rafmacalaba/datause-encoder-data huggingface dataset:
Figure 2 displays the total amount of loans taken by treatment for each of our four treatments where loans are available. Loans are expressed as percentage of endowments to account for differing endowment levels in the inequality treatments. The highest amount of loan taking is recorded in the baseline condition (endowments are equal, and expenditure is not observable), while the lowest is found in the treatment where endowments are unequal, and expenditure is not observable. Comparing loan-taking in these two treatments, it is clear to see that the house money effect is clearly at play here. Loans are far less prevalent when subjects earn their endowments, relative to when subjects are given equal endowments ( _p<0.01_ ).

Importantly, however, as with expenditures, observability reduces loan-taking when endowments are equal ( _p<0.05_ ), but increases loan-taking when endowments are unequal, and effort based ( _p<0.05_ ). In other words, a cursory look at the graph reveals that when consumption can signal ability, subjects are more likely to take on loans to front load consumption.

<!-- Start of picture text --> Loans taken (% of endowment)<br>30%<br>25%<br>20%<br>15%<br>10%<br>5%<br>0%<br>Equal (unearned) endowment Unequal (earned) endowment<br>Expenditure is NOT observable Expenditure is observable<br>Loans token (% of endowment)<br><!-- End of picture text -->

**Figure 2: Loans taken by treatment**

Note: The error bars reflect the standard error of the mean. The figure reports data from the treatments with loans.

As with expenditures, we use a simple OLS framework with the dependent variable as the total tokens taken in loans by the subject, expressed as a percentage of their total endowment. Specifically, we test the hypothesis that observability increases loan-taking when consumption signals ability, relative to when consumption carries no such signal. We control for self-reported consumption, financial IQ, competitiveness, and state of personal finances (Model 2), the Cognitive Reflection Test, and clarity of instructions (Model 3), and finally, gender and age (Model 4).

16
happened in the 1980s, while from the nineties onwards few improvements have been achieved.

**Figure 7: Institutional quality**

<!-- Start of picture text --> 6.9 6.9<br>6.2<br>5.9 6.0<br>5.2<br>4.7<br>3.8<br>3.4 3.5<br>3.0<br>2.8 2.6<br>2.4<br>2.2<br>NON-OECD NON-EAP OECD EAP NON-OECD<br>1961-70 1971-80 1981-90 1991-00 2001-05<br>Sources: author’s calculations using Polity IV (2004) data. The<br>variable is the unweighted average for the region.<br>Executive Constraint Index<br><!-- End of picture text -->

# **Increased Sophistication and Depth of Financial Markets**

More sophisticated and developed financial markets improve the economy’s capability to reallocate resources where needed in case of shocks, and therefore dampen output growth volatility. More developed financial markets also have a direct beneficial effect on consumers by allowing greater smoothing of consumption. Figure 8 presents a scatter plot of output growth volatility versus financial depth, measured as the ratio of private sector domestic credit to GDP. It shows a clear relationship between the depth of financial markets, and output growth volatility. Using more sophisticated econometric techniques, Loayza and Raddatz (2006), among others, find that domestic financial depth has an important role in stabilizing the economy, and can reduce the impact of shocks by up to 1.5 percentage points.

Financial markets have significantly deepened in both OECD and developing countries, and East Asia followed the trend (Figure 9). In non-OECD East Asia, domestic credit as a percentage of GDP rose from less than 50 percent in the 1970s to more than 100 in 2006, and now stands significantly higher than in other non-OECD countries. Improvements have however been heterogeneous, with some countries developing their financial markets at a much higher pace than others.

12
employment needs as the basis for decisions on enrollments by specialty in a given school. Both formal (labor surveys) and informal (conferences) methods are used to establish manpower needs. These decisions are referred to the provincial education bureau, which consolidates and forwards them to the State Education Commission.

The two main streams of enrollment information -- through the Ministry of Labor and Personnel and the State Education Commission -- are in turn directed to the State Planning Commission. At this level, only total enrollment by type of schools is considered. Approval is said to be more or less routine, and is transmitted back to the schools via the channels through which information arrived.

