rafmacalaba/data-use-mentions-extended huggingface dataset:
these investments and their lack of constraints in accessing them. In fact, according to a survey commissioned by the government in one of the countries where we started an evaluation, approximately 25 percent of the firms receiving the matching grant stated that they would have pursued the activity fully anyway and an additional 49 percent confirmed that they would be pursuing the activity in the absence of the matching grant, albeit using a less expensive consultant (31 percent of total), at a later stage (10 percent), or at a smaller scale (8 percent). Examples of less successful uses of the matching grant, or at least of apparent limited public benefits, include providing business services to firms who have the skills, knowledge and capacity to conduct the activities and are expected to invest in those areas. These comprise, for instance, an IT company receiving a matching grant to develop a website or a travel agency wanting continuous support to participate in various international tourism fairs. Applications like these are attractive both to the business (little risk and they continue doing the 10
# **CHAPTER 2:  CONSTRAINTS ON THE SUPPLY OF FINANCIAL SERVICES**

1. This chapter examines supply side aspects of access to financial services in Colombia from the perspective of constraints on financial institutions in Colombia that prevent low income clients from gaining access to formal banking services.  Three groups of supply side issues have been identified: (i) regulatory issues, (ii) cost constraints and (iii) physical difficulties.  The following will look at each one of these in more detail.

## **2.1 REGULATORY CONSIDERATIONS**

2. In Colombia, existing regulation has a mixed impact on the use of financial services. On the one hand, norms such as strict account opening requirements and taxation on financial services might discourage the use of formal financial services. On the other, regulation on income tax returns and sales tax refunds on credit and debit card transactions could encourage the use of formal banking services.

3. **Existing regulation constraints entry to formal financial services for low income people.** Anti-money laundering regulation introduced in 2003<sup>20</sup> created a number of complex account opening requirements. In order to open an account with a Colombian bank, individuals have to provide multiple documents, including proof of identity, employer information and monthly income and expense statements, such as proof of salary and rental payments (see Table 2.1). These information requirements apply to all clients regardless of their socio-economic characteristics. By implicitly assuming that clients are active in the formal economy, this regulation creates significant barriers to entry for low income clients. As the demand survey shows (see Chapter 3.1), a significant share of the unbanked is not active in the formal sector, and hence, cannot fulfill the formal eligibility criteria, such as proof of income or employment. Consequently, low income people are severely disadvantaged under existing regulation. In addition, multiple documentation requirements are needed to open a savings account in Colombia<sup>21</sup>
program, provinces that privatized their banks should have little incentive to bail out troubled institutions.30 However, owners of privatized provincial banks are not in exactly the same situation as other private bankers -- most received a contract to continue providing banking services to the province as part of their sales agreement. As banker to the provincial government, privatized provincial banks maintain a privileged position within the banking industry whicil may distort incentives. In this section, we compare privatized provincial banks with well-established private ones to determine whether they operate similarly. Available post-privatization data strongly suggest that, despite their service contracts with the provinces, privatized provincial banks did change their operations substantially. Their similarities withi private banks are now far more pronounced than their similarities with the remaining public provincial banks. Importantly, although we cannot quantify the social welfare benefits, the data indicate that credit allocation is improving. While the focus of this paper is on the fiscal benefits to the provinces -- which appear to be quite substantial -- it is quite likely that the most important benefit of privatization is the economic growth that should follow from improved credit allocation. Indeed, these benefits could make it wise to privatize even if the fiscal calculus did not favor privatization.

