infonet-economy

This paper proposes novel identification techniques to examine the trade-offs that microfinance institutions face between increasing their profits and their social impact. It uses a quantile regression approach to examine how these trade-offs evolve as institutions become more commercialized. The identification strategy is based on an instrumental variable approach, and also...

We conduct an impact evaluation of the minimum wage legislation for domestic workers that was introduced in four states in India over the period of 2004-2012. Combining the matching and difference-in-difference estimation strategies we estimate both the short-run and long-run impacts of the legislation on real wages and on employment opportunities. Our results show a positive impact...

A growing share of the world population is getting access to a formal bank account. This allows a move from cash to account based payments. Grounding our hypothesis in behavioral economics, we conjecture that being paid on an account instead of in cash can play a major role in encouraging savings. When paid on the account, the money is saved by default, while - as long as payments...

Understanding the institutional features that can improve learning outcomes and reduce inequality is a top priority for international and development organizations around the world. Economists appear to have a good case for support to non-governmental alternatives as suppliers of schooling. However, unlike other policy domains, freer international trade or privatization, economists...

It is well established that private information is critical to our understanding of asset prices. In this paper we argue that it also affects international capital flows and use a simple two-country DSGE model to illustrate its impact. We show that private information (i) increases the volatility of both net and gross capital flows, (ii) leads to a high correlation between capital...

While the impact of exchange rate changes on economic growth has long been an issue of key importance in international macroeconomics, it has received renewed attention in recent years, owing to weaker growth rates and the debate on “currency wars”. However, in spite of its prevalence in the policy debate, the connection between real exchange rates and growth remains an unsettled...