Both STS and SVS can increase quotas for a given specialty, if requested to do so by an enterprise which is willing to pay the costs of additional training. This requires the approval of the provincial Labor and Personnel Bureau or Education Bureau, respectively. Above-quota training of this sort occurs regularly, and provides an important element of flexibility in meeting local manpower needs outside the formal planning process. SWS also train on contract for other enterprises, but the process seems much more integrated into annual enrollment planning and quotas.

A principal reason for the differences between the SWS and STS on the one hand, and the SVS on the other, lies in the labor assignment process. Students in the SWS and the STS are guaranteed placement by the owning enterprise if they graduate. Since 991 do, admission to either of these types of schools is a decision for employment. In the SVS, however, there is no formal assignment process although, as will be discussed, informal mechanisms in the better schools appear to lead to very high placement rates.

The systems for testing and admission to schools also differ. For the SWS, a nationwide entrance examination is prepared by the Ministry of Labor and Personnel Bureaus (except in Beijing, Shanghai, and Tientsin, which create and administer their own examinations). Students select the specialty in which they wish to enroll before taking the examination. Students are then assigned to schools by the provincial Labor and Personnel Bureau on the basis of their examination marks and specialty selected, until enrollment quotas are filled. Graduates are eventually assigned to jobs b, enterprises or by municipal or provincial Labor and Personnel Bureaus, depending on who runs the school directly.

STS apply directly to the Higher Education Bureau for students by specialty based on received enrollment quotas. The Higher Education Bureau administers a national entrance examination prepared by State Education Commission. Students select a specialty before taking the test. A Higher Education Recruitment Commission uses examination scores and student selected specialties to assign students to schools. This Commission is chaired by the Provincial Governor, and includes representatives from the higher education and Labor and

- 28 -
of reform in this area consist of the removal of restrictions to obtain commercial credits and consumer loans, to issue corporate bonds, and to provide and receive credit guarantees in domestic and international markets, regardless of the country of residence. The most comprehensive and authoritative cross-country database on policy indicators of international financial reform is the _Annual Report on Exchange Arrangements and Exchange Restrictions,_ prepared and published by the International Monetary Fund. Its main drawback is that, in most instances, the indicators are binary (i.e., yes/no type) and, thus, do not represent accurately the actual extent of liberalization.

The measures of prudential control and regulation are more difficult to assess. A general indicator is whether the country has adopted international standards for banking and capital-market disclosure of information, asset capitalization, and reserve requirements. Beyond that, it is unclear whether additional regulations actually correct market failures (as reflected in “herd” behavior, program trading, and purely speculative attacks) or, rather, create unnecessary obstacles to financial integration. An argument could be made in favor of capital controls that discourage destabilizing short-term flows, such as those implemented in Chile for most of the 1990s (see Gallego, Hernández, and Schmidt-Hebbel 2002 for an authoritative evaluation of capital controls in Chile). However, it seems that in order to reduce the potential negative effects of external financial integration, it is more important to eliminate potential arbitrage opportunities derived from macroeconomic disequilibria (particular, real exchange rate misalignment), and eradicate implicit insurance and subsidies that induce speculative behavior (such as unsustainably low domestic interest rates). Creative indicators could be derived from policy changes in this regard.

**_3. Outcome indicators._** The main outcome indicators of reform in international financial markets can be grouped in the following categories.  The first one corresponds to the effect on the domestic financial system.  The second considers the quantities and prices of cross-border services and flows.  The third category comprises indicators of external vulnerability.