**IV.1 Operating Income and Costs**

The pubic provincial banks' low ratio of operating income to administrative costs is one indicationi of their inefficiency. Between 1993 and 1996 the typical public provincial bank generated only .77 pesos in total income (net financial income and income from services) for every peso spent on administrative costs (Table 7). The typical private bank, in contrast, generated 1.44 pesos in income for every peso incurred in costs and the typical privatized

> 30 We recognize, however, that systemic bank crises do occur, and that governments often intervene to prevent financial system collapse. See Gerard Caprio, Jr. and Daniela Klingebiel, "Bank Insolvencies: Cross Country Experience," World Bank, April, 1996. However, it should also be noted that
for those who are from outside Khartoum,

> 16 The study by Buttorff and Welborne primarily used data from the Arab Barometer’s 2006–2007 survey. 17 Mann’s research draws on, “...18 months of ethnographic fieldwork conducted on university campuses and recruitment centres between 2008 and 2010, 159 interviews with civil servants, managers and job seekers and a 400-person survey conducted in 14 different organisations (three banks, two engineering consultancies, one large private family business, four hospitals and four NGOs) and on public busses” (Mann 2014, 562).

33
When the distance between the centroid of a cluster (that is, the enumeration area for the DHS and the LSMS, and the city for the WBES) and the location of the nearest optical-fiber node is less than two kilometers, we consider individuals or firms in that location to be connected to the internet network. Approximately 42 percent and 6 percent of individuals have access to the internet in our DHS and LSMS data, respectively.<sup>7</sup> About 78 percent of the firms in our WBES sample are connected to the internet. An individual (resp. a firm) is connected to submarine internet if that individual (resp. firm) is connected to an optical-fiber node after the arrival of submarine internet. Individuals connected to submarine internet represent 19 percent of the DHS sample and 5.5 percent of the LSMS sample, and firms connected to this technology represent 36 percent of the WBES sample.

# **3.2 Identification Strategy**

To identify the “joint” causal effect of roads and internet infrastructure on the labor market, we compute distances between the nearest infrastructure and the location of the household or firm. In this part, we combine difference-in-differences (DID) and instrumental variables (IV) techniques to answer endogeneity concerns. We rely on: (1) a DID strategy to explore the causal effect of submarine internet access, and (2) an IV approach to examine how the proximity to roads interacts with internet access.

## **3.2.1 The Model**

In the first stage, we estimate the following equation: where _Dist.Roadsi,g,t_ is alternatively the measure of the negative distance (or

> 7While the DHS is more geographically representative, the LSMS oversamples individuals in rural areas, which explains the difference in the share of the population connected to the internet across the two samples.

