The economics of demand-led growth: theory and evidence for Brazil

Includes bibliography

The economics of climate change in Latin America and the Caribbean: Paradoxes and challenges of sustainable development

The robust growth of Latin American and Caribbean economies in recent years has led to an improvement in economic and social conditions in the region. It has also had collateral negative effects, however, such as more air pollution in urban areas and a serious deterioration of various natural assets, including non-renewable resources, water resources and forests. There are economies and societies within the region that are highly vulnerable to all sorts of adverse impacts of climate change, and whose production structures and consumption patterns still tend to leave a large carbon footprint. This situation has reached the point of undermining the foundations of the region’s economic buoyancy. Latin America and the Caribbean therefore needs to make the transition in the years to come towards a sustainable form of development that will preserve its economic, social and natural assets for future generations and leave them with a legacy of a more equal, more socially inclusive, low-carbon form of economic growth. Viewed from this standpoint, the climate change challenge is also a sustainable development challenge, and if it is to be addressed successfully, a global consensus that recognizes the asymmetries and paradoxes of the problem will have to be reached..

Consumption Diagnosis of Sweet Cassava in three Municipalities in Cuba

Cassava is an important staple food for human and animal feeding in Cuba. Despite its importance, there is little or nonexistent information to diagnose preferences and frequency of consumption of cassava in that country. In this sense, the present article characterizes the preferences and frequency of consumption of cassava in the municipalities of Plaza de la Revolución-La Habana province, El Salvador–Guantanamo province and San José de Las Lajas–Mayabeque province in Cuba. A survey was conducted through a questionnaire containing twelve closed and two open questions. The sample was determined based on the number of total population of each municipality considering 95% as confidence interval and 5% as error margin. The results were statistically analyzed by calculating the absolute and the relative frequencies of each question. It was observed that the acquisition of cassava in the municipalities of Plaza de la Revolución, El Salvador and San José de las Lajas in Cuba is done by purchase small quantities of fresh cassava for home consumption within one week, due to the extreme perishability of cassava, which limits consumers' ability to store fresh roots at home. The choice of cassava is made based on both skin colour (light brown) and pulp (white) and empirical knowledge about its ease of cooking, and that cassava is mostly consumed in boiled and fried forms up to four times a week in times where there is root market supply with the desirable culinary characteristics (cooking facility), that is, from September to December.

Essays in behavioral economics

In this work we conduct an experimental analysis on different behavioral models of economic choice. In particular, we analyze the role of overconfidence in shaping the beliefs of economics agents about the future path of their consumption or investment. We discuss the relevance of this bias in expectation formation both from a static and from a dynamic point of view and we analyze the effect of possible interventions aimed to achieve some policy goals. The methodology we follow is both theoretical and empirical. In particular, we make large use of controlled economic field experiments in order to test the predictions of the theoretical models we propose. In the second part of the thesis we discuss the role of cognition and personality in affecting economic preferences and choices. In this way we make a bridge between established psychological research and novel findings in economics. Finally, we conduct a field study on the role of incentives on education. We design different incentive schemes and we test, on randomized groups of students, their effectiveness in improving academic performance.

Three Essays in Spatial Economics

This work contributes to the field of spatial economics by embracing three distinct modelling approaches, belonging to different strands of the theoretical literature. In the first chapter I present a theoretical model in which the changes in urban system’s degree of functional specialisation are linked to (i) firms’ organisational choices and firms’ location decisions. The interplay between firms’ internal communication/managing costs (between headquarters and production plants) and the cost of communicating with distant business services providers leads the transition process from an “integrated” urban system where each city hosts every different functions to a “functionally specialised” urban system where each city is either a primary business center (hosting advanced business services providers, a secondary business center or a pure manufacturing city and all this city-types coexist in equilibrium.The second chapter investigates the impact of free trade on welfare in a two-country world modelled as an international Hotelling duopoly with quadratic transport costs and asymmetric countries, where a negative environmental externality is associated with the consumption of the good produced in the smaller country. Countries’ relative sizes as well as the intensity of negative environmental externality affect potential welfare gains of trade liberalisation. The third chapter focuses on the paradox, by which, contrary to theoretical predictions, empirical evidence shows that a decrease in international transport costs causes an increase in foreign direct investments (FDIs). Here we propose an explanation to this apparent puzzle by exploiting an approach which delivers a continuum of Bertrand- Nash equilibria ranging above marginal cost pricing. In our setting, two Bertrand firms, supplying a homogeneous good with a convex cost function, enter the market of a foreign country. We show that allowing for a softer price competition may indeed more than offset the standard effect generated by a decrease in trade costs, thereby restoring FDI incentives.

