Volumen 46 Número 91 (2023)

Permanent URI for this collectionhttp://54.81.141.168/handle/123456789/195332

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Articles
  • Altitude and Distance Relationships with the Multidimensional Poverty Index: The case of Peru Delgado, Augusto; 1-21
  • Preferential Trade Agreements and Productivity: Evidence from Peru Tello, Mario D; Tello-Trillo, Cristina J; 22-38
  • Industrial Policies vs Public Goods under Asymmetric Information Hevia, Constantino; Loayza, Norman V; Meza-Cuadra, Claudia; 39-52
  • Small Firm Electricity Demand in Las Cruces, New Mexico, USA Fullerton, Jr., Thomas M; Pastor, Daniel J; Pokojovy, Michael; Yurachek, Andrew T; 53-71

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      Altitude and Distance Relationships with the Multidimensional Poverty Index: The case of Peru
      (Pontificia Universidad Católica del Perú, 2023-08-23) Delgado, Augusto
      This paper studies the potential association between two geographic indicators, distance and altitude, with the Multidimensional Poverty Index (MPI) for 1,874 district in Peru by using the National Census of 2017. We investigate whether higher altitude or longer distance is associated with higher MPI values. For this purpose, we use the distance of each district to three different potential spaces of reference. First, we use the shortest distance to the metropolitan area of Lima; second, the shortest distance to the capitals of coastal departments; third, and finally, the shortest distance to the sea. We obtain three relevant results. First, we find evidence that altitude is statistically significant and positive associated with variation of MPI among districts. Second, the distance with respect to the sea appears to be more relevant to explaining differences in MPI than the distance to the Metropolitan area or coastal departmental capitals. Finally, we find evidence of spatial externalities of MPI across districts which also seem to be stronger than the direct effect of altitude and distance.
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      Industrial Policies vs Public Goods under Asymmetric Information
      (Pontificia Universidad Católica del Perú, 2023-08-23) Hevia, Constantino; Loayza, Norman V.; Meza-Cuadra, Claudia
      This paper presents an analytical framework that captures the informational problems and tradeoffs that policy makers face when choosing between public goods (e.g., infrastructure) and industrial policies (e.g., firm or sector-specific subsidies). The paper first provides a discussion of the literature on industrial policies. It then presents an illustrative model, where the economy consists of a set of firms that vary by productivity and a government that can support firms through general or targeted expenditures. The paper examines the cases of full and asymmetric information on firm productivity. Working under full information, it describes the first-best allocation of government resources among firms according to their productivity. It then introduces uncertainty by restricting information regarding firm productivity to be private to the firm. The paper develops an optimal contract (which replicates the first-best) consisting of a tax-based mechanism that induces firms to reveal their true productivity. As this requires high government capacity, the paper considers other simpler policies, one of which is the provision of public goods to all firms. The paper concludes that providing public goods is likely to dominate industrial policies under most scenarios, especially when government capacity is low.
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      Preferential Trade Agreements and Productivity: Evidence from Peru
      (Pontificia Universidad Católica del Perú, 2023-08-23) Tello, Mario D.; Tello-Trillo, Cristina J.
      This paper analyzes the impact of reducing output tariffs (i.e., domestic tariffs on import of final goods) and input tariffs (i.e., domestic tariffs on imports of intermediate goods) on total factor productivity growth of Peruvian manufacturing firms. Peru’s annual survey of manufacturing data from 2003–2017 is used to explore the reduction of tariffs during three preferential trade agreements: United States, China, and the European Union. Lower output tari˙s could decrease productivity by reducing firm’s market share or could increase productivity by inducing tougher import competition, while cheaper imported inputs can raise productivity via learning, variety, and quality effects. The results show that a decrease in output tariffs decreases Peruvian firms’ productivity growth for non-exporters (i.e., domestic firms producing goods that are also imported) while increasing productivity growth for exporters (i.e., domestic firms producing export goods). In contrast, a reduction in input tariffs increases firm productivity for all firms.
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      Small Firm Electricity Demand in Las Cruces, New Mexico, USA
      (Pontificia Universidad Católica del Perú, 2023-08-23) Fullerton, Jr., Thomas M.; Pastor, Daniel J.; Pokojovy, Michael; Yurachek, Andrew T.
      Research examining small commercial and industrial electricity usage patterns have historically received less attention than residential electricity consumption patterns. This study examines electricity as an input to small firm commercial and industrial (CIS) production in Las Cruces, the second largest metropolitan economy in the state of New Mexico, using annual frequency data from 1978 to 2018. Those data include labor, per capita personal income, price measures for electricity and natural gas, and weather variables. The long-run and short-run elasticities of the data are then estimated using an autoregressive distributed lag model (ARDL). In the long-run, the CIS derived-demand curve is found to be upward sloping, and Las Cruces CIS customers use natural gas as a complementary input. Real per capita income is also found to have a positive impact in the long-run, while weather impacts are found to be ambiguous. In the short-run, the Las Cruces CIS derived-demand curve is downward sloping, CIS customers use natural gas as a substitute factor, and weather extremes are found to be positively correlated with small firm electricity usage.