15
----`|<br> <br>`--`|<br>`60`<br>`----------`|<br>`62`<br>`-----------`|<br>`60`<br>`-----------------`|<br>`48`<br>`--------------------`|

``` Notes: This table presents five regressions, where each column reports the findings from an instrumental variables regression.
``` ``` The dependent variables, measured in 2011, are:Private Monitoring Index measures the degree to which regulatory policies encourage and facilitate private sector monitoring of banks; Official Supervisory Power Index measures the extent to which official supervisory agencies have the authority to take specific actions to prevent and correct problems; Entry Restrictions Index measures the number of specific legal requirements for obtaining a banking license; and Restrictions on Activities Index measures regulatory restriction on the degree to which banks can engage in securities, insurance, and real estate activities plus restrictions on banks owning and controlling nonfinancial firms. Government Owned Banks equals the percentage of the banking system’s assets held by banks that are 50% or more government owned.
``` ``` The explanatory variable of focus is Voice & Accountability, which measures the degree to which average citizens have voice in the political process and the degree of accountability on the part of politicians (Kaufmann, Kraay, and Zoido-Lobaton, 1999).
``` ``` The unreported, though included in the second-stage instrumental variables, arethe legal origin of each country (that is, we include three dummy variables for Common, French civil, and German civil law countries respectively).
``` ``
0.12|
|Nigeria|0.58|0.34|0.57|0.36|0.48|0.22|
|Pakistan|0.64|0.34|0.63|0.27|0.48|0.25|
|Vietnam|0.51|0.19|0.52|0.16|0.48|0.12|
|AVERAGE|0.57|0.28|0.54|0.24|0.48|0.19|

Note: This table compares the share of the survey sample by age and sex, with the internet-using population and general population in each country. Sources: ITU (2023); Household Income and Expenditure Surveys.
and social deprivation|3.0|1.2|0.5|1.7|
|national AROPE rate|32.2|19.9|15.9|34.4|

Note: Percentage of individuals (using survey weights). AROPE rates of 2022 are not anchored to 2019, as in Figure 1 and Figure 2. AROPE identifies individuals as multidimensionally poor if they are deprived in at least one dimension (union criteria), so the national AROPE rate corresponds to the sum of individuals deprived in 1, 2, or 3 dimensions. See Table 1 and Table 2 for a detailed description of each AROPE dimension.

Source: Own estimates based on 2022 EU-SILC. We report the survey year and not the income year. AROPE definition based on EU2030 target.

# **An in-depth analysis of the items that compose the material and social deprivation dimension indicates that the most prevalent deprivations in all countries are the capacity to face unexpected expenses with one's own resources, to afford one week of annual holiday, and to**

**replace worn-out furniture.** Romania, followed by Bulgaria, has the largest proportion of individuals facing these household-level deprivations, with nearly half of the population not being able to afford these items (Table A3.4). Interestingly, Croatia has a similar percentage of individuals who cannot afford unexpected expenses (44.9 percent) and annual holidays (41.7 percent) in comparison to Bulgaria, despite having a very low proportion of individuals materially and socially deprived (3.9 percent). This suggests that Croatian households face significant challenges in their capacity to afford these items, as well as in their capacity to being confronted with payment arrears <mark>(on mortgage or rental payments, utility bills, hire purchase installments or other loan payments)</mark> (15.6 percent), even though they have relatively less difficulty in affording other household-level goods and services. In addition, a more heterogeneous
APPENDIX

# **Online Appendix to “Sovereign Bonds since Waterloo”** Meyer, Reinhart, Trebesch (QJE)

## **Overview:**

Appendix A: Financial and macroeconomic data Appendix B: Bond prices and investor returns (starting on page A4) Appendix C: Debt restructurings and haircuts (starting on page A42)

# Appendix A: Financial and macroeconomic data

This Appendix lists the data sources on financial and macroeconomic variables used in the paper.

### <u>Three-month UK bills, monthly, since 1815</u>

The 3-month UK bill return index in the 19<sup>th</sup> century builds on data by GFD and includes observations from commercial bills (open market rates of discount). For the years 1815-1823 the data comes from Homer (1967). For 1824-1857, the series is retrieved from the NBER Macrohistory database that draws on the open market rates reported in the UK “Parliamentary papers”. For 1857-1899 the bills data comes from The Economist and the Investor’s Monthly Manual. For 1900-1913, the series comes from the NBER Microhistory database and for 1914-1923 from Morgan (1952). The data since 1924 is retrieved from the Central Statistical Office of the British government.

### <u>Three-month US bills, monthly, since 1835</u>

The 3-month US bills return series draws on various sources. From 1835-1918, we use the approximated series by GFD, which is based on the minimum rate of the coupon on US Government bonds and commercial bills. For the years 1835-1862, that data was retrieved from Homer (1967), Martin (1886), The Economist (1854-1861) and the periodical Hunt’s Merchants Magazine (1843-1853). From 18621918, data comes from The Financial Review. From 1919 onwards, data is retrieved from the Federal Reserve Bank using 90-day Treasury bills. From 1920 until 1942, the data comes from the Federal Reserve Bank, National Monetary Statistics. From 1942 onwards, we retrieve
