rafmacalaba/datause-encoder-data huggingface dataset:
13 consumption), and with capacity mostly fixed, excess capacity tends to decline over time. It should therefore not come as a surprise that in mature, developed systems water losses should be relatively lower, whereas systems that have been built more recently and hence have significant excess capacity are likely to have relatively higher water losses as managing a system with large overcapacity tends to be complicated.

We also included a dummy for sewerage coverage. In general, utilities follow a pattern in which they first tend to provide water supply services to be followed by access to sewer services. In first instance, wastewater is collected. Afterwards, it will be treated to increasingly exacting standards. These increasing higher levels of sewer services tend to be linked to economic development. It is assumed that access to sewer services tend to complicate utility management as it increases the scope of services. The more complex the services are that are provided by the utility, the higher water losses will tend to be.

The second hypothesis is that utility management quality affects water losses. It is assumed that the better the quality of utility management, the lower water losses. The first variable that reflects management quality is the level of staff productivity (the number of staff per 1,000 people served as measured by LN_STAFFPROD). We assume that the higher the number of people of staff per 1,000 people served, or the lower the staff productivity, the higher the water losses.

Metering is often seen as key to reducing commercial water losses. Metering increases customer metering accuracy, improve meter reading and billing and assist in the detection of illegal water connections and water theft. We introduce a dummy for the presence of universal metering (FULLMETER). The assumption is that utilities with universal metering will show lower water losses than those that have not yet achieved that level of metering.

A third variable is the total revenues per capita per year (in US dollars) (LN_TOTREVPCAPUSD). The relationship is between the total revenues per capita per year (the result of household consumption volumes and tariffs charged) and NRW is more ambiguous. It is possible that high total revenues per capita per year result in more financial ability of the utility to pay for reduction in water losses. Yet, high total revenues per capita per year may also
<!-- Start of picture text --> 50 20<br>45 18<br>40 16<br>35 14 7o4s.‘s‘<br>;\<br>\<br>30 12 ¢ \<br>25 10 ‘ ween eel ~sL inte <2’inson So<br>mA<br>20 8 SA<br>15 6<br>10 4<br>5 2 ---Public Investment to GDP Ratio ——Private Investment to GDP Ratio<br>0 0 2000 2005 2010 2015<br>1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015<br>source: WDI. Code: NE.GDI.FTOT.2S Source: WDI. Codes: NE.GDI.FTOT.ZS, NE.GDI.FPRV.ZS<br><!-- End of picture text -->
insurance companies and pension funds hits a trough for bonds of ten year maturity (Panel B). In fact, insurance companies request 60% of the amount requested by pension funds of 20 year bonds and more than three times that of 30 year bonds.

The results in Table 2 show that pension funds bid for short-term instruments more aggressively than insurance companies; their relative bids weaken with the maturity of the bonds issued and even reverse for 30 year bonds. Moreover, the behavior of pension funds does not seem to be driven by low returns on long-term bonds. In fact, as shown below in Section 5.C, the long-term bonds yield substantial returns when compared to short-term ones.

Table 3 further exploits the auction data by analyzing the shares requested by each type of pension fund of inflation-indexed bonds (Panel A) and inflation-indexed, nominal peso, and dollars bonds (Panel B). The results show that even those funds with higher average maturity bid less aggressively for 30 year bonds than insurance companies. Therefore the results of Table 2 are not driven by the aggregation of all different types of funds and by the funds with lower average maturities.

To conclude, the evidence suggests that the short-termism of pension funds is not significantly constrained by the supply side of instruments. Pension funds seem to demand less heavily bonds with longer maturities and their demand seems to play an important role in their short-termism.

# **5.B. Rebalancing**

Mutual funds and pension funds might hold a large fraction of short-term assets for tactical purposes to respond opportunistically to shocks, rebalancing their portfolios and taking advantage of good buying opportunities. This is known as “cash-in-the21
# **7 References**

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- **Arias, Diego, Alejandro de la Fuente, Jesus Escamilla, and Charles Stutley** , “Insuring Resilience: Mexico Case Study,” 2014.

- **Barnett, Barry J. and Olivier Mahul** , “Weather Index Insurance for Agriculture and Rural Areas in Lower Income Countries,” _American Journal of Agricultural Economics_ , 2008, _89_ (5), 1241–47.

- **, Christopher B. Barrett, and Jerry R. Skees** , “Poverty Traps and Index-Based Risk Transfer Products,” _World Development_ , 2008, _36_ (10), 1766 – 1785. Special Section (pp. 20452102). The Volatility of Overseas Aid.

- **Calonico, Sebastian, Matias D Cattaneo, and Rocio Titiunik** , “Robust Nonparametric Confidence Intervals for Regression-Discontinuity Designs,” _Econometrica_ , 2014, _82_ (6), 2295– 2326.

