scholarly journals Intra-Household Bargaining in Poor Countries

2018 ◽  
Author(s):  
Jean-Marie Baland ◽  
Roberta Ziparo
Keyword(s):  
Risk Sharing ◽  
Collective Model ◽  
Strategic Decision ◽  
Arranged Marriages ◽  
Strategic Investment ◽  
Poor Countries ◽  
Household Resources ◽  
Household Behaviour ◽  
Empirical Regularities ◽  
Development Literature

This chapter assesses the relevance of the collective model for the analysis of households in poor countries. As an economic unit, a household creates the possibility of mutual gains for spouses thanks to the possibility of joint consumption of public goods, risk sharing, etc. The collective model assumes that households behave efficiently, in the sense that there is no misallocation or waste of household resources, given the outside options of each spouse. This chapter bridges the theoretical literature describing efficient intra-household behaviour and the development literature that collects empirical regularities pointing toward the existence of strategic decision making among spouses. It examines the key elements of the collective model and discusses its relevance to analysing intra-household behaviour in poor countries. It explores the role that risk and uncertainty, information asymmetries, power imbalances, arranged marriages, strategic investment, gender norms, and extended households play in the attainment of efficiency.

scholarly journals Real Options and Discounted Cash Flow Analysis to Assess Strategic Investment Projects

2017 ◽  
Vol 30 (1) ◽  
pp. 91-101 ◽  
Author(s):  
Agnė Pivorienė
Keyword(s):  
Real Options ◽  
Cash Flow ◽  
Flow Analysis ◽  
Investment Decisions ◽  
Business Environment ◽  
Strategic Decision ◽  
Discounted Cash Flow ◽  
Strategic Investment ◽  
Investment Projects ◽  
Real Options Approach

Abstract In today’s uncertain and highly competitive business environment, the difficulty to make strategic investment decisions is growing. The dominant discounted cash flow analysis requires the assumption of perfect certainty of project cash flows. However, under uncertainty traditional DCF approach falls short of providing adequate strategic decision support, and this situation demands new methods for investment evaluation. Real options approach (ROA) has shown the potential for valuation of strategic corporate investment decisions and managerial flexibility in situations of high uncertainty. Under ROA, projects are viewed as real options that can be valued using financial option pricing techniques. This framework allows their owner to keep investment options open and to benefit from the upside potential of an opportunity while controlling the downside risk. The main aim of this research is to investigate the feasibility of real options approach and traditional DCF analysis for assessment of strategic investment projects under environmental uncertainty.

What Kind of Economic Policy Do We Need (On the Book by E. Reinert How Rich Countries Got Rich... and Why Poor Countries Stay Poor)

2012 ◽  
pp. 142-150
Author(s):  
V. Klinov
Keyword(s):  
Economic Theory ◽  
Economic Policy ◽  
Economic Development ◽  
Free Trade ◽  
Traditional Approach ◽  
Strategic Investment ◽  
Poor Countries ◽  
History Of ◽  
Classical Economic ◽  
Rich Countries

This is the review of the acclaimed monograph by the famous Norwegian economist Erik Reinert. It is shown that interest in the book is caused by a vivid opposition to the traditional approach of the classical economic theory of lessons of the real history of economic policy. These lessons show that rich countries have become rich due to a combination of targeted state policy, protectionism and strategic investment, rather than free trade, as the "classic" teaches. It was such a policy that guaranteed successful economic development of countries, beginning with the Renaissance and ending with the modern "tigers" of Southeast Asia.

Venture Capital and the Macroeconomy

2019 ◽  
Vol 32 (11) ◽  
pp. 4387-4446 ◽  
Author(s):  
Christian C Opp
Keyword(s):  
Economic Growth ◽  
Venture Capital ◽  
Exact Solutions ◽  
Endogenous Growth ◽  
Risk Sharing ◽  
Matching Frictions ◽  
Empirical Regularities ◽  
Editorial Decision ◽  
The Impact

Abstract I develop a model of venture capital (VC) intermediation that quantitatively explains central empirical facts about VC activity and can evaluate its macroeconomic relevance. The impact of VC-backed innovations is significantly larger than suggested by observed aggregate venture exit valuations, even after accounting for large exposures to systematic and uninsurable idiosyncratic risks. The risk properties of venture capital play a quantitatively important role in both explaining empirical regularities and shaping the value of ventures’ contributions to economic growth. The model is analytically tractable and yields exact solutions, despite the presence of matching frictions, imperfect risk sharing, and endogenous growth. Received January 16, 2018; editorial decision November 7, 2018 by Editor Stijn Van Nieuwerburgh.

scholarly journals Nonmarket Institutions for Credit and Risk Sharing in Low-Income Countries