# **What Does Debt Relief do for Development? Supplemental Appendix**

## **A Data Appendix**

_Debt Relief_ : ’Debt Relief’ refers to the total amount of debt relief granted as a result of the program. ’Eligible Amount’ refers to the total outstanding balance to which the program rules were applied, denominated in Indian Rupees and published on bank beneficiary lists as of February 28, 2008. ’Eligible Amount, Total’ is the sum of ’Eligible Amount, Principal’ and ’Eligible Amount, Interest’.

_Landholdings:_ Land pledged as collateral at the time of loan origination (a) Bank recorded: land pledged as collateral at the time of loan origination from published beneficiary lists for 5,554 households within _±._ 5 hectares of the program cutoff (b) Audited land records: printouts of electronic (eDhara) land records for a sub-sample of 2,064 surveyed households.

_Investment:_ ’Total investment’ includes investment in irrigation, pesticides, non-organic fertilizer and plowing, averaged over one dry season and one monsoon season before the program (pre-program investment) and one dry season and one monsoon season after the program (post-program investment), and winsorized at the 99th percentile. ’Investment per Acre’ is calculated as productivity per self reported acres of land prior to the program.

_Productivity:_ Revenue from sale of crops, averaged over one dry season and one monsoon season prior to the program the program (pre-program productivity) and one dry season and one monsoon season after the program (post-program productivity) and winsorized at the 99th percentile. ’Revenue per acre’ is measured as total revenue per self-reported acres of land prior to the program.

_Total Debt:_ Total Debt refers to self-reported debt from formal and informal sources, at the time of the survey and prior to the program. Formal credit includes loans from private and public banks. Informal credit includes loans from family and friends, moneylenders, traders and shopkeepers.

_Sources of Credit
Law 22/1999 spells out 11 obligatory functions of local governments (table 1). The revised Law 32/2004 removed the omnibus assignment of the residual functions to regional governments and stipulated 15 obligatory functions and a number of discretionary functions.

**Table 1.  Obligatory Functions of Sub-national Governments under Laws 22/1999 and 32/2004**

|Law 22/1999 functions|Law 32/2004 functions|
|---|---|
|Infrastructure (public works)|Development planning and control|
|Health|Planning, utilization, and supervision of zoning|
|Education|Public order and peace|
|Agriculture|Providing public means and facilities|
|Communication|Handling of health sector|
|Industry and trade|Education|
|Cooperatives|Social affairs|
|Land administration and zoning|Employment promotion|
|Capital investments|Facilitating the development of cooperatives and small|
|Environment|and medium-size businesses|
|Employment promotion|Environment<br>Agriculture|
||Demographics and civil registry<br>Administration affairs<br>Capital investment<br>Other mandatory affairs as instructed by the laws and<br>regulations|

_Source:_ Eckardt and Shah (2007) Decentralization policy mainly emphasized the third tier of government, because provinces were perceived as potential drivers of political disintegration. Compared with local governments, provinces have far more limited responsibilities, a fact that is also reflected in their much smaller share of expenditures. The provincial level has a double role as an autonomous regional government and as the regional representative of the national government. Provinces are mainly responsible for supervisory functions and are supposed to intervene in matters that require crossjurisdictional cooperation. Law 32/2004 explicitly strengthens the coordinating role of provincial governments as regional representatives of the central government, a step that was based on the perception that closer central supervision and oversight are needed to make decentralization work more effectively.

In practice, the distribution of specific responsibilities is regulated by a number of sectoral laws and numerous government regulations and ministerial
. Using a non-parametric matching methodology to analyze DHS data from 1995, Sánchez et al. (2004) found that Colombian women who suffered physical violence had 14% lower earnings than women who did not suffer violence. Using more recent data from 2003, they estimated that the wage loss due to family violence was equivalent to 0.85% of GDP in 2003.

One weakness of the accounting approach is that any list of categories is essentially arbitrary, and alternative categorizations can always be devised (Buvinic and Morrison, 1999). An even more serious weakness is that key categories of costs can be inadvertently left out of the calculations. For example, the indirect cost category mentioned above focuses on productivity and earnings losses of female survivors, but does not discuss the impact that witnessing or being a victim of family violence may have on children. These impacts may include: poorer performance in school (Larraín et al., 1997); increased probability of delinquency, both as a juvenile and as an adult (Windom, 1989; Dahlberg, 1998; Thornberry et al., 2001); 13