- **, , and** , “Optimal Data-Driven Regression Discontinuity Plots,” _Journal of the American Statistical Association_ , 2015, _110_ (512), 1753–1769.

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- _88_ (910), 2193 2219.

15
constraints are likewise hampered productivity, as illustrated by the fact that managers in these enterprises have low educational attainment (Rothenberg et al., 2016). As a result of low productivity levels, informal enterprises typically pay low wages and are constrained to serving local markets (Rothenberg et al., 2016).

The empirical evidence has also examined factors influencing informal enterprises’ decision to formalize. One recurring theme based on qualitative interviews is obtaining access to credit. As obtaining credit presents a greater challenge in the informal sector (particularly for women), firms may find it more worthwhile to register their businesses only when they have plans to expand (Babbit et al., 2015; Rothenberg et al., 2016). In addition to accessing credit, workers’ skills may also determine whether they formalize or not. For example, the 2009 ISS revealed that the majority of workers in Banten entered the informal sector because it was the only work they knew (BPS & ADB, 2011). This could reflect a lack of information on, or access to, formal jobs. It could also reflect psychological or behavioral factors, such as preferring a known over an unknown option. These reasons may partly explain why interventions to encourage formalization have largely been unsuccessful. For example, Rothenberg and co-authors (2016) evaluated the effect of ‘one-stop shops’ aimed at streamlining applications for permits and other business licenses and found that the program did not have a significant effect on firms’ registration rates.

Despite advances in our understanding of the informal sector in Indonesia, important gaps remain. First, there is limited knowledge of the barriers or challenges faced by informal enterprises. With some exceptions, previous studies have typically relied on non-representative samples, which can limit the generalizability of findings. Second, empirical studies of Indonesia’s informal sector have adopted a strict dichotomy between formal and informal enterprises. The reality is much more complex as some enterprises start the registration process and fail to complete it, whereas others do not attempt to formalize at all (Rothenberg et al., 2016). This phenomenon of ‘incomplete formalization’ has not been adequately captured or documented in the empirical literature, largely due to the lack of appropriate measures. As Rothenberg et al.

14
Policy Research Working Paper 8316

# **Abstract**

Recurrent cyclonic storms in the Bay of Bengal inflict massive losses on the coastal regions of Bangladesh and India. Information on occurrences and severities of cyclones is necessary for understanding household and community responses to cyclone risks. This paper constructs a georeferenced panel database that can be used to obtain such information for Bangladesh, West Bengal, and Odisha. Cyclone strike locations and impact zones are analyzed for several historical periods between 1877 and 2016. The findings indicate that although the median location has shifted eastward, there is a marked variability in location, especially after 1960. Impacts also have varied considerably within and across zones over time, with the highest-impact zones in northern Odisha and the Sundarbans region of West Bengal. The pronounced spatial and temporal variation in cyclone impacts will provide robust controls for comparative research on household and community adaptation to cyclones in the study region. The methodology developed in the paper is general and could be expanded to an arbitrarily large set of coastal locations.

This paper is a product of the Environment and Energy Team, Development Research Group and the Environment and Natural Resources Global Practice Group. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://econ.worldbank.org. The authors may be contacted at sdasgupta@worldbank.org.

_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 views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent._ Produced by the Research Support Team
In a recent paper using U.S. Census data, Haltiwanger, Jarmin, and Miranda (2009) argue that there is no systematic relationship between firm size and growth once they control for firm age and find young businesses and startups to be critical for U.S. job creation. While this may be true of the U.S., we have little information on the importance of age versus size in other parts of the world, especially in developing economies, where there are greater barriers to entrepreneurship, and venture capital markets (very important for young firms in the U.S.) may not be so developed. Hence, below we investigate the access to finance statistics for young firms.

Table 8 presents data on access to finance for young establishments. In our sample of countries, the mean percentage of young firms below 2 years old that have access to a checking or saving account is 83.23% and median is 92.24%. If we were to use 5 years as the cut-off, the mean and median numbers are 85.06% and 90.21% respectively. Thus of the young firms in the population, a large proportion have access to bank accounts.

In the median country in our sample, 25.78% of firms less than two years old and 33.96% of firms less than five years old have access to an overdraft facility. The medians for access to lines of credit or loan from financial institutions are 23.58% for firms less than two years old and 33.97% for firms less than five years old. When we look across the low to high income groups in Figure 5, we do not find a monotonic increase for access to overdraft facility or line of credit. Instead, we find that the percentage of firms with access to overdraft facility and line of credit is significantly higher in the median high income countries (19.96% and 72.21% respectively) than in the median low income countries (12.16% and 9.36% respectively). We obtain similar patterns when we define young firms as being less than five years old as shown in Figure 6.

