rafmacalaba/datause-encoder-data huggingface dataset:
Fiscal policy, public expenditure
            composition, and growth theory and empirics
This paper responds to the development
            policy debate involving the World Bank and the IMF on the
            use of fiscal policy not only for economic stabilization but
            also to promote economic growth and increase per capita
            income. A key issue in this debate relates to the effect of
            the composition of public expenditure on economic growth.
            Policy makers and some researchers have argued that
            expenditure on growth-enhancing functions could enhance
            future revenue and justify the provision of "fiscal
            space" in the budget. But there are no simple ways to
            identify the growth-maximizing composition of public
            expenditure. The current paper lays out a research strategy
            to explore the effects of fiscal policy, including the
            composition of public expenditure, on economic growth, using
            a time series approach. Based on the modeling strategy of
            Greiner, Semmler and Gong (2005) we develop a general model
            that features a government that undertakes public
            expenditure on (a) education and health facilities which
            enhance human capital, (b) public infrastructure such as
            roads and bridges necessary for market activity, (c) public
            administration to support government functions, (d)
            transfers and public consumption facilities, and (e) debt
            service. The proposed model is numerically solved,
            calibrated and the impact of the composition of public
            expenditure on the long-run per capita income explored for
            low-, lower-middle- and upper-middle-income countries.
            Policy implications and practical policy rules are spelled
            out, the extension to an estimable model indicated, a debt
            sustainability test proposed, and the out-of-steady-state
            dynamics studied.
Bank privatization in Sub-Saharan
            Africa : the case of Uganda commercial bank
Previous empirical analyses have found
            that bank privatizations are more successful when the
            government fully relinquishes control, when the bank is
            privatized to a strategic investor, and when foreign-owned
            banks are allowed to participate in the bidding.  The
            privatization of Uganda Commercial Bank (UCB) to the South
            African bank Stanbic met all these criteria, suggesting that
            it is a likely candidate for success.  But other features
            suggest reasons for caution:  UCB dominated the Ugandan
            banking sector prior to privatization and the institutional
            environment in Uganda was less favorable than in many of the
            middle-income countries looked at in earlier empirical
            studies.  Despite these concerns, the privatization appears
            to have been relatively successful.  The portfolio of the
            privatized bank, which was cleaned prior to sale, remains
            relatively strong and profitability and credit growth are
            now on par with other Ugandan banks.  Though market
            segmentation remains a concern since Stanbic faces little or
            no direct competition in many remote areas, some early
            results suggest that access to credit has improved for some
            hard-to-serve groups.
Reducing the transaction costs of
            development assistance Ghana's multi-donor budget
            support (MDBS) experience from 2003 to 2007
This paper examines whether the
            structure of the Multi-Donor Budget Support (MDBS) in Ghana
            evolved over time to minimize transaction costs commonly
            found in accessing and delivering development assistance in
            multi-donor settings.  While the MDBS was expected to reduce
            the transaction costs involved in dealing with multiple
            development agencies, it created three additional sources of
            transaction costs: coordination failures, the costs of
            collective action, and measurement costs. The answer that
            emerges from this paper is that the structure of the MDBS
            evolved to mitigate these transaction costs. The problems
            associated with coordination was addressed by delegating the
            policy dialogue to sector-specific groups aimed at reaching
            agreements over a narrower set of issues and amongst a
            smaller group of participants.  Also, the MDBS reduced the
            cost of collective action by devising rules that allowed all
            the participating agencies to have a role in the
            decision-making process, and, in doing so, encouraged these
            agencies to increase the share of their contribution coming
            through the MDBS, rather than through large projects and
            off-budget disbursements. There was less success in reaching
            a settled view on how to reduce so-called measurement costs,
            however.  While the group of development agencies made
            several attempts to overcome the difficulties in measuring
            progress in the program supported by the MDBS, it was not
            able to reach consensus on the extent to which the
            monitoring of the program should rely on outcome indicators.
            The Government did not favor the use of outcome indicators,
            and some development agencies placed greater emphasis on
            maintaining a dialogue around policy actions aimed at
            reaching the desired outcomes.
Cote d'ivoire volatility,
            shocks and growth
Key economic variables in Cote
            d'Ivoire vary widely from their long-run trends, moving
            in multi-year cyclical patterns.  Cocoa prices move with
            cycles in growth rates, capital stock, real exchange rates,
            terms of trade, cocoa production, and coffee production and
            output. These patterns have become more pronounced since the
            1970s as volatility increased. This paper characterize these
            cycles, estimates the cocoa price-quantity relationship, and
            analyzes co-movements due to shocks generate a forecast.
            Three key conclusions follow. First, the economy of Cote
            d'Ivoire has experienced two fundamental transitions,
            one in 1976 related to cocoa, and another in 1994 related to
            exchange rates. From 1960 to 1976, world cocoa prices grew
            steadily, and then fell in real terms. The country's
            growth showed a similar pattern. An econometric model
            indicates that the relationship between cocoa price and
            quantity experienced a break in 1976 and provides evidence
            of Cote d'Ivoire's significant influence on world
            cocoa prices. Second, cocoa price shocks affect growth rates
            and trade indicators, and are important sources of
            volatility in the Cote d'Ivoire. The terms of trade and
            real exchange rate are also sources of volatility for growth
            and productivity.  Third, a forecast of per-worker output
            based on these variables predicts continued declines in GDP
            per worker in Cote d'Ivoire for the near future.  This
            dismal forecast implies the need for a radical and rapid
            improvement on political, security, and economic management
            to reverse the two and a half decades of economic decline.
Cote d'ivoire volatility,
            shocks and growth
WPS4415 Policy ReseaRch WoRking PaPeR 4415

