Essays in heterogeneous agent macroeconomics

This thesis is comprised of three chapters. The first article studies the determinants of the labor force participation of elderly American males and investigates the factors that may account for the changes in retirement between 1950 and 2000. We develop a life-cycle general equilibrium model with endogenous retirement that embeds Social Security legislation and Medicare. Individuals are ex ante heterogeneous with respect to their preferences for leisure and face uncertainty about labor productivity, health status and out-of-pocket medical expenses. The model is calibrated to the U.S. economy in 2000 and is able to reproduce very closely the retirement behavior of the American population. It reproduces the peaks in the distribution of Social Security applications at ages 62 and 65 and the observed facts that low earners and unhealthy individuals retire earlier. It also matches very closely the increase in retirement from 1950 to 2000. Changes in Social Security policy - which became much more generous - and the introduction of Medicare account for most of the expansion of retirement. In contrast, the isolated impact of the increase in longevity was a delaying of retirement. In the second article, I develop an overlapping generations model of criminal behavior, which extends prior research on crime by taking into account individuals' labor supply decisions and the stigma effect that affects convicted offenders, lowering their likelihood of employment. I use the model to guide a quantitative assessment of the determinants of crime and of a counterfactual experiment in which an income redistribution policy is thought as an alternative to greater law enforcement. The model economy considered in this paper is populated by heterogeneous agents who live for a realistic number of periods, have preferences over consumption and leisure, and differ in terms of their age, their skills as well as their employment shocks. In addition, savings may be precautionary and allow partial insurance against the labor income shocks. Because of the lack of full insurance, this model generates an endogenous distribution of wealth across consumers, enabling us to assess the welfare implications of the redistribution policy experiment. I calibrated the model using the US data for 1980 and then use the model to investigate the changes in criminality between 1980 and 1996. The main results that come out of this study are: 1) Law enforcement policy was the most important factor behind the fall in criminality in the period, while the increase in inequality was the most important single factor promoting crime; 2) Stigmatization is not a free-cost crime control policy; 3) Income redistribution can be a powerful alternative policy to fight crime. Finally, the third article studies the impact of HIV/AIDS on per capita income and education. It explores two channels from HIV/AIDS to income that have not been sufficiently stressed by the literature: the reduction of the incentives to study due to shorter expected longevity and the reduction of productivity of experienced workers. In the model individuals live for three periods, may get infected in the second period and with some probability die of Aids before reaching the third period of their life. Parents care for the welfare of the future generations so that they will maximize lifetime utility of their dynasty. The simulations predict that the most affected countries in Sub-Saharan Africa will be in the future, on average, thirty percent poorer than they would be without AIDS. Schooling will decline in some cases by forty percent. These figures are dramatically reduced with widespread medical treatment, as it increases the survival probability and productivity of infected individuals.

Financial frictions, informality and income inequality

We studied the effects of changes in banking spreads on distributions of income, wealth and consumption as well as the welfare of the economy. This analysis was based on a model of heterogeneous agents with incomplete markets and occupational choice, in which the informality of firms and workers is a relevant transmission channel. The main finding is that reductions in spreads for firms increase the proportion of entrepreneurs and formal workers in the economy, thereby decreasing the size of the informal sector. The effects on inequality, however, are ambiguous and depend on wage dynamics and government transfers. Reductions in spreads for individuals lead to a reduction in inequality indicators at the expense of consumption and aggregate welfare. By calibrating the model to Brazil for the 2003-2012 period, it is possible to find results in line with the recent drop in informality and the wage gap between formal and informal workers

Old-age benefits and retirement decisions of rural elderly in Brazil

I estimate the impact of social security benefits on retirement decisions of rural workers by studying changes in the roles governing social security in Brazil. I focus on a 1991 reform, which brought a reduction in the minimum eligibility age for males and females, a doubling of benefit values and the extension of benefits to non-heads of households. Because beneficiaries are not subject to means or retirement tests, I estimate apure income effect. I find that a reduction in the minimum eligibility age for old-age benefits was an important determinant in the reduction in labor supply of elderly rural workers in Brazil. Finally, I find that benefit take-up rates are larger among the better educated, but least-schooled workers show the largest labor supply responses to the reform.

Behavioural responses of workers towards worker-produced male larvae and queen-produced worker larvae in Acromyrmex subterraneus brunneus Forel, 1911 (Hym., Formicidae)

Leaf-cutting ant workers care for larvae with an elaborate behavioural repertoire to satisfy the needs of the offspring. In order to investigate worker discrimination ability in the leaf-cutting ant Acromyrmex subterraneus brunneus, we compared the behavioural responses of workers towards worker-produced male larvae and queen-produced worker larvae, including the following behavioural acts: licking the larval body, transporting larvae, feeding larvae with hyphae, scraping larval mouth parts, ingesting faecal fluid excreted by the larva, and inserting hyphae of the symbiontic fungus on the larval body. We verified that workers behaved differently depending on larval origin, i.e. licking the larval body, transporting larvae and inserting hyphae of the symbiontic fungus on the larval body. Observed differences denote the ability of workers in discriminating among larvae, probably because of their different individual needs.

