Are Temperature Suitability and Socioeconomic Factors Reliable Predictors of Dengue Transmission in Brazil?

Dengue is an ongoing problem, especially in tropical countries. Like many other vector-borne diseases, the spread of dengue is driven by a myriad of climate and socioeconomic factors. Within developing countries, heterogeneities on socioeconomic factors are expected to create variable conditions for dengue transmission. However, the relative role of socioeconomic characteristics and their association with climate in determining dengue prevalence are poorly understood. Here we assembled essential socioeconomic factors over 5570 municipalities across Brazil and assessed their effect on dengue prevalence jointly with a previously predicted temperature suitability for transmission. Using a simultaneous autoregressive approach (SAR), we showed that the variability in the prevalence of dengue cases across Brazil is primarily explained by the combined effect of climate and socioeconomic factors. At some dengue seasons, the effect of temperature on transmission potential showed to be a more significant proxy of dengue cases. Still, socioeconomic factors explained the later increase in dengue prevalence over Brazil. In a heterogeneous country such as Brazil, recognizing the transmission drivers by vectors is a fundamental issue in effectively predicting and combating tropical diseases like dengue. Ultimately, it indicates that not considering socioeconomic factors in disease transmission predictions might compromise efficient surveillance strategies. Our study shows that sanitation, urbanization, and GDP are regional indicators that should be considered along with temperature suitability on dengue transmission, setting effective directions to mosquito-borne disease control.

Macroeconomic determinants of credit risks: evidence from high-income countries

Purpose The purpose of this paper is to empirically assess the significant indicators of macroeconomic environment that influence credit risk in high-income countries. Design/methodology/approach The study employs the system generalized method of moments estimator to avoid the dynamic panel bias and endogeneity issues. Different indices of economic growth are used in each model in order to find the most significant proxy of the economic cycle that influences problem loans. The analysis is carried out using a sample of 49 developed countries covering a 16-year period (2000–2015). Findings The overall empirical results highlight that the development of industrial sectors and exports are the main drivers of loan performance in high-income countries. The findings specifically recommend adopting an expansionary fiscal policy to boost per capita income and potential productivity for the safety of the banking system. Practical implications The findings have direct practical applicability for stabilizing the financial system. The study recommends the government to increase the productivity of export-oriented industries in order to boost employment and increase the payment obligations of individuals and business firms. More importantly, it highlights the essentiality of perfect economic policy to control default risks. Originality/value To the best of the authors’ knowledge, this is the first empirical study that compares the relative effect of three alternative proxies of the economic cycle on credit risk and identifies the most significant proxy. The current study also empirically shows that industrial development could be one of the crucial factors to improve financial health in developed countries.