# Cote d’Ivoire:

Volatility, Shocks and Growth _Zeljko Bogetic Carlos Espina John Noer_ The World Bank Africa Poverty Reduction & Economic Management Department Poverty Reduction & Economic Management Unit 4 November 2007
Early development economics debates revisited
Development economics in its early years
            created the image of a fierce fight between advocates of
            contrasting theories or approaches- "balanced
            growth" vs. "unbalanced growth" or
            "program loans" vs. "project loans."
            This view has the merit to highlight such conflicts in great
            detail; yet it fails to take into account the reality of
            development economics as it was practiced in the field. This
            paper reassesses these old conflicts by complementing the
            traditional focus on theoretical debates with an emphasis on
            the practice of development economics.A particularly
            interesting example is the debate between Albert Hirschman,
            one of the fathers of the "unbalanced growth"
            approach, and Lauchlin Currie, among the advocates of
            "balanced growth" on how to foster iron production
            in Colombia in the 1950s. An analysis of the positions held
            by these two economists shows that they were in fact much
            less antithetical than is usually held and, indeed, were in
            some fundamental aspects surprisingly similar. Debates among
            development economists during the 1950s thus must be
            explained-at least partially-as the natural dynamics of an
            emerging discipline that took shape when different groups
            tried to achieve supremacy-or  at least legitimacy-through
            the creation of mutually delegitimizing systemic theories.
Is Accra a superstar city
A recent study of house price behavior
            in U.S. cities by Gyourko, Mayer, and Sinai (2006) raises
            questions about so-called superstar cities in which housing
            is so inelastically supplied that it becomes unaffordable,
            as higher-income families outbid residents.  We consider the
            case of Accra, Ghana, in this light, estimating the
            elasticity of housing supply and discussing the implications
            for growth and income distribution. There is not a great
            deal of data available to examine trends in Accra, so our
            method is indirect.  First, we use a variant of the
            traditional monocentric city model to calculate the
            elasticity of Accra's housing supply relative to those
            of other similarly-sized African cities.  This suggests that
            housing supply responsiveness is much higher elsewhere.
            This muted supply responsiveness is consistent with the
            observed higher housing prices.  Second, we estimate a
            number of traditional housing demand equations and reduced
            form equations.  Placing a number of restrictions on the
            equations allows us to infer Accra's housing supply
            elasticity. Taken together, our approaches suggest that
            lower-income families in Accra have such poor housing
            conditions because the market is extremely unresponsive to
            demand.  Although the outcomes we have traced-high housing
            prices and low quality-are not unusual relative to the other
            developed country superstar cities, they are extreme.  The
            welfare costs are considerable, so much so that in addition
            to direct housing market effects, these policies also appear
            to have potentially significant implications for the
            achievement of more equitable growth.
On the measurement of
            market-oriented reforms
This paper presents policy- and
            outcome-based ways of measuring the progress of
            market-oriented reforms in both traditional areas of
            first-generation reform and the areas of institutional
            reform that have been emphasized lately. These policy areas
            are the domestic financial system; international financial
            markets; international trade; the labor market; the tax
            system; public infrastructure and public firms; the legal
            and regulatory framework; and governance. For each of them,
            first, we discuss the general principles underlying
            market-oriented reform; second, we present various
            indicators of the policy stance in the area in question; and
            third, we present various outcome indicators of the policy stance.
Knowledge and development : a
            cross-section approach
This paper assesses the effects of
            knowledge on economic growth. By using an array of
            indicators, each of which represents an aspect of knowledge,
            as independent variables in cross-section regressions that
            span 92 countries for the period 1960 to 2000, they show
            that knowledge is a significant determinant of long-term
            economic growth. In particular, the authors find that the
            stock of human capital, the level of domestic innovation and
            technological adaptation, and the level of information and
            communications technologies (ICT) infrastructure all exert
            statistically significant positive effects on long-term
            economic growth. More specifically with regard to the growth
            effects of the human capital stock, they find that an
            increase of 20 percent in the average years of schooling of
            a population tends to increase the average annual economic
            growth by 0.15 percentage point. In terms of innovation, the
            authors find that a 20 percent increase in the annual number
            of USPTO patents granted is associated with an increase of
            3.8 percentage points in annual economic growth. Lastly,
            when the ICT infrastructure, measured by the number of
            telephones per 1,000 persons, is increased by 20 percent,
            they find that annual economic growth tends to increase by
            0.11 percentage point.
A survey of securities laws and enforcement