, using consumption data from SENER, we identified the four main types of fossil fuel used in manufacturing. These are natural gas, diesel, petroleum coke, and coal and account for 85% of other fuels consumption, and 68% of total energy consumption

> 26To test the robustness of these weights, we used alternatively current year weights and the results do not change.

> 27 Thus, we assume that energy consumption is proportional to production volumes over the year. For each plant we compute shares in 2009 to avoid potential endogeneity of time-varying proportions.

18
</sup> showing that the Hartwick Rule is a special case of a more general rule for sustainability. We extend the results in Hamilton and Withagen (2004) to determine the properties of a constant net saving rule – constant positive net savings entails a path for consumption that rises without bound. We then apply this rule and the standard Hartwick Rule to our historical data on investment and resource rents covering 1970-2000.

# **The Generalized Rule for Sustainability**

For a quite general model of a dynamic economy, Hamilton and Withagen (2004) establish that if the economy is competitive (households maximize utility while firms maximize profits) and if externalities are internalized through Pigovian taxes, then utility _U_ , consumption _C_ , net (genuine) saving _G_ and interest rate _r_ are related as follows:

> 1 See Auty 2001, Ch. 1 for a good overview. One of the earliest studies was Sachs and Warner (1995).

> 2 Note that Asheim _et al._ (2003) question whether the Hartwick rule is truly prescriptive. This is partly because a commitment to invest resource rents _now_ cannot commit future generations to do the same.

> 3 Hamilton and Hartwick (forthcoming) and Hamilton and Withagen (2004).
# **1 Introduction**

Despite recent economic growth, increased health spending and improved coverage of key health interventions, the Philippines continues to struggle with persistently high child undernutrition. In nationally representative 2015 survey data, nearly 1 in 3 children under age 5 were stunted, a principal marker of undernutrition, and that figure was essentially unchanged from a decade previous. The World Bank’s Systematic Country Diagnostic highlights addressing the high level of undernutrition as a principal policy for the country. The government’s core planning document, the Philippine Development Plan, also recognizes the undernutrition challenge, and the government’s nutrition strategy, the Philippine Plan of Action for Nutrition, sets out an ambitious target of reducing stunting to 20 percent by 2022.<sup>1</sup> Policy attention to the issue is motivated by a large body of international research which shows that undernutrition in utero and early childhood has severe consequences. Childhood undernutrition is associated with increased risks of morbidity, mortality and cognitive deficits.<sup>2</sup> Longitudinal studies show links between childhood undernutrition and reduced schooling, learning outcomes, and economic productivity as an adult. One of these studies is the Cebu Longitudinal Health and Nutrition Study, which has tracked children born in the Philippines in the early 1980s. Children in the Cebu study who were stunted between birth and age 2 were found to have on average lower cognitive test scores at the ages of 8 and 11 years, delayed enrollment in school, higher absenteeism and repetition of grades, and a lower likelihood of holding a formal job in early adulthood.<sup>3</sup> Recent studies suggest that the total costs of childhood undernutrition in the Philippines is in the range of 1.5 to 3 percent of GDP per year.<sup>4,5</sup> There is growing evidence that cognitive, motor and socio-emotional deficits in early childhood, as well as schooling and learning outcomes later in life, are mediated through the brain’s architecture
(IHS plus geospatial predictors) performs much better when using the full sample of households than when only using the bottom half for each village. The rank correlation increases from 0.13 to 0.19 and the AUC increases from 0.53 to 0.59. This is because on average there are only approximately sixteen households interviewed in each village in the IHS, and average per capita consumption is much more accurately measured when all sample households in each EA are used to train the model rather than only the bottom half. The resulting predictions, when using the full IHS sample, also performs better than the Meta relative wealth index. In this context, when trying to predict the average predicted per capita consumption from a census extract, the fact that the RWI uses additional training data from many countries and proprietary indicators on connectivity does not fully compensate for the fact that it is trained to predict an asset index rather than a consumption-based welfare measure. Therefore, a model that predicts average village per capita consumption directly on the basis of publicly available geospatial characteristics is slightly superior for targeting in this context, though both are far worse than collecting additional partial registry data to train a better geospatial model.

21