Essays in Health Economics

In the first chapter we develop a theoretical model investigating food consumption and body weight with a novel assumption regarding human caloric expenditure (i.e. metabolism), in order to investigate why individuals can be rationally trapped in an excessive weight equilibrium and why they struggle to lose weight even when offered incentives for weight-loss. This assumption allows the theoretical model to have multiple equilibria and to provide an explanation for why losing weight is so difficult even in the presence of incentives, without relying on rational addiction, time-inconsistency preferences or bounded rationality. In addition to this result we are able to characterize under which circumstances a temporary incentive can create a persistent weight loss. In the second chapter we investigate the possible contributions that social norms and peer effects had on the spread of obesity. In recent literature peer effects and social norms have been characterized as important pathways for the biological and behavioral spread of body weight, along with decreased food prices and physical activity. We add to this literature by proposing a novel concept of social norm related to what we define as social distortion in weight perception. The theoretical model shows that, in equilibrium, the effect of an increase in peers' weight on i's weight is unrelated to health concerns while it is mainly associated with social concerns. Using regional data from England we prove that such social component is significant in influencing individual weight. In the last chapter we investigate the relationship between body weight and employment probability. Using a semi-parametric regression we show that men and women employment probability do not follow a linear relationship with body mass index (BMI) but rather an inverted U-shaped one, peaking at a BMI way over the clinical threshold for overweight.

Afghanistan connection : heroin production, distribution, and consumption

Heroin prices are a reflection of supply and demand, and similar to any other market, profits motivate participation. The intent of this research is to examine the change in Afghan opium production due to political conflict affecting Europe’s heroin market and government policies. If the Taliban remain in power, or a new Afghan government is formed, the changes will affect the heroin market in Europe to a certain degree. In the heroin market, the degree of change is dependent on many socioeconomic forces such as law enforcement, corruption, and proximity to Afghanistan. An econometric model that examines the degree of these socioeconomic effects has not been applied to the heroin trade in Afghanistan before. This research uses a two-stage least squares econometric model to reveal the supply and demand of heroin in 36 different countries from the Middle East to Western Europe in 2008. An application of the two-stage least squares model to the heroin market in Europe will attempt to predict the socioeconomic consequences of Afghanistan opium production.

The Nature of Sustainable Consumption and How to Achieve it. Results from the Focal Topic "From Knowledge to Action – New Paths towards Sustainable Consumption"

Is the online trade with second-hand products changing individual consumer behaviour? What is the sustainability potential of this activity? How can daily energy-consuming routines at the workplace be changed? Do major changes in the course of people's lives represent opportunities to modify their consumer behaviour towards greater sustainability? These are only some of the research questions studied in the focal topic "From Knowledge to Action - New Paths towards Sustainable Consumption" which is funded by the German Federal Ministry of Education and Research (BMBF) as part of the "Social-ecological Research Programme" (SÖF). This book gives an insight into the research results of the ten project groups. Their diversity highlights that there is much more to "sustainable consumption" than the simple purchase of organic or fair trade products.In addition, overarching conceptual and normative issues were treated across the project groups of the focal topic. Developed collaboratively and moderated by the accompanying research project, the results of the synthesis process are also presented here, as for example how the sustainability of individual consumer behaviour can be evaluated,or which theories of action are particularly useful for specific consumer behaviour phenomena.