The author examines the theoretical and
            empirical literature pertaining to securities laws and their
            enforcement by regulators and courts to establish what is
            known and what is yet unclear. Recent empirical research in
            the field has established that law matters. Mandatory
            disclosure requirements, insider trading laws, safeguards
            against self-dealing transactions, adequate regulatory
            powers, and simple laws that are easily enforced aid in the
            development of capital markets. The debate is now focused on
            identifying which components of securities laws matter most
            and on what the optimal regulatory framework for each
            country should be. Although public enforcement of securities
            laws is important, the author finds that the largest impact
            comes from aspects of the law that facilitate private
            enforcement. This means that the development of capital
            markets depends crucially on creating laws that facilitate
            enforcement and improving court procedures that allow for a
            more efficient dispute resolution.
The Corporate Governance of Banks -
            a concise discussion of concepts and evidence
The author examines the corporate
            governance of banks. When banks efficiently mobilize and
            allocate funds, this lowers the cost of capital to firms,
            boosts capital formation, and stimulates productivity
            growth. So, weak governance of banks reverberates throughout
            the economy with negative ramifications for economic
            development. After reviewing the major governance concepts
            for corporations in general, the author discusses two
            special attributes of banks that make them special in
            practice: greater opaqueness than other industries and
            greater government regulation. These attributes weaken many
            traditional governance mechanisms. Next, he reviews emerging
            evidence on which government policies enhance the governance
            of banks and draws tentative policy lessons. In sum,
            existing work suggests that it is important to strengthen
            the ability and incentives of private investors to exert
            governance over banks rather than to rely excessively on
            government regulators. These conclusions, however, are
            particularly tentative because more research is needed on
            how legal, regulatory, and supervisory policies influence
            the governance of banks.
International economic activities
            and the demand for skilled labor: evidence from Brazil and China
Increases in international economic
            integration can lead to greater specialization according to
            comparative advantage, but also to the diffusion of
            skill-biased technologies. In developing countries
            characterized by relative abundance of unskilled labor,
            these factors can have opposite effects on the relative
            demand for skilled labor. This paper investigates the impact
            of the use of imported inputs, exports and foreign direct
            investment on the demand for skilled workers of Brazilian
            and Chinese manufacturing plants. We find that while in
            Brazil increased levels of international integration are
            associated with an increased demand for skilled labor, the
            opposite is true in China.
The transactions costs of primary
            market issuance : the case of Brazil, Chile, and Mexico
The author documents the precise costs
            of debt and equity issuance, both domestically and
            internationally, for firms in Brazil, Chile, and Mexico.
            Costs include investment banking and legal fees, regulatory
            and exchange listing costs, rating agency fees, and
            expenditures for marketing and publishing. Her findings
            suggest that Brazilian firms face similar costs in issuing
            debt locally or abroad, whereas domestic equity issuance is
            nearly twice as expensive as debt. While the Chilean
            domestic corporate debt market is well developed by emerging
            market standards (size of the market and maturity of
            issues), Chilean firms can issue debt more cheaply
            internationally than at home. In addition, while equity
            financing is cheaper in Chile from a transaction cost
            perspective, over the past decade most firms have used bonds
            rather than shares to raise capital. This financing trend is
            true in all three countries. Finally, Mexican firms can
            issue debt at the lowest costs of the three, but face the
            highest equity issuing costs. In addition to documenting
            these features, the author sheds light on how the investor
            base in these countries plays a strong role in influencing
            the ability of firms to access domestic capital markets.
Approaches to results-based funding
            in tertiary education : identifying finance reform options
            for Chile
Unrealized potential exists for
            increasing accountability and transparency in Chilean
            tertiary education by allocating resources based on achieved
            results rather than historical precedence and political
            negotiation. Against this background, the authors profile
            approaches to results-based funding of tertiary education to
            identify efficacious finance reform options for Chile.
            International experience shows that financing by results is
            not a ready-made concept, but a broad label that offers a
            menu of design options. To decipher results-based funding,
            the authors cover all phases in designing and implementing a
            results-based funding system and highlight strengths and
            weaknesses of concepts, such as taximeter funding,
            performance contracts, and formula-based allocations.
Approaches to results-based funding
            in tertiary education : identifying finance reform options
            for Chile
WPS3436

