Institutional Framework and Poverty: A Transition Economy Perspective

Institutions, Poverty reduction, Growth

Measuring the Social Discount Rate under Uncertainty: A Methodology and Application

It is well recognised that the issue of the social rate of discount applies only to the gains from public investment that accrues to the public sector. When it comes to measurement, however, there is a problem: public investment in infrastructure and the like do not usually yield direct pecuniary returns to the public exchequer. Instead public capital may be plausibly argued to lead to increases in factor productivity in the private economy. This paper observes that government typically shares in the latter gains via the collection of tax revenues. Hence to the extent the risk discount rate should reflect the co-variability between the return from public investment and that of the market, we are led to measuring the risk premium implicit in various revenue flows. We apply the above methodology to the United States budget data for the period, 1950-2000, and show that the social risk premium is relatively small vis-à-vis the market. Consequently, the use of the risk free rate as the correct risk discount rate for public sector investment would involve only a minor error. The intuition here is that the portfolio of assets embedded in the state’s revenue claims provides additional diversification than is available through financial markets. Therefore, even investors holding well-diversified stock portfolios may legitimately view claims on state revenue as vehicles for further risk shifting.public discount rate, risk premium, aggregate risks, correlated risks, public investment

Inequality, Well-being and Institutions in Latin America and the Caribbean

This paper focuses on the role of “institutions” in the fight against poverty and inequality. Our view of institutions encompasses formal rules designed by polity (including those in the legal and economics sphere such as rules of property rights, contracts and liabilities) as well as informal rules (usually labelled social capital) that have emerged over the history of one’s civilisation. The inclusion of health, nutrition, and literacy indicators in defining well-being (or, non-income poverty à la capability approach of Amartya Sen) allows a rich discussion of policy interventions. While both orientations as to the concepts of poverty, inequality and institutions are expounded on a priori reasoning, empirical analysis with LAC data prove rewarding. Quality of institutions (measured by a composite variable called institutional capital, IC) turns out to be a key factor explaining well-being. Further where the level of income is also important to the explanation, the quantitative role of the institutional factor dominates that of the income variable. Within IC, political stability (or lack of violence) appeared to provide the more precise estimates in every case. Consequently we argue that the foremost policy interventions ought to be in the areas of building both adequate formal institutions, as well as creating an enabling environment for the informal institutions (such as social capital) to flourish and find their own roots. The principal focus of the policy debate must centre on the mutual interaction of market as well as non-market institutions in reducing poverty broadly speaking

The Efficiency Loss of Capital Income Taxation under Imperfect Loss Offset Provisions

The importance of capital loss offset provisions in a world of risk is well documented in the tax literature. However, the potential deadweight losses owing to imperfect offset has not been fully explored. This paper develops a framework whereby that investigation can be carried out and utilizes numerical simulations to investigate the size of potential losses. Results show that when the government and private sector are equally efficient in handling market risk, welfare losses owing to the absence of offset provisions could be substantial. Under plausible assumptions about attitudes towards risk and time preference, and with a capital income tax rate of forty percent, over sixty cents per dollar of tax revenue raised would be dissipated. In contrast, full loss offset would reduce that loss to approximately fourteen cents.capital income taxation, uncertainty, deadweight loss, loss offset provisions

Institutional Framework and Poverty: A Transition Economy Perspective

This paper focuses on the role of institutions in poverty alleviation, where both poverty and institutions are interpreted broadly. The broadening of the poverty notion is important at least from the policy perspective. Even if one were convinced that higher growth would reduce income poverty to an acceptable margin, there appears to be little concrete policy measures that one may offer so as to harness greater growth. Besides, the weight of the empirical evidence to date, if not squarely founded on the transition economies of the EEFSU region, is that reducing average poverty is not enough. Existing and possibly rising inequality would ensure that a great many would fall through the cracks, and not benefit from high growth, even if that was achievable. The non-income elements of poverty, on the other hand, are more directly open to influence by policy interventions such as the easing of micro credit and other public and private ventures in health, sanitation, literacy and numeracy fronts. Finally the modest amount of information available at our disposal indicates that the underlying strength of the institutions (economic, political and social) is possibly the single most agent of significance to bring about the alleviation of non-income poverty. There is a further possibility that the same institutional forces would also materially affect the income measure of poverty as well in a discernible fashion.

Dealing with hypertensive urgencies

Patients presenting with severe hypertension can often be alarming for house officers and family members. Systolic blood pressures > 180 mm Hg, with or without a diastolic blood pressure >120, have been known to progress to hypertensive emergencies.Includes bibliographical reference

Institutional framework and poverty: A transition economy perspective

This paper focuses on the role of ‘institutions’ in poverty alleviation, where both poverty and institutions are interpreted broadly. The broadening of the poverty notion is important at least from the policy perspective. Even if one were convinced that higher growth would reduce income poverty to an acceptable margin, there appears to be little concrete policy measures that one may offer so as to harness greater growth. Besides, the weight of the empirical evidence to date, if not squarely founded on the transition economies of the EEFSU region, is that reducing average poverty is not enough. Existing and possibly rising inequality would ensure that a great many would fall through the cracks, and not benefit from high growth, even if that was achievable. The non-income elements of poverty, on the other hand, are more directly open to influence by policy interventions such as the easing of microcredit and other public and private ventures in health, sanitation, literacy and numeracy fronts. Finally the modest amount of information available at our disposal indicates that the underlying strength of the institutions (economic, political and social) is possibly the single most agent of significance to bring about the alleviation of non-income poverty. There is a further possibility that the same institutional forces would also materially affect the income measure of poverty as well in a discernible fashion. – institutions ; poverty reduction ; growt

Institutional Framework and Poverty: A Transition Economy Perspective

This paper focuses on the role of institutions in poverty alleviation, where both poverty and institutions are interpreted broadly. The broadening of the poverty notion is important at least from the policy perspective. Even if one were convinced that higher growth would reduce income poverty to an acceptable margin, there appears to be little concrete policy measures that one may offer so as to harness greater growth. Besides, the weight of the empirical evidence to date, if not squarely founded on the transition economies of the EEFSU region, is that reducing average poverty is not enough. Existing and possibly rising inequality would ensure that a great many would fall through the cracks, and not benefit from high growth, even if that was achievable. The non-income elements of poverty, on the other hand, are more directly open to influence by policy interventions such as the easing of micro credit and other public and private ventures in health, sanitation, literacy and numeracy fronts. Finally the modest amount of information available at our disposal indicates that the underlying strength of the institutions (economic, political and social) is possibly the single most agent of significance to bring about the alleviation of non-income poverty. There is a further possibility that the same institutional forces would also materially affect the income measure of poverty as well in a discernible fashion

Case of the month

A 46 year old female, with a past medical history of hypertension and hypothyroidism, presented to the Emergency Department with abdominal pain. The pain was described as epigastric, sharp, 7/10 and radiating around to the back, bilaterally. The symptoms started approximately 2 days prior to presentation and had been unrelenting in severity and quality.Includes bibliographical reference

From the journals

Author states, "I have recently come across the following articles that should be of interest to Hospitalists.