rafmacalaba/datause-encoder-data huggingface dataset:
all had female partners. All conversations were recorded and transcribed with the previous authorization of the participants.

Table 3. Profile of Communities Visited

|_Community_|_Municipality,_<br>_Department_|_Extreme poverty_<br>_(%)* _|_Main economic activity_|
|---|---|---|---|
|_Palo Marcado_|Lepaterique, Fco.<br>Morazán|57.5|Vegetables - subsistence|
|_Las Tablas_|Lepaterique, Fco.<br>Morazán|57.5|Vegetables -<br>underemployment|
|_Las Crucitas_|Choluteca,<br>Choluteca|44.9|Precarious and temporary<br>wage work|
|_Coffee Cooperative Belen Limited,_<br>_COCABEL_|Belén, Lempira|78.0|Coffee cooperative|
|_Coffee Cooperative Capucas,_<br>_COCAFCAL_|San Pedro de<br>Copán, Copán|56.5|Coffee cooperative|
|_Female Association of Coffee_|La Labor,|60.9|Coffee cooperative|
|_Producers of La Labor, AMPROCAL_|Ocotepeque|||
|_Cooperative of United Agricultural_<br>_Producers, COPRAUL_|Sinuapa,<br>Ocotepeque|60.4|Vegetable seedlings<br>cooperative|

Source: Authors’ tabulations. Extreme poverty rates is the percent of households living in extreme poverty in 2014, based on World Bank estimates using the Honduran Population Census and Household Surveys.

Table 4. Number of Interviews by Community

|_Communities_|_Number of individual_<br>_interviews - Women_|_Number of individual_<br>_interviews - Men_|_Focus Group_<br>_Discussions - Women_|
|---|---|---|---|
|_Southern Zone: 3 communities (Palo_|4 Palo Marcado|5 Palo Marcado|2 Palo Marcado|
|_Marcado, Las Tablas & Las Crucitas)_|8 Las Tablas|4 Las Tablas|1 Las Tablas|
|_Project ACS -PROSASUR_|8 Las Crucitas|4 Las Crucitas|1 Las Crucitas|
|_Western Zone: 4 Cooperatives of_|8 Cooperative|4 Cooperative|1 Cooperative|
|_the World Bank project COMRURAL_|COCAFCAL- Capucas|COCABEL, Belén.|COCABEL, Belén|
||8 Cooperative|4 Cooperative|1 AMPROCAL, La Labor|
||COPRAUL-Plan del|COPRAUL-Plan del||
||Rancho|Rancho||
|_TOTAL_|<br>36|21|6|

Interviews and focus groups were conducted in Spanish language and fully transcribed and coded in a coding matrix consisting of key themes and codes identified in early engagement with incoming data which was adapted throughout the analysis process. To enhance consistency in the coding process, a subset of transcripts were coded twice by different research team members thereby facilitating quality checks and mutual feedback processes between team members. The coded matrix containing quotations and themes organized by sample group and topic was then used as the principal basis for analysis and write-up of a draft version of the paper. Preliminary findings were discussed within the research team before a second deep-dive into the qualitative data to further explore specific themes before finalizing the paper.

12
The current global financial crisis has underlined the need for further and deeper reforms, while at the same time potentially undermining progress made so far. The drastic reduction in international capital flows forces most countries in the region to rely more on domestic resources and increase domestic intermediation efficiency. Beyond macroeconomic policies and institutional reforms, issues of market structure will become important in the coming years. Theory and international evidence are ambiguous on the relationship between bank concentration and stability. The experience in Nigeria is too fresh to draw inferences from, but has raised awareness of the issue across the region. As we will discuss below, there is no clear mapping from market structure to competition; attempts to consolidate the sector might increase efficiency and stability, with ambiguous implications for outreach, but the ultimate effect will depend on the future ownership structure of the Kenyan banking system and the underlying financial infrastructure, including the contractual framework and possible credit registry.

The remainder of this chapter is structured as follows. Section 2 discusses Kenya’s financial safety net, including recent changes in the regulatory framework and the deposit insurance scheme. Section 3 addresses the stability of banks, in the context of the current market structure. Section 4 presents trends in interest rates spreads and its components over the past seven years. Section 5 discusses the outreach of Kenya’s banking system, based on recent household surveys. Section 6 discusses the case for regulation-induced consolidation in the sector, based on the findings of the previous sections and international experience, and section 7 concludes.

# **2. The Regulatory Framework for Banking in Kenya**

Given the critical role of banks for a modern market economy, the opacity of banks’ balance sheets, the dispersion of banks’ creditors – typically many small depositors – and the maturity transformation banks perform converting short-term deposits into medium- to long-term assets there are limitations to market discipline and additional sources of fragility, compared to nonfinancial corporations. Banking has therefore historically been one of the most regulated sectors, with regulation ranging from licensing requirements to on-going supervision to a bank-specific failure regime and deposit insurance.