Effect of paprika on the ovarian development of Africanized honeybee workers (Apis mellifera L.) in queenless colonies

Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq)

Effects of genetic polymorphisms CYP1A1, GSTM1, GSTT1 and GSTP1 on urinary 1-hydroxypyrene levels in sugarcane workers

Sugarcane workers in Brazil are exposed to various genotoxic compounds, including polycyclic aromatic hydrocarbons (PAHs), derived from an incomplete combustion process of burnt sugarcane fields. The effects of the occupational exposure to sugarcane fields burning were measured in urine samples of sugarcane workers from the northwest of the State of São Paulo when exposed (harvesting) and when non-exposed (non-harvesting). The urinary levels of 1-hydroxypyrene (1-OHP) and the influence of the genetic polymorphisms CYP1A1, GSTM1, GSTT1 and GSTP1 were evaluated. Our results showed that the 1-OHP levels were significantly higher (P < 0.0000) in the exposed sugarcane workers (0.318 mu mol mol(-1) creatinine) than in the non-exposed workers (0.035 mu mol mol(-1) creatinine). In an unvaried analysis, no influence regarding the polymorphisms was observed. However, multivariate regression analysis showed that the CYP1A1*4 polymorphism in the exposed group, and age and the GSTP1 polymorphism in the non-exposed group significantly influenced urinary 1-OHP excretion levels (P < 0.10). The same group of sugarcane workers was significantly more exposed to PAHs during the harvesting period than during the non-harvesting period. (c) 2006 Elsevier B.V. All rights reserved.

Inequalities in access to education and healthcare

The burden of disease is borne by those who suffer as patients but also by society at large, including health service providers. That burden is felt most severely in parts of the world where there is no infrastructure, or foreseeable prospects of any, to change the status quo without external support. Poverty, disease and inequality pervade all the activities of daily living in low-income regions and are inextricably linked. External interventions may not be the most appropriate way to impact on this positively in all circumstances, but targeted programmes to build social capital, within and by countries, are more likely to be sustainable. By these means, basic oral healthcare, underpinned by the primary healthcare approach, can be delivered to more equitably address needs and demands. Education is fundamental to building knowledge-based economies but is often lacking in such regions even at primary and secondary level. Provision of private education at tertiary level may also introduce its own inequities. Access to distance learning and community-based practice opens opportunities and is more likely to encourage graduates to work in similar areas. Recruitment of faculty from minority groups provides role models for students from similar backgrounds but all faculty staff must be involved in supporting and mentoring students from marginalized groups to ensure their retention. The developed world has to act responsibly in two crucial areas: first, not to exacerbate the shortage of skilled educators and healthcare workers in emerging economies by recruiting their staff; second, they must offer educational opportunities at an economic rate. Governments need to lead on developing initiatives to attract, support and retain a competent workforce.

Post-selection and return of foraged material by Acromyrmex subterraneus brunneus (Hymenoptera: Formicidae)

Two colonies of Acromyrmex subterraneus brunneus Forel (Hymenoptera: Formicidae) were studied regarding their behavior during cultivation of the fungus garden to determine a) the existence of post-selection of foraged material by the workers, and b) if present, the mechanism of this discrimination and how this material is returned. Many studies on plant processing by leaf-cutting ants have been carried out, but none of them has investigated the decision-making process of workers in the case of erroneous food selection. For this purpose, material with different degrees of moisture and hardness (floral sponge, polystyrene, plastic and clay) were individually offered to the colonies and the tasks performed by the different size categories were carefully recorded. Three tasks, i.e., foraging, cultivation of the fungus garden and return of the foraged material, were studied and subdivided into 14 subtasks. Analysis of all inert materials as a whole showed the presence of post-selection of foraged material through the return of material inadequate for the workers and the fungus. Discrimination of the inert material was observed at the time of shredding, probably based on parameters such as physical resistance to cutting and moisture content. A. s. brunneus workers showed flexibility in their activities during substrate processing. The observed post-selection of foraged material provides strong evidence for the cognitive abilities of worker ants and of the colony as a whole. Polymorphism and a complex society represent vital characteristics for the ecological success of this species.

Fiscal Panorama of Latin America and the Caribbean 2013: tax reform and renewal of the fiscal covenant

Includes bibliography

Trade, poverty and complementary policies in Latin America

Includes bibliography

Income inequality in Central America, Dominican Republic and Mexico: assessing the importance of individual and household characteristics

Includes bibliography

Flexible labour markets, workers' protection and active labour market policies in the Caribbean

Includes bibliography

The informal sector and poverty in Latin America

Includes bibliography

Fiscal policy and the economic cycle in Chile

Includes bibliography

Inequality in Central America in the 1990s

Includes bibliography