# **6. Bank-based versus Market-based Systems**

# **_6.1 Prevalence of Bank-based and Market-based Systems across the World_**

The long-standing debate on market-based versus bank-based systems was initially grounded in the context of Germany and Japan where banks play a leading role in capital allocation, overseeing investment decisions, mobilizing savings and providing risk management and the United Kingdom and United States, which have a market based system where securities markets, 51
**TABLE 3: Financial performance and holding duration.** Sample includes only investments with first cash flow prior to 2010. Duration is measured as the number of years between the first and last cash flow. Standard errors are robust to heteroskedasticity. *** p<0.01, ** p<0.05, * p<0.1

||(1)<br>|(2)|(3)<br>Qua|(4)<br>ntile Regre|(5)<br>ssion|(6)|
|---|---|---|---|---|---|---|
||OLS|0.1|0.25|0.5|0.75|0.9|
||PME|PME|PME|PME|PME|PME|
|Panel A) Direct investments, vintage|pre-2010||||||
|Duration X 1(Duration < 10)|0.46***|0.00|0.03***|0.06***|0.07***|0.23***|
||(0.16)|(0.00)|(0.01)|(0.02)|(0.02)|(0.06)|
|Duration X 1(10 Duration < 20)|0.16*|0.00**|0.02***|0.02**|0.06***|0.17***|
||(0.09)|(0.00)|(0.00)|(0.01)|(0.02)|(0.04)|
|Duration X 1(20 Duration)|0.09|0.00|0.01**|0.01**|0.02|0.08***|
||(0.06)|(0.00)|(0.00)|(0.01)|(0.02)|(0.02)|
|Constant|-0.08|-0.00|0.00|0.34**|1.04***|1.47***|
||(1.00)|(0.02)|(0.03)|(0.14)|(0.12)|(0.29)|
|R-squared|0.0058|0.0006|0.0044|0.0058|0.0021|0.0028|
|Number of observations|1,452|1,452|1,452|1,452|1,452|1,452|
|Panel B) Fund investments, vintage p|re-2010||||||
|Duration X 1(Duration < 10)|-0.52***|-0.03|-0.03|-0.04*|-0.02|-0.07|
||(0.16)|(0.02)|(0.02)|(0.02)|(0.03)|(0.13)|
|Duration X 1(10 Duration < 20)|-0.31***|-0.01|-0.01|-0.01|-0.00|-0.03|
||(0.09)|(0.01)|(0.01)|(0.01)|(0.02)|(0.07)|
|Duration X 1(20 Duration)|-0.22**|-0.02|-0.01|-0.02**|-0.04***|-0.08*|
||(0.10)|(0.02)|(0.01)|(0.01)|(0.01)|(0.05)|
|Constant|5.30***|0.35***|0.56***|0.94***|1.23***|2.38**|
||(1.20)|(0.12)|(0.15)|(0.16)|(0.23)|(1.09)|
|R-squared|0.0463|0.0200|0.0187|0.0194|0.0025|0.0160|
|Number of observations|254|254|254|254|254|254|

34
- **Deaton, Angus** , “Measuring Poverty in a Growing World (or Measuring Growth in a Poor World),” _Review of Economics and Statistics_ , 2005, _87_ (1), 1–19.

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38
policy,<sup>2</sup> traditional gravity models approximate PTA-related changes in countries’ trade structure by relying on sets of one or more PTA dummy variables. This approach is problematic because the dummy variables may also capture a range of other effects contemporaneous with PTA implementation. A futher difficulty is that the dummy variable methodology cannot distinguish the extent of preferential liberalization vis- ́a-vis the multilateral counterfactual, although several recent studies have attempted to correct for this by creating continuous “liberalization indices” to replace the traditional 0-1 PTA dummies. Another criticism of gravity studies is their inability to take into account the terms-of-trade adjustments accompanying preferential liberalization, which can have significant effects on changes in trade flows and welfare (see Burfisher et al., 2004). Furthermore, the traditional gravity equation has little theoretical basis; although gravity-type equations have been derived as reduced-form expressions of general equilibrium models of trade, they are different from the “traditional” specification in equation (1) and rely on a set of behavioral and technology assumptions that are quite restrictive.<sup>3</sup> Finally, critics have argued that physical distance between trading partners—a standard variable in most gravity specifications—is a very bad proxy for transportation costs, pointing out the faulty underlying assumption that these costs are the same for equidistant countries. A number of studies (see, for example, World Bank, 2001) have shown that transportation costs over the same distance vary widely for different trading partners. For example, it costs twice as much to ship a container from Baltimore, MD, to La Paz, Bolivia, as it does to ship the same container from Baltimore to Durban, South Africa, despite the fact that Durban is twice as far away from Baltimore as La Paz.