5
10 for taxation on both revenue and welfare grounds. Apart from export tax revenues, Madagascar's source of budgetary revenues is fairly similar to that of other low income countries.

The detailed figures of budgetary revenues for Madagascar in table 2b for 1988 reveal another characteristic of tax structures in low income countries: a distortionary tax structure across markets and activities. Trade taxes discriminate across markets, and profits and wage taxes discriminate against investment and employment.

We retain two conclusions from this brief look at the Malagasy fiscal system: a complex tax structure that yields relatively low revenues, and hence a suggestion of tax evasion; and a distorted tax structure that discriminates against trade and agricultural activities. In the following, we attempt to quantify both the potential loss in revenue from evasion and the distortionary costs of taxation while recognizing that the Malagasy administrative tax ability is weak.

# 3. A General Equilibrium **Tax** Model

We now describe briefly the general equilibrium tax model we shall use to evaluate the welfare and resource allocation effects of tax reform. The features of the model are standard to computable general equilibrium (CGE) models, except for the inclusion of the various taxes which reflect the Malagasy tax system. We therefore describe briefly the model using a one-sector formulation to save on notation.' The empirical application is with a ten-sector model calibrated to 1988 data whose aggregation is described in table 4.

Consumer behavior is represented by a linear expenditure system. The resulting demand functions (equation 1) are derived from the maximization of the Stone-Geary utility indicator. These 1 Except for the treatment of technology for intermediate demand and the treatment of taxes, the model's structure is quite similar to the one presented in de Melo and Tarr (1992, Chapter 3). For an introductory presentation to CGE models, see Dervis, de Melo and Robinson (1982, Chapters **_5_** and 6).
# **IV. Data, Methodology and Sample Characteristics**

# **4.1 Data**

The remainder of the paper uses household survey data from Brazil, Ecuador and Mexico to test the qualitative findings. These countries were selected solely on the basis of data availability – they were the only labor market surveys for Latin America that could be obtained and that permitted identification of market work in the home. The data sets used are: the Brazilian National Survey of Households ( _Pesquisa Nacional de Amostra do Domicilio -_ PNAD) for 1999; The Mexican National Urban Employment Survey ( _Encuesta Nacional de Empleo Urbano -_ ENEU) for 1999 (second quarter); and the Ecuadorian Living Conditions Survey ( _Encuesta de Calidad de Vida -_ ECV) for 1999. For all countries, the sample is limited to urban men and women who are between the ages of 15 and 70 years old.<sup>9</sup> Men and women are analyzed separately since the qualitative analysis suggests that they have very different patterns in home-based work and distinct motivations for engaging in this organization of work. The regression analysis only includes those who have no more than a secondary education, thus excluding professionals. The resulting sample size for Brazil is near 60,000 and for Mexico is close to 100,000, while the Ecuador sample has fewer than 3,000 individuals.

Due to data limitations, the most basic definition of home-based worker is used: an individual whose place of employment is his/her home. The surveys permitted identification of four general types of home-based workers:

> 9 The motivation for the spatial limitation is two-fold: First, the ENEU only covers the urban population so to allow for some standardization across countries, the data was limited to urban population in the other two sample countries.  Second, the nature of home-based work in rural areas is more complex than in urban areas due to the great overlap in home and market production activities, particularly in agricultural households, and the greater in-kind payment of rural work.

10
coordinating tax reforms: can lost tariffs be recouped?

10 Column 2 reports Instrumental Variables (IV) estimates from the Two-Stage Least Squares (2SLS) model on equation 1.1. The coefficient on trade tax is negative and statistically significant at the 5 percent level. Although both trade tax and domestic tax variables are expressed relative to GDP, for a clearer insight into the magnitude of this coefficient, it could be said that for every dollar lost on trade taxes, low-income countries have recouped nearly 25 cents in the short run. In the long run, as indicated by ω, the recovery rate per dollar is nearly 74 cents.

The estimates in column 3 (Difference GMM) show that there a large recovery of trade tax in the short run (nearly 79 cents for each dollar lost) but not in the long term. This coefficient is significant at the 10 percent level, but it is likely to be biased. This is generally detected if the size of the coefficient of the lagged dependent variable obtained under a first-differenced GMM is smaller that obtained In Column 4 (System GMM), the coefficient on short-term recovery is statistically significant at the 1 percent level, suggesting that low-income countries recouped nearly 46 cents in the dollar.<sup>17</sup> Furthermore, the coefficient on the lagged dependent variable in System GMM lies between those obtained under fixed effects (0.69) and OLS estimations (not reported, but the coefficient is 0.89).<sup>18</sup> The tests of autocorrelation show that first order serial correlation is present but the second order serial correlation is not, as expected. These checks for the appropriateness of the model specification are in line with what Baunsgaard & Keen (2010) show.

