rafmacalaba/data-use-mentions-extended huggingface dataset:
market participation and liquidity (Copeland and Galai, 1983; Kyle, 1985; Glosten and Milgrom, 1985). As a result, cross-ownership structures and extensive investor-industry relations might curb the expected benefits from the presence of institutional investors, limiting market deepening and development.

Despite the prevalence of business groups structures in developing countries, little research has analyzed how institutional money managers which belong to these groups use their access to in-house information, and the consequences for secondary market liquidity.

In this paper we investigate these issues in the context of a developing country. We examine trading behavior of Colombian institutional investors in publicly traded firms that belong to their business group and analyze the effects of institutional ownership concentration on secondary market liquidity. We divide our analysis as follows. First, we test whether institutional investors have private information on the firms that belong to their business group by studying whether trading activity in affiliated firms better predicts future stock returns than trading in non-affiliated firms. Second, we use the merger and acquisition activity of money management institutions in the country as a natural experiment to study the extent to which greater institutional stock ownership concentration affects trading activity and transaction costs.

We use data on monthly portfolio holdings of all active Colombian pension funds in domestic stocks from 2004 to 2014. These funds are managed by Pension Fund Administrators (PFAs) which are asset management companies, either foreign-owned or owned by domestic business groups. We use ownership data on publicly traded companies and take pyramiding and cross-holdings into account to determine the control rights of the principal shareholder, as is now common in the literature (e.g. Claessens et al., 2002; Faccio and Lang, 2002). We classify each stock-PFA pair as part of the same business group when they share the same principal shareholder.

We test whether trades by affiliated funds are more correlated with future stock performance than trades by non-affiliated funds in the same stock, and relative to trades by the 2
by virtue of being more wanted, post-ultrasound daughters in firstborn-girl families receive higher parental investments than girls born pre-ultrasound, narrowing investment gaps in these families between sons and daughters, relative to children in firstborn-boy families. Similarly, parents who achieve their desired sex-mix of births using sex-selective abortion in the post-ultrasound period have no need to use son-biased fertility stopping.<sup>40</sup> A corollary of this is that actual fertility should move closer to desired fertility and we are able to test this as, unusually, we have individual data on desired fertility. Finally, we argue that if it is the availability of sex-selective abortion rather than something else that is driving our findings, then we should see an increase in birth spacing in the post-ultrasound period among families with firstborn girls relative to other families. We also investigate heterogeneity in treatment impacts by different indicators of SES with a view to further elucidating mechanisms.

# **6.1 Postnatal Health Investments**

We posited above that declining under-5 mortality among girls signals increased parental investments in them. We directly test for this in Table 4. The outcomes are the number of months a child is breastfed;<sup>41</sup> a dummy variable indicating that the child has received at least one vaccine; and medical expenditure (in rupees) on the child in the year prior to the survey.<sup>42</sup> Pre-ultrasound, in families with a firstborn girl, boys were breastfed for a longer duration and were more likely to be vaccinated and to receive expenditure during illness. The estimates show that the gender gaps in breastfeeding and vaccination significantly declined during the post-ultrasound period in firstborn-girl families, although in some cells we lose significance for breastfeeding coefficients. The coefficients for medical expenditure during sickness are also positive, but imprecise, and only significant in one specification. A previous literature estimates that breastfeeding differences explain about 9 percent of the gender gap in post-neonatal child mortality in India (Jayachandran and Kuziemko (2011)) and that sex differences
previous network in terms of its role in propagating domestic and international shocks. How does the predicted impact of the shock depend on whether we account for informality? Are sectors and regions with more informality more or less vulnerable to shocks than the administrative data would suggest? To answer these questions, we first simulate a series of domestic output shocks that reduce each firm type’s output and then analyse how it affects the output of all other types, both directly and indirectly, by propagating through the network over multiple time periods. Then, we simulate international supply shocks that affect firm types depending on their exposure to international markets. We discuss the results for both domestic and international shocks below.

> 27We compute this by running the Leiden algorithm multiple times and averaging the resulting modularity scores. See Traag et al. (2019) for details on the algorithm.

28
of smallholders while in the smallholder sector, fear of land loss is high and associated with significant productivity losses for female cultivators, and, contrary to earlier literature, the inheritance regime is not a major impediment to smallholder investment or productivity. The estimated present value of fear-induced productivity losses is estimated to exceed the amount of resources required to implement a low-cost systematic tenure regularization program along the lines of Rwanda.