Market-oriented reform in international financial markets should have effects on the domestic financial system that are akin to those of domestic financial reform. That is, there should be an increase in the volume of private financial assets and a decrease in the 13
<!-- Start of picture text --> Cost of increasing the RAI by 1% for BLZ Cost of increasing the RAI by 1% for LAO<br>70 e e<br>400<br>60 350 ‘<br>— 0 — 300<br>cc<br>22<br>= e = 250<br>— 40 . E e<br>/z ee e 200<br>% 30 . * ° Fi<br>oO o e e<br>20 e e 9% e * 150 ° A<br>e e 100 e<br>104¢@ ° ° =<br>ee e@ e 50 e<br>30 35 40 45 50 35 40 45 50<br>RAI (%) RAI (%)<br>Cost of increasing the RAI by 1% for PAN Cost of increasing the RAI by 1% for SLE<br>e<br>120 °<br>200 e<br>e<br>100 e<br><!-- End of picture text --> <!-- Start of picture text --> eS = 150 e<br>==So 8 ee ==So oe ee<br>E E<br>Pvtwr wr e A<br>3 = 100 oS,<br>oO 60 %e og e “e<br>° °<br>20, eo e a<br>40 ° ° 50 e<br>e e e<br>246 ° 0 °<br>25.0 27.5 30.0 325 35.0 37.5 30 40 50 60 70<br>RAI (%) RAI (%)<br><!-- End of picture text -->
Figure 24: Evolution of Consumer Financing by Provider (2000Q1-2005Q3) <!-- Start of picture text --> 3.5% 0.2%<br>0.2%<br>3.0% 0.4%<br>2.5%<br>2.0%<br>1.5%<br>2.7%<br>1.0% 0.1%<br>0.1%<br>0.5% 0.1%<br>0.5%<br>0.0%<br>1Q00 3Q05<br>Com Banks Sofoles SAPS Non-performing<br>% of GDP<br><!-- End of picture text --> Figure 25: Composition of Banks’ Consumer Loans (September 2005) <!-- Start of picture text --> Other<br>16%<br>Credit<br>cards<br>56%<br>Durable<br>goods<br>28%<br><!-- End of picture text -->

# Source: BOM and CNBV.

Note: Consumer credit in the form of asset-backed securities is excluded from the analysis due to lack of data, but it is very small in size. The Figure showing the composition of banks’ consumer loans is based on CNBV data and excludes any restructured consumer loans.

The strong growth in consumer lending has been driven by a combination of demandand supply-side factors. On the demand side, significantly under-leveraged households at the beginning of the period led to a consumer lending boom that has encouraged growth in private consumption, which has been a key component of Mexico’s economic growth in recent years. On the supply side, product innovation and the introduction of new lending technologies (e.g. automated credit scoring, mass distribution channels, electronic lending platforms) by banks – supported by the entry of foreign financial institutions with relevant experience – has facilitated this process. Good macroeconomic performance combined with increased bank soundness and competition enabled the introduction of innovative products with lower and/or fixed interest rates such as “ _créditos a la nomina_ ” (salary-linked loans) and consumer durables financing on flexible repayment terms. Finally, the entrance of new credit providers (especially Sofoles) strengthened the supply of credit in specific niches such as auto loans.

The existence and extensive use of the credit bureau has been an essential ingredient for the successful take-off of this market. The only credit information sharing mechanism until the early 1990’s was the public credit registry (“ _Servicio Nacional de Información de Crédito Bancario_ ” or SENICREB) operated by BOM, but its use in supporting credit decisions was limited given its original purpose of producing statistics. A few private credit bureaus subsequently entered the market but a shakedown in the late 1990’s led to the emergence of one dominant entity ( _Buró de Crédito_ ) that is owned by financial and non-financial institutions<sup>34</sup> . The enactment of a law in 2002 (amended in 2003) to regulate their activities and protect privacy rights, as well as of supporting prudential

> 34 _Buró de Crédito_ operates as two firms: one in association with TransUnion (for individuals) and the other one with Dun & Bradstreet (for companies). Mexican commercial banks as a group own around 70 percent of the shares, with the largest individual stake being 18 percent. A second private credit bureau ( _Circulo de Crédito_ ) has recently entered the market.