Finally, column 5 reports System GMM estimates with oil and gas rent per capita as a control for natural resource wealth instead of the export per capita of oil, gas, ores, and metals that was used in column 4. The coefficient of short-term recovery of 32 cents to the dollar is statistically significant at the 5 percent level. In

> 17 The coefficient for long-term replacement is very high, at 2.18, but it is only significant at the 25 percent level.

> 18 This is reassuring because the OLS estimates are biased upwards and the fixed effects estimates are biased downwards.
Table 2. Estimating the effect of percentage changes in domestic food prices on changes in the $1.25/day and $2/day poverty headcounts in robust and IV GMM models

|Regression Number|1|2|3|4|
|---|---|---|---|---|
|Poverty line for headcount measure|$1.25/day|$1.25/day|$2/day|$2/day|
|Estimator|OLS|IV GMM|OLS|IV GMM|
|Change in log of domestic food prices|-19.27**|-81.67**|-17.65***|-71.87**|
||(9.24)|(40.10)|(7.48)|(36.09)|
|N|302|300|313|310|
|Tests|||||
|Kleibergen-Paap rk Wald F statistic||12.20||13.68|
|Kleibergen-Paap rk LM statistic||0.01||0.01|
|Stock-Wright LM statistic||0.04||0.04|

_Source_ : Author’s estimates from World Bank (2013) poverty data and ILO (2013) food price data.

_Notes_ : See text for definitions of the variables. *, **, and *** indicate significance at the 10%, 5% and 1% levels, respectively. Standard errors clustered at the country level are reported in parentheses. For the IV GMM, errors are clustered at the country level and the excluded instrument is the change in international prices (see section III for details). All regressions control for time dummies. The null hypothesis of the Hausman tests is that the variable under consideration can be treated as exogenous. The Kleibergen-Paap rk Wald F statistic measures weak instruments, with critical values varying between 5.53 and 16.38, suggesting that the regressions above may suffer from a weak instrument problem. The null hypothesis of the Kleibergen-Paap rk LM statistic is that the equation is underidentified. The null hypothesis of the Stock-Wright LM test has the null hypothesis that the coefficient on the change in real food prices is equal to zero and overidentifying restrictions are valid.

# _Robustness Tests_

Qualitatively, the results reported in table 2 are largely quite robust to important variations in data and methods, which are reported in appendix S2. Table S2.1 reports the specifications from table 2 after using a robust regressor instead of ordinary least squares. The robust regressor yields slightly larger and more precise coefficients relative to OLS, suggesting that the latter are somewhat influenced by outliers. Tables S2.2 and S2.3 report Arellano-Bond dynamic GMM regression models with lagged poverty rates as an additional dependent variable. The dynamic GMM results are closer to the OLS results than to the IV GMM. Table S2.4 restricts the sample to observations in which the last survey year used is 2002 onwards to examine whether the results are robust to the more recent period of international price variability. The results in table S2.4 suggest that they are. Table S2.5 looks at sample restrictions in which we exclude each major 10
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services. The consumption of biofuels and their share in liquid fuel consumption increases by a small amount.

Table E.1: Parameter Changes in Model Sensitivity Analysis

|Parameter|Description|Baseline<br>Value|New<br>Value|
|---|---|---|---|
|_ξ_<sup>_u_</sup><br>2|Natural Land Access Cost Function Parameter|42,000|28,000|
|_σg_|Elasticity of Substitution between Land and Fer-<br>tilizers|1.14|1.71|
|_θ_<sup>_b,_2</sup>|2G Biofuels' Conversion Technology|0.467|0.71|
|_κφ_|Factor Specic Tech. Change Growth p.a.|1.005|1.0075|
|_κe_|Energy Eciency Growth Rate p.a.|0.016|0.011|
|_δ_|Social Discount Rate|0.015|0.0225|

# References

- Antoine, B., Gurgel, A. and Reilly, J.: 2008, Will Recreation Demand for Land Limit Biofuels Production?, Journal of Agricultural & Food Industrial Organization 6(2), 5.

- Brown, R., Rosenberg, N., Hays, C., Easterling, W. and Mearns, L.: 2000, Potential Production and Environmental Eects of Switchgrass and Traditional Crops under Current and Greenhouse-Altered Climate in the Central United States: A Simulation Study, Agriculture, Ecosystems & Environment 78(1), 3147.

- Bucci, A. and Guerrini, L.: 2009, Transitional Dynamics in the Solow-Swan Growth Model with AK Technology and Logistic Population Change, The BE Journal of Macroeconomics 9(1), 43.

