Land reform, poverty reduction and growth : evidence from India

In recent times there has been a renewed interest in relationships between redistribution, growth and welfare. Land reforms have been central to strategies to improve the asset base of the poor in developing countries thought their effectiveness has been hindered by political constraints on implementation. In this paper we use panel data on the sixteen main Indian states from 1958 to 1992 to consider whether the large volume of land reforms as have been legislated have had an appreciable impact on growth and poverty. The evidence presented suggests that land reforms do appear to be associated with poverty reduction

Estimating the peace dividend: the impact of violence on house prices in Northern Ireland

This paper exploits data on the pattern of violence across regions and over time to estimate the impact of the peace process in Northern Ireland on house prices. We begin with a linear model that estimates the average treatment effect of a conflict-related killing on house prices .showing a negative correlation between house prices and killings. We then develop an approach based on an economic model where the parameters of the statistical process are estimated for a Markov switching model where conflict and peace are treated as a latent state. From this, we are able to construct a measure of the discounted number of killings which is updated in the light of actual killings. This model naturally suggests a heterogeneous effect of killings across space and time which we use to generate estimates of the peace dividend. The economic model suggests a somewhat different pattern of estimates to the linear model. We also show that there is some evidence of spillover effects of violence in adjacent regions.

The de Soto Effect

This paper explores the consequences of creating and improving property rights so thatfixed assets can be used as collateral. This has become a cause célèbre of Hernando de Sotowhose views are influential in debates about policy reform concerning property rights.Hence, we refer to the economic impact of such reforms as the de Soto effect. We explore thelogic of the argument for credit contracts, both in isolation, and in market equilibrium. Weshow that the impact will vary with the degree of market competition. Where competition isweak, it is possible that borrowers will be worse off when property rights improve. Wediscuss the implications for optimal policy and the political economy of policy reform.

Property Rights and EconomicDevelopment

This chapter develops a unified analytical framework, drawing on and extending theexisting literature on the subject, for studying the role of property rights in economicdevelopment. It addresses two fundamental and related questions concerning therelationship between property rights and economic activity. (i) What are themechanisms through which property rights affect economic activity? (ii) What arethe determinants of property rights? In answering these, it surveys some of the mainempirical and theoretical ideas from the extensive literature on the topic.Property rights, Economic development.

State Capacity, Conflict and Development

We report on an on-going project, which asks a number of questions relevant to thestudy of state capacity. What are the main economic and political determinants ofthe state's capacity to raise revenue and support private markets? How do risks ofviolent conflict affect the incentives to invest in state building? Does it matterwhether conflicts are external or internal to the state? When are large statesassociated with higher income levels and growth rates than small states? Whatrelations should we expect between resource rents, civil wars and economicdevelopment? The paper is organized into three main sections: 1. The origins of statecapacity, 2. Sate capacity and the genius of taxation, and 3. State capacity and thestrategy of conflict. Each of these begins with a specific motivation. A simple modelis formulated to analyze the determinants of state capacity in the first section, andmodified to address the new issues that arise in subsequent sections. The theoreticalresults are summarized in a number of propositions. We discuss the implications ofthe theory, comment on its relation to existing literature, and briefly mention someempiric applications.state capacity, development

Judicial accountability and economic policy outcomes: evidence from employment discrimination charges

How and whether judges should be held accountable is a key issue in the design of a legal system. Thirty-seven of the forty-eight continental states use some method of judicial selection which involves a direct role for citizens in selecting or re-appointing the judiciary. We identify two theoretical reasons why the method used for choosing judges is important – (i) a selection effect if the competence or underlying preferences of judges is affected, (ii) an incentive effect if the judges who are chosen behave differently because of the method used for their reappointment. This paper uses data from the U.S. to investigate whether judicial selection methods affect the number of employment discrimination charges filed for the period 1973- 2000. Our results show that states that appoint their judges have lower levels of discrimination charges compared to those that use some form of election. The results appear to be driven by states where judges being subject to re-election incentives rather than because judges with different preferences/competences are being chosen.

The principles of targeting

In response to calls for finer targeting of spending to alleviate poverty in developing countries, this paper discusses the principles of targeting. The ideal solution is that all transfers go to the poor. However, this is unrealizable because of three factors: (a) the costs of administration and data collection; (b) individual responses and incentive effects; and (c) considerations of political economy. The best strategy will probably lie somewhere between the two extremes - the ideal solution and universal intervention - mediated by these three considerations. Two types of targeting, although short of the ideal may be useful in certain contexts. With statistical targeting (using indicators), programs target key indicators such as a region, occupation, or the crops grown. Self-targeting uses differences in needs, tastes, or incomes as a device for achieving self-selection by only the poor into poverty alleviation programs. Real progress in understanding how targeting works best can be made only through country specific research that quantifies the costs and benefits of targeting using data that has increasingly become available for many developing countries - and research that is sensitive to the political realities of reform.Safety Nets and Transfers,Services&Transfers to Poor,Rural Poverty Reduction,Poverty Monitoring&Analysis,Environmental Economics&Policies

The Incidence of Civil War: Theory and Evidence

This paper studies the incidence of civil war over time. We put forward a canonical model of civil war, which relates the incidence of conflict to circumstances, institutions and features of the underlying economy and polity. We use this model to derive testable predictions and to interpret the cross-sectional and times-series variations in civil conflict. Our most novel empirical finding is that higher world market prices of exported, as well as imported, commodities are strong and significant predictors of higher within-country incidence of civil war.