26
**Table A.3: Distribution of household types, RLMS 1994-2017**

|**No of adults**|**No of children**|**Share of sample (%)**|
|---|---|---|
|_1_|_0_|9.36|
|_1_|_1_|1.18|
|_1_|_2_|0.29|
|_1_|_3_|0.03|
|_2_|_0_|23.99|
|_2_|_1_|12.07|
|_2_|_2_|6.01|
|_2_|_3_|0.81|
|_3_|_0_|15.24|
|_3_|_1_|8.54|
|_3_|_2_|2.47|
|_3_|_3_|0.42|
|_4_|_0_|7.60|
|_4_|_1_|4.52|
|_4_|_2_|1.64|
|_4_|_3_|0.34|
|_5_|_0_|2.57|
|_5_|_1_|1.94|
|_5_|_2_|0.75|
|_5_|_3_|0.22|
|**_Total_**||**_100_**|
|**_Number of_**|**_observations_**|**_260,133_**|

_Note_ : data are unweighted 38
-4-

**Table 2**

**Chile: Distributive and Social Indicators**

||Real Wage;<br>(index)|Real Minimum Wages<br>(index)<br>percentages|<br>Unem<br>(1)|ploymen<br>(2)|t<br>rate<br>|Gini<br>Real<br>coeff. Wages<br>constr.|
|---|---|---|---|---|---|---|
|1981|100.0|100.0|10.4|15.1|52|<br>100.0|
|1982|99.9|101.0|19.6|26.1|54|<br>94.9|
|1983|89.0|81.0|18.7|31.4|54|<br>71.0|
|1984|89.0|70.0|15.9|24.0|55|<br>61.4|
|1985|8Z,^0|66.0|16.0|24.2||51.5|
|1986|87.0|64.0|13.9|19.1||47.8|
|1987|87.0|60.0|12.6|15.8||46.9|
|1988|9 .0|63.0|10.2||||

Source Cepal (1989), Arellano (1988), Larrain (1989), Solimano (1988) (.) open unemployment rate. (2) open urnemployment rate plus emergency employment programs.

TRbles 1 and 2 suggest some important features of the cur:ent macroeconomic and social situation that may be important for shaping the growth possibilities of the Chilean Economy.

:.) After five years in which the Chilean economy has been growing at an average rate of 5.5Z per year, (1984 -1988), with a fairly low investment rate (15.2Z of GDP on average), the question arises on the feasibility of sustaining those rates of growth over the medium term without a major increase in investment. In particular when the margins of unused capacity are narrow **as it** seems to be the case by the late eighties (see the second column in Table 1, and
- 27 -

# **OECD**

**The** Development Cooperation Directorate, which serves as the Secretariat for the Development Assistance Committee of OECD, routinely maintains bilateral donor statistics according to the format for its Creditor Reporting System. A special health format requested of all DAC countries contains 11 general categories and 28 subcategories of health data. Although mother and child care is one of the subcategories, the classification system does not readily identify specific maternal health components. The data would have to be analyzed by each donor according to the share of maternal care in each subcategory. **The** Creditor Reporting System has other limitations:

- There is substantial variation in the response by each donor. Data is not always prepared by the health representatives of each donor organization.

- The system does not specifically identify health sector commitments by agencies, institutions, and funds in the United Nations family, for example, UNICEF, UNFPA. and WHO.

- Financial data represent project investments and may exclude the cost. of technical cooperation by donors (technical advisory personnel) that constitute a major component of health assistance by a number of donors.

- e eData in the DAC chairman's annual report are limited to a total annual figure for bilateral health investments. although more detailed data are provided to DAC.

- DAC collects gross data on donor contributions to NGOs, but not data on the sectoral distribution of NGO contributions. This omission means that a major financial resource for health is not identifiable.

- Since DAC does not collect health sector data from major multilateral sources, annual data do not permit estimates of global sectoral flows. Gross development flows, however, do include major bilateral and multilateral sources.

For special DAC meetings such as the September 1988 meeting on Primary Health Care, DAC does attempt to gather information by questionnaire. However, it has proved difficult to obtain a response from all major DAC major countries.

DAC Secretariat attention io health sector financing is dependent primarily on requests from member countries, an approach in which there is currently only limited official interest.

