How Concessional is Aid Lending?

The method used by Development Assistance Committee countries for measuring the concessionality of aid loans has remained unchanged for nearly 20 years. It was designed to measure the net cost of aid to donors not the net benefit to recipients. The discount rate used takes no account of changes in the value of the currency of the loan or of changes in prices for goods traded by recipient countries. Furthermore, it does not consider the implications of tying of aid or of policy conditionality. This paper suggests an alternative measure that shows the real net benefit of aid finance to recipients. It argues that the discount rate used by the Development Assistance Committee is too high and that changes in the value of the currency in which a loan is taken out can be important. Nevertheless, real rates of interest for developing countries remain surprisingly high despite low nominal rates due to falling prices of traded goods. This finding has implications for the future real cost of debt service to recipients.     

How bad is the federal budget deficit?

This paper describes two views on the economic effects of government budget deficits. According to the traditional view, deficits have a variety of adverse economic consequences. In particular, they cause domestic residents to save less and eventually to have a lower standard of living than would have occurred if the same level of government spending had been financed entirely with current taxes. A competing view, known as the Ricardian view, holds that the economy is little affected by whether a given level of government spending is financed entirely by current taxes or by some feasible combination of taxes and borrowing. Most of the empirical research on the economic consequences of deficits has failed to isolate the effects predicted by the traditional view. The paper also discusses why the conventional methods of measuring the government budget deficit are not the most economically meaningful ones.     

How much is an MPA worth? public administration education and federal career success

Using a one percent sample of federal personnel records, this paper compares the grades, salaries, job authority, and occupations of MPA-holders to those of federal employees with graduate degrees in business administration, law, the social sciences, and other fields. Even after the race, sex, experience, age, and educational levels of employees have been accounted for, a graduate degree in PA appears to increase career success more than most graduate education and at least as much as an MBA degree. PA programs remain a minor source of managerial personnel, however, and may become less important as competition with business and law schools increases.     

Why do men rape? Understanding the determinants of rapes in India

Abstract

The study examines the determinants of rapes in India using state-level data for the time period 2001–2015. The panel model analysis indicates that there is no impact of education and economic growth, pointing towards a larger role of social and cultural factors in this context. The effect of deterrence variables (such as the number of police stations) is non-existent, possibly pointing towards the incompetency of the police force. Social attitude towards women emerged as the most robust predictor of the extent of rapes in India. We argue that the fundamental problem lies in the misogyny deeply rooted in the Indian society.     

How Strong is the Evidence for the Existence of Poverty Traps? A Multicountry Assessment

Introducing this special collection on asset dynamics and poverty traps, this article assesses evidence on these issues across eight panel data sets in six countries generally not previously considered in this perspective. It examines the importance of assets in relation to chronic poverty and uses parametric and non-parametric methods to test for dynamic asset-based poverty traps. The article finds that chronically poor households have lower levels of assets than others, though does not find evidence of the non-convexities which would imply a multiple dynamic poverty trap. From this base the article introduces the remainder of the articles in this collection which set out many promising approaches to further develop and improve methods and approaches for looking at poverty traps in future.     

How Stable and Reasonable is Postcommunist Public Opinion? The Case of the Czech Republic

The quality of democracy depends on both politicians and citizens. While most attention has focused on politicians, this paper looks at citizens. There has been some scepticism about whether the postcommunist public is prepared to rule their countries. The legacies of communism and the rigours of the transition may have produced citizens whose opinions are unstable and ill-informed and therefore a poor basis for democratic policy making. This paper tests this proposition by considering the nature of public opinion in the Czech Republic. Its main conclusion is that postcommunist public opinion is more reasonable than conventional wisdom suggests. Opinions on most policies change slowly if at all and when they do change the changes are prompted more by gradual shifts in mores than by political manipulation. This suggests that citizens in the region are prepared to have a significant voice in policy making.     

How representative are brics?

The five countries known as brics, while not homogeneous in interests, values, and policy preferences, do have a common interest in checking US/Western power and influence through collaboration with non-Western powers. They vary considerably but all are ahead of other developing countries on population, military power, economic weight, geopolitical clout, and global reach and engagement. They are unrepresentative of the typical developing country in terms of interest, capacity, and resources, but they can represent the interests and goals of developing countries as a group on those issues for which the North–South division is salient. The diversity within brics, their differences from other developing countries, and their potential to reflect and represent the global South are explored with respect to climate change, finance, trade, aid, human rights and intervention, and development. It remains unclear whether brics can morph from a countervailing economic grouping to a powerful political alternative.     

How Accurate is Food-for-Work Self-Targeting in the Presence of Imperfect Factor Markets? Evidence from Ethiopia

Effective targeting of transfers is a key issue in public policy to combat poverty. Much faith is presently placed in self-targeting mechanisms such as public employment schemes supported by food-for-work transfers. Where targeting errors have been observed, these are usually attributed to mismanagement of key operational details, such as the project's wage rate. Using a unique data set from rural Ethiopia, we demonstrate that targeting errors may also have structural causes in some low-income countries. We hypothesise that imperfect factor markets generate a predictable dispersion across households in reservation wage rates that breaks down the unconditionally positive relation between income and shadow wages on which the theory of self-targeting public employment programmes rests. Our results confirm that the inaccuracy of FFW targeting stems from the fact that, in rural Ethiopia, higher income households are endowed with more labour per unit of land or animal. Due to poor factor markets in land and livestock these labour-abundant households have lower marginal labour productivity on farm, thereby depressing the reservation wage rates they find acceptable for FFW participation.