- Cassman, K. G.: 1999, Ecological Intensication of Cereal Production Systems: Yield Potential, Soil Quality, and Precision Agriculture, Proceedings of the National Academy of Sciences 96(11), 59525959.

- Cassman, K., Grassini, P. and van Wart, J.: 2010, Crop Yield Potential, Yield Trends, and Global Food Security in a Changing Climate, in D. Hillel and

35
# **I. Introduction**

Trade credit is an important source of external financing for both small and large firms around the world (Demirguc-Kunt and Maksimovic 2005). For instance, firms often offer working capital financing to their customers, reported as accounts receivables, even if they are small or credit constrained (McMillan and Woodruff 1999, Marotta 2005, and Van Horen 2005).

Trade credit might also be available when other forms of financing are not. For instance, during periods of contractions in bank credit (say, due to monetary tightening or bank distress), buyers might depend more on trade credit for short-term financing as a response to credit market tightening, and this may be especially true for small firms (see, for example, Himmelberg et al. 1995, Choi and Kim, 2005, and Love et al. 2007).

Trade credit is also thought of as a way for a supplier to engage in price discrimination, giving favored or more powerful clients longer terms (see, for example, Wilner 2000, Fisman and Raturi 2004, Van Horen 2005, and Burkart, Ellingsen, and Giannetti, 2008).

Furthermore, trade credit may simply be customary in an industry, with customs driven by economic rationales such as allowing buyers time to check out the quality of the supplied goods (Lee and Stowe, 1993).

Studies have explored the supply and demand of trade credit around the world (for instance, Petersen and Rajan 1997, Johnson, McMillan and Woodruff 2002, Boissay and Gropp 2007, and Fabbri and Klapper 2008). Yet, even the stylized facts on how the contract terms of trade credit vary across buyers and suppliers of different characteristics are poorly understood, in part because firm-level contract-level data have not been easily available. For example, what is the typical duration for which trade credit is offered? Who is offered a longer time to pay? Which firms are offered early payment discounts? By whom?

This paper addresses these questions using a unique database that includes detailed contract information for about 30,000 transactions for 53 large buyers in the United States and Europe. We summarize typical trade credit terms and how they relate to buyer and seller characteristics. We also study the use of early payment discounts. We then draw some 2
- 17 -

## III. ANALYSIS OF PAY AND EMPLOYMENT IN BANK RESEARCH AND CESW

## A. COUNTRY ECONOMIC AND SECTOR WORK

The increased attention being given to public pay and employment issues is reflected in the expanding body of Bank Research and Country Economic and Sector Work focusing on these issues. In the period under review, Country Economic memoranda have increasingly treated pay and employment issues at length. For most countries, attention to pay and employment in the CEM preceded subsequent Bank operational work. In Senegal, for example, the 1984 CEM identified overextension of the public sector as one of four main problems affecting the country's development. The report also underscored the need to control the growth of public expenditures. Additional sector work, including analysis of pay and employment issues, followed and led to the preparation of a freestanding Development Management Technical Assistance Project to provide medium-term support to strengthen institutions for personnel management.12 The 1985 Gambia CEM recommended employment reductions and the restraint of aggregate wage expenditures. These recommendations were incorporated into operational activities through the 1986 SAL.

In some countries, CEMs themselves have constituted the Bank's principal operational work. In Thailand, for example, aside from a small compensation study financed through the SAL, the 1986 CEM was the main vehicle for Bank-country policy dialogue focusing on employment and pay issues. In Bangladesh, recommendations made in the 1985 CEM with regard to pay and employment also formed the basis for policy dialogue between the Bank and Government, though these issues will recur in the work of an Administrative Reforms Committee set up under the 13th Import Program Credit. In Sri Lanka, some recommendations made in the 1986 CEM suggesting revisions in the salary structure have been adopted by Government, and the analysis and recommendations of the report on future civil service salary and employment policy by the Presidential Reform Committee largely coincide with those of the CEM. Indeed, in countries where national skill levels are high and autonomy from Bank leverage is considerable, some Bank staff contend that ongoing sector work is the most influential instrument of Bank intervention. This is so, it is suggested, as long as it can be clearly demonstrated that the Bank's professional contribution is unique and of superior quality.

Even where CESW has not led directly to lending, its impact has been felt. For example, the Indonesia Management DeveloRment ReRort's recommendation that in-kind payments be integrated into the basic salary structure of the Indonesian Civil Service was subsequently adopted by Government.

# B. BANK AND IMF RESEARCH

There has also been a growing research effort within the Bank examining public employment and pay issues. (See attached bibliography for D1/ Additional sector work included: John Nellis, An Assessment of the Senegalese Administrative System, WA2DB Working Paper/Reports No. 7, September 11, 1986.
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