Secretariat staff note that tne number of technical and professional health personnel in donor agencies is limited. In recipient countries, resident technical staff members are primarily associated with approved projects, although some resident health representatives also are responsible for assisting governments in the preparation of proposals. In this sense the limited number of professional health sector personnel both at headquarters and at the field level may not be competitive with larger staff resources available to other development sectors such as agriculture and industry.

Organization for Economic Cooperation and Development (OECD) 2 rue Andre Pascal _75775_ Paris Cedex 16, France
Note: This figure presents the frequency and coverage ratios for all Central American countries. Only SPS and TBT measures are considered.

Source: Authors’ computation.

Table 3 displays the coverage and frequency ratios for SPS regulations and TBT regulations separately. SPS regulations affect between 13.6% and 17.4% of products and cover not more than 22% of import value in the region. There is wider variation in the use of TBT, with only 5% of product lines imported to Honduras covered by a TBT regulation compared to 28.2% of goods imported to El Salvador. For each of the countries, the coverage ratio for TBT regulations is significantly larger than the frequency ratio (2.9 times bigger in the case of Nicaragua). This suggests that these countries import large volumes of products from sectors that use TBTs more extensively.

**<u>Table 3. Frequency and Coverage Ratios by Type of NTM</u>**

|**NTM Chapter**|FR<br>**Costa**|CR<br>**Rica **|FR<br> **El Sal**|CR<br>**vador**|FR<br>**Guate**|CR<br>**mala**|FR<br>**Hond**|CR<br>**uras**|FR<br>**Nicar**|CR<br>**agua**|
|---|---|---|---|---|---|---|---|---|---|---|
|A. Sanitary and Phytosanitary Measures (SPS)|17.4|16.2|15.7|21.6|16.2<br>|19.4|14.5|16.1|13.6|16.6|
|B. Technical Barriers to Trade (TBT)|14.4|25.9|28.2|42.3|21.0|40.4|5.0|7.9|8.7|25.0|

Note: This table shows the frequency and coverage ratios by type of NTM in each country in the Central American region. These indicators are computed for all active product lines (6-digit HS codes). Source: Authors’ computation Analyzing in more detail the type of NTMs in effect in each country provides more information about the nature of trade legislation in the Central American region. Table 4 reports coverage ratios for SPS and TBT measures across economic sectors in each of the five countries under analysis. Each cell represents the import value affected by at least one type of NTM as a share of total sectoral import value. This analysis reveals that SPS measures are primarily concentrated in animal, vegetable, and foodstuff sectors, while TBTs are especially prevalent in trade in animals and chemical goods, but are also used intensively in the vegetable and foodstuffs sectors. These two results are comparable with international practices.

12
- 33 -

across different sectors in the economy. It was also suggested that nonneutralities in the persoinal income tax that arise from asset acquisition should be reduced by repealing the incentives for investing in housing over investing in other types of assets. Finally, a few changes in the personal income tax were recommended to broaden the base and ensure greater fairness.

# 6. Tax Administration

48. On -the whole, tax administration in Malawi, as exercised by the Department of Customs and Excises and the Department of Income Tax, was highly regarded by the tax study team. However, major weaknesses were identified in the area of generating and utilizing information on taxpayers and their tax payments. To overcome these deficiencies and thus improve management, the study made several recommendations. The most important of these was that the information system should be redesigned. In particular, it was recommended that a document control system be introduced and that data should be organized in such a way as to allow for the identification of trends and patterns in, for example, receipts, arrears and the settlement of delinquencies. This would increase the ease and speed with which management would be able to analyze changing conditions and to react to them appropriately.

49. Toward this end, it was recommended that a master tax file be created with numbers that uniquely identified all individual and company taxpayers. The master tax file would facilitate the cross checking of sales and income tax records (subject to confidentiality rules) and would provide an up to date account of any taxpayer as well as of the performance of the entire tax system. The size of the tax base could also be expanded if the possession of a taxpayer identification number were to become a