Notwithstanding the above-mentioned shortcomings of the gravity model, the approach has enjoyed continued popularity due to its two major advantages: ease of implementation and superior empirical performance. The data requirements of the traditional model are low and rely on widely available information, while the estimation procedure is straightforward through OLS or GLS. With regard to the second advantage, the empirical success of gravity models in forecasting the volumes 2In turn, CGE models are often criticized for imposing strong assumptions about the structure of an economy, including specific functional forms and closure rules. In addition, the results are to a large extent determined by base year conditions and the chosen values for various model elasticities—most importantly the elastiticity of substitution between domestic and imported goods (the Armington elasticity; see Armington, 1969) and the income elasticity of household demand.

> 3See Appendix B for a more detailed discussion and derivation of a theory-based gravity equation.

4
Table 10: Electricity Consumption by Subsidy Rates in Ghana

|||Res|idential||
|---|---|---|---|---|
||Lifeline Custo|mers (100% subsidy)|Non-Lifeline C|ustomers (50% subsidy)|
||(1)|(2)|(3)|(4)|
|I (Apr-Dec 2020)|0.403***<br>(0.001)|0.441***<br>(0.001)|||
|I (Apr-Dec 2019)|-0.096***<br>(0.001)|-0.053***<br>(0.001)|||
|I (Apr-Dec 2018)|-0.085***<br>(0.001)|-0.053***<br>(0.001)|||
|I (Apr-Jun 2020)|||0.106***<br>|0.135***<br>|
||||(0.001)|(0.001)|
|I (Apr-Jun 2019)|||0.024***|0.055***|
||||(0.001)|(0.001)|
|I (Apr-Jun 2018)|||-0.032***|-0.003***|
||||(0.001)|(0.001)|
|I (Jul-Dec 2020)|||-0.077***|0.004***|
||||(0.001)|(0.001)|
|I (Jul-Dec 2019)|||0.051***|0.130***|
||||(0.001)|(0.001)|
|I (Jul-Dec 2018)|||-0.016***|0.037***|
||||(0.001)|(0.001)|
|DID (Apr-Dec)|0.408***<br>(0.001)|0.494***<br>(0.001)|||
|DID (Apr-Jun)|||0.078***<br>(0.001)|0.105***<br>(0.001)|
|DID (Jun-Dec)|||-0.110***<br>(0.001)|-0.043***<br>(0.001)|
|Climate Ctrls|No|Yes|No|Yes|
|Customer FE|Yes|Yes|Yes|Yes|
|District X Year FE|Yes|Yes|Yes|Yes|
|R-squared|0.542|0.543|0.525|0.526|
|Mean dep. Var|45.144|45.145|175.043|175.044|
|<br>Obs|14595224|14595225|19028901|19028902|

Notes: Dependent variable is the log of monthly electricity consumption. The DID estimates are derived from the expression: _DID_<sup>_ω_</sup> = _β_<sup>ˆ</sup> 2020<sup>_ω−_</sup><sup><u>1</u></sup> 2 �2019 _k_ =2018<sup>_β_ˆ</sup> _k_<sup>_ω_.Climate Ctrls include the monthly average temperature and total precipitation.Standard errors clustered at</sup> district level in parenthesis. _∗_ Significant at 10 percent level _∗∗_ Significant at 5 percent level _∗∗∗_ Significant at 1 percent level 36
# Partial consumption insurance and ...nancial openness across the world<sup>�</sup>

Constantino Hevia<sup>a;b</sup> , Luis Servén<sup>a</sup> ,

> aWorld Bank, Washington DC, USA

b Department of Economics, Universidad Torcuato Di Tella, Buenos Aires, Argentina June 2013 Abstract This paper examines the extent of international consumption risk sharing for a group of 50 industrial and developing countries. The analysis is based on the empirical implementation of a model of partial consumption insurance whose parameters have the natural interpretation of coe¢ cients of partial risk sharing even when the null hypothesis of perfect risk sharing is rejected. Estimation results show that rich countries exhibit higher degrees of risk sharing than developing countries, and that the gap between both country groups appears to have widened over the period of ...nancial globalization. Moreover, the pattern of consumption risk sharing is related to the degree of ...nancial openness: countries with larger stocks of foreign assets or liabilities exhibit larger degrees of risk sharing. Furthermore, countries whose foreign asset stocks are more tilted towards foreign direct investment assets also show higher degrees of consumption risk sharing.

Keywords: Risk sharing, Financial globalization, Permanent Income. JEL classi...cation: E21; F36; F41

> �We thank Aart Kraay for useful discussions, and Vivian Norambuena for excellent research assistance. This work was supported by the World Bank’s Knowledge Change Program. The views expressed here are only ours and do not necessarily re‡ect those of the World Bank, its Executive Directors, or the countries they represent.