1995 ◽  
Vol 9 (3) ◽  
pp. 115-127 ◽  
Author(s):  
Timothy Besley
Keyword(s):  
Low Income ◽  
Risk Sharing ◽  
Design Theory ◽  
Imperfect Information ◽  
Information Economics ◽  
Low Income Countries ◽  
Special Focus ◽  
Poor Countries ◽  
Limited Enforcement ◽  
Nonmarket Institutions

The design credit and risk institutions in low-income countries provides one of the most exciting testing grounds for theories of contracting with imperfect information and limited enforcement. This paper reviews some of the recent literature, with a special focus on nonmarket institutions that cope with risk and provide credit. This literature attempts to bring together insights from economic theory, especially information economics, contract theory, and mechanism design theory. However, it is also applied, being motivated by the circumstance of the poor countries that their authors have visited and studied.

scholarly journals Children's Resources in Collective Households: Identification, Estimation, and an Application to Child Poverty in Malawi

2013 ◽  
Vol 103 (1) ◽  
pp. 438-471 ◽  
Author(s):  
Geoffrey R Dunbar ◽  
Arthur Lewbel ◽  
Krishna Pendakur
Keyword(s):  
Family Size ◽  
Child Poverty ◽  
Collective Model ◽  
Private Good ◽  
Household Level ◽  
Individual Preferences ◽  
Household Resources ◽  
Household Members ◽  
Using Data ◽  
Size And Structure

The share of household resources devoted to children is hard to identify because consumption is measured at the household level and goods can be shared. Using semiparametric restrictions on individual preferences within a collective model, we identify how total household resources are divided up among household members by observing how each family member's expenditures on a single private good like clothing vary with income and family size. Using data from Malawi we show how resources devoted to wives and children vary by family size and structure, and we find that standard poverty indices understate the incidence of child poverty. (JEL I31, I32, J12, J13, O12, O15)

Population and Development in Poor Countries: Selected Essays

1994 ◽  
Vol 48 (2) ◽  
pp. 371-372
Author(s):  
Mark R. Montgomery
Keyword(s):  
Poor Countries

A review of career interventions from an educational perspective: Have investigations shed any light?

2000 ◽  
Vol 59 (4) ◽  
pp. 227-239 ◽  
Author(s):  
Lee-Ann Prideaux ◽  
Peter A. Creed ◽  
Juanita Muller ◽  
Wendy Patton
Keyword(s):  
Career Development ◽  
Intervention Studies ◽  
Future Research ◽  
Development Programs ◽  
Career Intervention ◽  
Career Interventions ◽  
International Trends ◽  
Specific Career ◽  
Education Interventions ◽  
Development Literature

Despite widespread acknowledgement of the importance of career development programs to assist students in their complex transition from school to work, very few specific career education interventions have been objectively evaluated. The aim of this paper is to highlight what the authors consider to be a conspicuous shortfall in the career development literature to date, that is, reports of methodologically sound career intervention studies carried out in actual high school settings. International trends in the world of work are briefly discussed in association with the repercussions these changes are producing for today's youth. The major portion of this article is devoted to a comprehensive review of career intervention studies with particular attention paid to the methodological and theoretical issues that resonate from this review process. Recommendations for future research are proposed.

Rising Inequality in the New Global Economy

2006 ◽  
pp. 84-89 ◽  
Author(s):  
N. Birdsall
Keyword(s):  
Developing Countries ◽  
Global Economy ◽  
Slow Growth ◽  
Global Markets ◽  
Modern World ◽  
Government Programs ◽  
Poor Countries

Reasons of high inequality in the modern world are considered in the article. In developing countries it interacts with underdeveloped markets and inefficient government programs to slow growth, which in turn slows progress in reducing poverty. Increasing reach of global markets makes rising inequality more likely and deepens the gap between rich and poor countries. Because global markets work better for the already rich, we should increase the representation of poor countries in global fora.

Structuralism as a Pamphlet (On the Book by E. Reinert “How Rich CountriesGot Rich... And Why Poor Countries Stay Poor”. 2nd ed.)

2014 ◽  
pp. 147-153
Author(s):  
P. Orekhovsky
Keyword(s):  
Economic Theory ◽  
Economic Development ◽  
Structural Analysis ◽  
Increasing Returns ◽  
The Other ◽  
Static Theory ◽  
Poor Countries ◽  
Historical School ◽  
Socio Economic Development ◽  
The Relationship

The review outlines the connection between E. Reinert’s book and the tradition of structural analysis. The latter allows for the heterogeneity of industries and sectors of the economy, as well as for the effects of increasing and decreasing returns. Unlike the static theory of international trade inherited from the Ricardian analysis of comparative advantage, this approach helps identify the relationship between trade, production, income and population growth. Reinert rehabilitates the “other canon” of economic theory associated with the mercantilist tradition, F. Liszt and the German historical school, as well as a reconside ration of A. Marshall’s analysis of increasing returns. Empirical illustrations given in the book reveal clear parallels with the path of Russian socio-economic development in the last twenty years.

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