Two implications for policy stand out. First, even in the customary regime, piloting of approaches to secure tenure especially for women, accompanied by careful real-time evaluation, could thus help inform next steps to feed into regulation for Land Bill implementation. Second, where land had been transferred to estates historically, this would need to be preceded by use of digitized administrative data -including on boundaries or (expired) lease documents- to adjudicate rights in a way that, where needed, would reconcile legal rights with current occupancy status. Major steps for doing so would include (i) revision of lease fees to bring them more in line with productive potential; and (ii) establishment of a systematic process to

> 23 Estimated coefficients on male members’ input are slightly above that for women and children or hired workers 24 Such analysis will be valid if inheritance regimes are exogenously given and do not change over time. 13
**Figure 5: Total External Liabilities have built up in India, outpacing GDP; while its composition has tilted towards equity**

<!-- Start of picture text --> FDI Portoflio equity<br>900,000 portfolio Debt Loans 735<br>Deposits Trade Credit<br>800,000<br>Total Liabilities, Index (RHS) GDP, Index (RHS) 635<br>700,000<br>535<br>600,000<br>500,000 435<br>400,000 335<br>300,000<br>235<br>200,000<br>135<br>100,000<br>0 35<br>Million US $<br>Index=100 in 1996-97<br>1996‐97 1997‐98 1998‐99 1999‐00 2000‐01 2001‐02 2002‐03 2003‐04 2004‐05 2005‐06 2006‐07 2007‐08 2008‐09 2009‐10<br>2010‐11 2011‐12 2012‐13 2013‐14<br><!-- End of picture text --> Source: RBI Handbook of Statistics on the Indian Economy; World Development Indicators, World Bank. Capital flows refer to net capital flows.

Indeed this large exposure to foreign capital has also rendered India vulnerable to external shocks, as e.g. was the case during the tapering tantrum of summer 2013, when India was among the most affected countries. Eichengreen and Gupta (2014) analyzed the impact of the Fed’s tapering talk on exchange rates, foreign reserves and equity prices in emerging markets between April-August 2013. They established that an important determinant of the impact across emerging markets was the volume of capital flows that countries received in prior years and the size of their local financial markets. Countries receiving larger inflows of capital and with larger and liquid financial markets experienced more pressure on their exchange rates, reserves, and
which suggest the ln PD term dominates ln AD, ln RPA and ln PPD.<sup>13</sup> In short the measures of the differential degree of clustering within cities do not seem to add to the analysis.

There are two issues with drawing the conclusion that we should focus on PD rather than PPD or RPA measures for cities. First concerns measurement error. Use of Landscan data measures within-city clustering and inequality with error. While Landscan may do a better job than other currently available data sets, the assignment of people to work and residential locations is surely done with considerable error, which would bias the coefficients downward. The second issue concerns our measure of clustering. While our measure of clustering fits into a decomposition and is a standard measure in looking at spatial inequality, there are other standard measures. We look at one of these. In a context with so many grid cells in each urban area but a varying number, we preferred the spatial Gini to use incomparison over HHI based ones or a Theil index. We calculated the spatial Gini of cell concentration of economic activity within each city.<sup>14</sup> In column 7 of Table 7, the Gini has a completely insignificant coefficient. Of course, as for the coefficient of variation and covariance terms, the small size of the coefficient relative to the standard error could be explained by measurement error.

The conclusion for this sample and data is that a simple population density measure works as well as more nuanced measures, in attempting to capture economic density of cities in explaining income differences.

# **5.2.2 Does neighborhood density matter?**

A key issue as noted in the introduction is that studies suggest that within cities there are local scale externalities which decay sharply with distance so that from that perspective firms in one neighborhood do not interact with firms in another (Arzaghi and Henderson,

> 13In terms of horseraces for ln PD vs ln AD the ln PD term is positive at 0.74
Penh, exporting firms, and those with poor access to formal finance suffered more losses of sales and falls in profits. The deeper impact on the profits for less productive firms suggests a well-functioning market where more efficient firms weather downturns better than less efficient firms. The mechanism at play is that less efficient firms had to cut output prices to maintain market shares since they could not compete on quality, hence leading to a deeper impact on profits.<sup>5</sup> Based on the CRBS 2009 survey, an estimated 4 percent of formal firms went bankrupt since the previous ICS 2007/2008 survey, with another 5 percent closing for seasonal or other reasons (weighted figures). The large number of bankruptcies is at odds with the lack of formal processes to close a business (in the “Doing Business” publication, Cambodia ranks 149 out 183 of countries in the ‘resolving an insolvency’ indicator, World Bank, 2011)). This suggests that a number of firms closed without due process (and with some overdue wage payments). In the garment sector, the likelihood of bankruptcy was 18.5 percent.<sup>6</sup> In columns (5) and (6) we report the marginal effects from a descriptive Probit regression for the probability that a firm went bankrupt between the 2007/2008 and 2009 surveys. Tourism businesses and more productive firms were less likely to go bankrupt, but larger firms were, surprisingly, more likely to go bankrupt. The higher bankruptcy rate for less efficient firms again suggests a well-functioning market. Firms relying more on informal finance were less likely to go bankrupt than firms relying on, especially, trade credit (which typically would be from suppliers or buyers, and hence disrupted by the crisis).