# **APPROACHES TO RESULTS-BASED FUNDING IN TERTIARY EDUCATION**

## **Identifying Finance Reform Options for Chile**

### **World Bank Latin American and Caribbean Region Department for Human Development**

### **Kristian Thorn, Lauritz Holm-Nielsen, and Jette Samuel Jeppesen**<sup>**1**</sup>

Abstract: _Unrealized potential exists for increasing accountability and transparency in Chilean tertiary education by allocating resources based on achieved results rather than historical precedence and political negotiation. Against this background, the paper profiles approaches to results-based funding of tertiary education to identify efficacious finance reform options for Chile. International experience shows that financing by results is not a ready-made concept, but a broad label that offers a menu of design options. To decipher results-based funding, the paper covers all phases in designing and implementing a results-based funding system and highlights strengths and weaknesses of concepts such as taximeter funding, performance contracts and formula-based allocations._

### World Bank Policy Research Working Paper 3436, October 2004

_The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or the countries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org._ 1 The authors wish to thank the following persons for their comments and suggestions: José Joaquín Brunner, Director of Education Program, Fundación Chile; Joseph Burke, Director of Higher Education, The Nelson A. Rockefeller Institute of Government; Eduardo Velez Bustillo, Education Sector Manager, Latin America and the Caribbean Region, World Bank; Eric Canton, Researcher, The Netherlands Bureau for Economic Policy Analysis; Jesko S. Hentschel, Country Sector Leader in Human Development for Argentina, Chile, Paraguay, and Uruguay, World Bank; Ricardo Reich, Director, Chile: Higher Education Quality Improvement Program (MECESUP), Ministry of Education; and Salvatore Schiavo-Campo, Senior Advisor for Governance and Public Management, World Bank.