost demand and contingent valuation the framework uses the definition of the benefit concept from each method in a single preference function to reconcile differences it provides a specific way to take account of baseline conditions and scope effects i e the size of the proposed change consistently in the transfer the method is illustrated using estimates for benefit measure changes in water quality from three studies travel cost demand hedonic property value and contingent valuation analysis q26

career and marriage in the age of the pill genuine change in the economic and social status of u s women did not emanate simply from their increased labor force participation but rather from their increase in professions and as career women those changes first began in the late 1960 s and early 1970 s we examine here one factor of momentous importance in this break with the past the economist 31 december 1999 recently named it the greatest science and technology advance in the twentieth century it is the oral contraceptive known worldwide by its moniker the pill in 1960 18 4 percent of professionals were women as were 4 7 percent of high powered professionals by 1998 36 4 percent of professionals and 25 1 percent of the high powered subset were women we explore in this article a series of connections that link the birth control pill to the increase of women in professional occupations our evidence for the impact of the pill relies largely on the timing of various changes changes in laws giving minors certain adult rights and lowering the age of majority enabled young and unmarried women to obtain the pill young women s control over their fertility directly reduced the costs to them of engaging in long term career investments the pill also served to increase the age at first marriage and thus indirectly reduced a potential penalty of delaying marriage to pursue professional education and training all of these changes began in the late 1960 s and early 1970 s the late 1960 s and early 1970 s were years of tumultuous social and political change how can we separate the impacts of affirmative action the resurgence of feminism changes in social norms and abortion reform from the impact of the pill the simple answer is that the timing of several of these changes is far less convincing than is that of the pill in affecting career investment but that is not the complete answer the economic impact of the pill did not occur in isolation legal change made it possible for young women to obtain contraceptives these changes paradoxically did not stem primarily from concerns regarding access to contraception they were instead part of the larger political movement of the 1960 s the pill moreover unleashed social change by enabling an increase in the age at first marriage there is also no doubt that the rebirth of feminism long in the making served to complement and reinforce the pill s impact our argument for the importance of the pill in affecting women s career decisions relies on the correspondence among breaks in various time series and in the logic of the relationships among the pill career and marriage we will begin with the time series on career and marriage which can be viewed as the dependent variables the evidence on the diffusion of the pill the independent variable is taken up next the logic of our argument relating pill use career and marriage follows and finally we present our defense for why we believe the pill packed considerable power in altering the social and economic status of american women

public schooling for young children and maternal labor supply as policy makers have sought to reduce the welfare rolls by increasing labor supply among single mothers much attention has been given to the possible role of expanded child care subsidies including direct provision of public preschool at the same time public interest in child care subsidies for two parent households is high for example former vice president gore not long ago proposed to make high quality pre school fully available to every family for every child in every community in america albert gore 1999 in this paper i use 1980 census data to estimate the effect of public school enrollment for a woman s five year old on measures of labor supply and public assistance receipt this approach has two advantages first i am able to estimate the effect of a large implicit child care subsidy 1 second because public kindergarten is universally available to all age eligible children where it is provided selection problems related to means testing do not arise a difficulty with public school enrollment arises because parents may choose to hold their children back a year or enroll them in private school i deal with this issue by using five yearold s quarter of birth qob variables as instruments for public school enrollment status this strategy works because parents ability to enroll a child in public kindergarten in the academic year when the child turns five typically depends on the calendar date of the child s birth 2 in most states children born in the second quarter april 1 june 30 of 1974 will have been eligible to start kindergarten in the fall of 1979 while children born in the first quarter january 1march 31 of 1975 generally will not eligibility for children born between july 1 and december 31 1974 depends on the rules where they live 3

impact of rural industrialization on village life and economy a social accounting matrix approach the effects of decentralization of industries on rural development is one of the neglected topics in the recent development literature of india the impact of industrialization was studied intensively in the early 1970s when the second and third five year plans were emphasizing creation of large industrial units especially basic industries it was observed that such industrialization did not have much effect on rural development industrialization was taking place in a few pockets having little impact on the surrounding areas the industrial scene in the 1990s is quite different instead of basic industries chemical engineering and consumer goods industries dominate the scene industries are being established outside the megalopolies many small industrial towns have come into existence and the process of rural industrial decentralization appears under way so far there has been little analysis of how such decentralization of industries is affecting rural growth and development some indications of the impact do exist in the literature but they do not take into account important factors such as the development of the service sector around the factory and the changes in the village employment structure and in the socioeconomic fabric of village life 2 in this study we attempt to revive the debate on the impact of decentralization of industries on rural development we compare two relatively similar indian villages one close to a factory boriya and another located in a remote area aurepalle to provide insights on the socioeconomic effects of industrial decentralization field surveys of socioeconomic characteristics of households were conducted in both villages to understand better how people s outlook the employ

evaluating the effects of optimally distributed public programs child health and family planning interventions this paper develops and tests an optimizing model determining the distribution of family planning and health subsidies across heterogeneous households and assesses the biases in cross area estimates of the health effects of such subsidies due to public resource optimization the model incorporates both health externalities and the endogenous response of the size of the recipient population to program subsidies longitudinal data describing child health and publicly provided family planning and health programs in 20 barrios in laguna province in the philippines are used to estimate the effects of such programs on child health and the relationships between the distribution of the programs and preprogram health levels the impact of a program on a particular childs health status is viewed as dependent upon the childs length of exposure to the program a basic feature of the model is the presence of health externalities which is shown to be sufficient along with plausible features of household behavior to make selective subsidization of fertility control either alone or in combination with health investment subsidies pareto efficient the model suggests that subsidization of fertility control is likely to be pareto efficient in the presence of health or human capital externalities when human capital and family size are gross substitutes and or when any per child human capital subsidies may substitute for direct subsidies to health investment and an equalizing distribution of the subsidies the highest family planning subsidies to the lowest health recipient households is efficient when both health and family planning subsidies are used fertility control subsidies minimize the subsidy burden for donors and are highest when total subsidy expenditures per child are greatest