To put these data in perspective, we compare them to similar data from other countries (Table 3). Correa and Iootty (2010) collected data for 6 countries in Eastern Europe, using a similar survey methodology with a rapid
Section 5 presents a brief assessment of the patterns of indicators of quality of life by agglomeration size and welfare. Finally, we provide a simple analysis of some of the proximate correlates of urban growth in Section 6. Section 7 concludes.

# **2. URBAN GROWTH PATTERNS**

Our examination of urban growth patterns in Brazil focuses on changes in population size and economic productivity. Both are interrelated indicators of city “success”. In the presence of free movement of labor and capital, factors of production will move to the areas that promise the highest returns. Workers and employees will therefore seek out places in which they can maximize wages given their skills and experience. Successful cities are also able to provide infrastructure and administrative support to businesses which will enhance productivity and, in turn, raise wages. High quality public services and amenities will also attract new residents, especially higher skilled workers that add disproportionately to productivity gains.

In the following sections we describe population and income dynamics in Brazilian urban areas. For this purpose we require a working definition of city, urban area or agglomeration, since there is no official statistical or administrative entity in Brazil that reflects the concept most appropriate for economic analysis: a contiguous built up area that operates as a functional economic entity. Socioeconomic data in Brazil tend to be available for municípios, the main administrative level for local policy implementation and management. Municípios, however, vary in size. In 2000, São Paulo município had a population of more than ten million, while many other municípios had only a few thousand residents. Furthermore, many functional agglomerations consist of a number of municípios, and the boundaries of these units change over time. Our analysis therefore adapts the concepts of agglomerations from a comprehensive urban study by IPEA, IBGE and UNICAMP (2002) resulting in a grouping of municípios to form 123 urban agglomerations 3
co-finance microdata collection in countries with limited resources.

If data collection is not possible, one can turn to data imputation techniques to obtain poverty estimates. This approach requires at least one up-to-date consumption survey and a non-consumption survey that collects similar individual and household socio-economic characteristics. This approach should be tested in MENA countries with established regular collection of labor force surveys (LFSs). The ongoing COVID19 pandemic can create a structural break in consumption series and may limit the possibility of imputation, calling for collection of new household budget surveys when lockdown is over.

If collection of new HBSs is not possible, and imputation is not feasible either, measuring non-monetary indicators of well-being using non-traditional surveys can be considered. For example, multidimensional poverty indexes (MPIs) can be used to track non-monetary dimensions of poverty. However, constructing MPIs is data intensive and requires information on each deprivation for all households. Multiple Indicator Cluster Surveys (MICS) and Demographic and Health Surveys (DHS) are often used for this purpose, but there are few countries in MENA where these surveys are more up to date than HBS surveys.

High phone penetration in MENA offers another alternative. Phone surveys can be valuable in conflict settings or other situations (COVID-19) when face-to-face data collection is not possible, and where the population has experienced large and sudden shocks and rapid information is needed. A key drawback of 27
Involving men in this effort has been shown to be crucial. Engaging couples in joint planning around maledominated activities, such as export-crop farming, can lead to increased female engagement in those activities (Donald et al., 2022). Moreover, providing male mentors to women is a promising avenue: having a male role model is significantly associated with women crossing over into male-dominated sectors in pooled data from 97 countries (World Bank 2022).

# **4.2 Increase Women’s Access to Productive Inputs**

## _Financial Inclusion and Business Capital_

Increasing women’s financial inclusion and capital to run their firms and farms is an important policy priority to close gender gaps in Burkina Faso, though it is worth noting that the country is already ahead in terms of financial inclusion relative to its neighboring countries.<sup>14</sup> One way to do this is by encouraging the formation and expansion of Village Savings and Loan Associations, which have been shown to be effective across contexts (Bass et al. 2014). More broadly, providing women with secure savings mechanisms (including through digital/mobile technology) can help women in generating revenue and saving for working capital for future investment (Bastian et al., 2018). A study in Côte d’Ivoire, for example, found that offering a private commitment savings account to female agro-processing workers led to an 11% increase in their earnings, primarily by increasing their attendance at work (Carranza et al, 2022).

Furthermore, making it easier for women to obtain loans can increase women’s liquidity and investment. Blattman et al (2016) showed that providing microloans along with business skills training helped to increase the incomes of ultra-poor women. Since women may have lower creditworthiness using traditional scoring mechanisms (due to lower assets, profitability, and tenure), experimenting with new methods to assess creditworthiness is a promising avenue to increase women’s access to capital. For example, using psychometric credit scoring as a substitute for loan
Pakistan, Simler (2010) who examines Uganda,<sup>4</sup> and Ivanic and Martin (2008) who simulate price increases in nine low-income countries.<sup>5</sup> In these studies, the magnitude of the impact of the crisis varies greatly across households and countries, depending on many characteristics including the degree of price transmission, dependence on food imports, whether staple foods are traded internationally, and overall levels of productivity.<sup>6</sup> But the general finding is similar – national poverty rates increase, with urban areas on average suffering larger increases.

From these studies though, it is difficult to disentangle the extent to which the simulated estimates result from actual changes in household behavior and wellbeing, or from the simulation assumptions. For example, Woden _et al._ (2008) assume that increases in food prices directly produce an equivalent reduction in total consumption. That is, the household is assumed to have no behavioral response to the price increase. In this case, the magnitude of the poverty reduction is determined by the shape of the distribution of consumption and the assumed reduction in total consumption.

The need to simulate welfare effects is driven by a lack of comparable pre- and postcrisis data. Jensen and Miller (2008) improve upon the simulation studies by using a panel of 1,300 urban poor households in two Chinese provinces to measure the nutritional effects of the crisis. The data in their analysis though are from April and December, 2006, and largely do not reflect the stark increase in the price of staples during the crisis.<sup>7</sup> They find a limited nutritional impact of the crisis, as measured by calorie intake, which they suggest is due to government policies that stabilized grain prices and household substitution towards cheaper foods.

The analysis in this paper is similar to Jensen and Miller (2008) in that the estimates are based on measured (not simulated) differences in consumption behavior. While we
|
|Members < 14|1.93|1.92|1.93|0.24|
|members 14-60|3.97|4.04|3.95|1.15|
|Members > 60|0.42|0.40|0.43|1.35|
|Head's years of education|4.92|5.00|4.89|0.65|
|Head completed primary|0.51|0.51|0.51|0.17|
|<br>Head completed middle school|0.31|0.31|0.31|0.16|
|Head's age|49.50|48.97|49.70|1.53|
|<br>Female head|0.05|0.06|0.05|1.3|
|Area of cropland(acres)|2.75|2.78|2.74|0.21|
|Value of physical assets (Rs.)|43127|41358|43810|0.9|
|Value of total assets (Rs.)|52564|51829|52848|0.34|
|Household total income (Rs.)|15549|15380|15615|0.21|
|<br>Share of crop income|0.52|0.53|0.52|0.44|
|Share of agriculture|0.67|0.68|0.66|1.22|
|Share of off-farm income (Rs.)|0.32|0.31|0.33|1.18|
|<br>Household total expenditure (Rs.)|37769|37807|37755|0.04|
|Household consumption (Rs.)|9274|9367|9239|0.45|
|No. of observations|4,275|1
by completely reengineering tax administration, improving taxpayer service, and facilitating compliance. PricewaterhouseCoopers (2010) presented mandatory e- invoicing as one of the alternative VAT collection methods to the European Commission indicating that under this model “tax authorities gain access to information on sales transactions at a very early stage, i.e. at the time the invoice is issued.”

# **3. Study Objectives and Scope**

This paper presumes Korea’s success with electronic tax invoice and the accompanying early warning system—one of the most effective electronic tax administration tools in Korea—as a holistic approach that harmonizes the institutional and legislative approach and the normative and cognitive approach in effectively raising tax compliance.

The introduction of ETI is a _prima facie_ institutional and legislative approach. However, ETI not only launches a new institutional reform, but also enhance taxpayer service and trust by facilitating taxpayer compliance. ETI gives a tax authority an instant access to transaction data just as an invoice is issued (PricewaterhouseCoopers, 2010), generating a more powerful effect on tax compliance than paper-based invoice. The instant access to and processing of digital information by tax authorities increase taxpayer’s vigilance on an audit possibility and hence reduce noncompliance in VAT filings and input tax refund claims. ETI also contributes to reducing taxpayer costs that are incurred in selling and purchasing, invoicing, making payments and settlements, and filing VAT with increased transaction efficiency and accuracy. Tax authorities can also lower substantial cost and time related to VAT filings and refund claims while improving taxpayer service by reallocating the savings to the more valuable core service areas. Such changes would eventually contribute to VAT compliance. Therefore, this paper reviews Korea’s ETI under the broad assumption that ETI enhances tax compliance through both institutional and normative changes. Although this paper does not conduct quantitative causal analyses to examine the effects of ETI on tax compliance, it provides a descriptive analysis by utilizing various sources including studies, materials, and information regarding Korea’s ETI introduction, statistical data provided by the National