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40061. The Unaffordable Arsenal: Reducing the Costs of the Bloated U.S. Nuclear Stockpile

Author:
Tom Z. Collina
Publication Date:
10-2014
Content Type:
Special Report
Institution:
Arms Control Association
Abstract:
The United States currently plans to spend some $355 billion to maintain and rebuild its Cold War-era nuclear arsenal over the next decade, even as the overall U.S. defense budget is declining and U.S. military planners and the president have determined that the United States can deter nuclear threats against the United States and its allies with far fewer nuclear weapons. This report argues that the increasingly high cost of nuclear weapons, combined with shrinking budgets and stockpiles, should compel the executive branch, Congress, and the American public to rethink current plans to rebuild U.S. nuclear forces in the years ahead. The Unaffordable Arsenal outlines common sense ways to save roughly $70 billion over the next decade across all three legs of the triad by scaling-back, delaying, and/or deferring expensive new delivery systems and by taking a more disciplined, straightforward approach to nuclear warhead life-extensions and refurbishments.
Topic:
Arms Control and Proliferation, Nuclear Weapons, and Defense Spending
Political Geography:
North America and United States of America

40062. Building Resilience against Adverse Shocks: What are the determinants of vulnerability and resilience?

Author:
Lykke E. Andersen and Marcelo Cardona
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper proposes a simple way to measure livelihood diversification, and uses this measure together with income levels to classify Bolivian households by level of vulnerability. Regression analysis is then carried out to determine the factors and strategies associated with high resilience or high vulnerability. The results show that the single most important strategy for resilience is to have a working and income earning spouse in the household. This is still much too uncommon in Bolivia. A second important factor is the age of the head of household. Young families are considerably more vulnerable than more mature families, as the former have not had time to build up assets (physical, human and social capital) that can provide alternative sources of livelihood. One of the most surprising results of the study is that urban households are considerably more vulnerable to adverse shocks than rural households, whereas gender and ethnicity are irrelevant. The paper finishes with a comprehensive list of policy recommendations.
Topic:
Diversification, Resilience, Livelihoods, Vulnerability, and External Shocks
Political Geography:
South America and Bolivia

40063. Information technologies and provision of national identification cards by the Bolivian Police: Evidence from two randomized natural fields experiments

Author:
Alberto Chong, Gustavo Machicado Salas, and Monica Yanez-Pagans
Publication Date:
03-2014
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper investigates the potential of information technologies to improve public service delivery and empower citizens in the context of two unusual randomized natural experiments occurring within one particular bureaucratic process: the renewal of a national identification card by the Bolivian Police. The first experiment arises from the random assignment of both police officers and applicants to a manual or digital renewal process, which is identical in all aspects except that the digital renewal process makes use of information technologies as part of the renewal process. The second experiment arises by the existence of technical failures within the digital renewal process, which allows police officers to change from the digital to the manual renewal process randomly across renewal day. The efficiency of public service delivery is measured in terms of both renewal success rates (which average to a strikingly low rate of 72 percent in our sample) and time-it-takes to renew an identification card. The causal effect of information technologies on public service delivery is estimated using two different identification strategies. In the first one, applicant-police officer pairs randomly assigned to each one of these two renewal processes are compared after controlling for renewal day fixed effects. In the second one, applicant-police officer pairs randomly assigned to the digital process are compared to those randomly assigned to this same process but who experienced a technical failure within the process, which allows to directly control for unobserved heterogeneity at the police officer level. We find that information technologies significantly improve the quality of public service delivery. Applicants randomly assigned to the digital renewal process are on average 12 percentage points more likely to complete the renewal process as compared to those randomly assigned to the manual one. Further, successful applicants randomly assigned to the digital process take on average 31 percent less time to complete the process as compared to those randomly assigned to the manual one. Lastly, we find that information technologies significantly lower barriers in access to national identification cards by promoting a more equitable provision across the population. We discuss several channels through which technologies might be improving efficiency and promoting equity within this particular bureaucratic process. Overall, our findings suggest that information technologies might be achieving these goals by introducing efficiencies (such as reducing administrative shortcomings and transaction costs), and limiting the exercise of discretion by police officers within the renewal process.
Topic:
Science and Technology, Police, Bureaucracy, and Information Technology
Political Geography:
South America and Bolivia

40064. Wage Differentials: Trade Openness and Wage Bargaining

Author:
Gustavo Gonzaga, Beatriz Muriel, and Cristina Terra
Publication Date:
04-2014
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
We build a theoretical model that incorporates unionization in the labor market into a Heckscher-Ohlin-Samuelson (HOS) framework to investigate the impact of unionization on the Stolper-Samuelson Theorem. To capture the American economy case, we assume that unskilled labor in the manufactured goods sector is unionized, and that sector is intensive in skilled labor, and that trade liberalization increases the relative price of manufactured goods. In the HOS model, trade liberalization induces a reallocation of production towards the sector that uses intensively the country’s most abundant factor. The resulting change in relative labor demand impacts wage bargaining in the unionized sector, which, in turn, has a dampening effect on the Stolper-Samuelson effect. Moreover, wages of unionized workers are even less responsive to trade liberalization. Through traditional mandated-wages regressions, we show that skilled-wage differentials changes were less pronounced among more unionized sectors in the U.S. economy for the 1979-1990 period.
Topic:
Labor Issues, Economy, Manufacturing, Trade, and Wages
Political Geography:
Global Focus

40065. Globalization, Peace & Stability, Governance, and Knowledge Economy

Author:
Voxi Amavilah, Simplice A. Asongu, and Antonio Rodríguez Andrés
Publication Date:
08-2014
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
A previous analysis of the impact of formal institutions on the knowledge economy of 22 MiddleEastern and Sub-Sahara African countries during the 1996-2010 time period concluded that formal institutions were necessary, but inadequate, determinants of the knowledge economy. To extend that study, this paper claims that globalization induces peace and stability, which affects governance and through governance the knowledge economy. The claim addresses one weakness of previous research that did not consider the effects on the knowledge economy of globalization. We model the proposition as a three-stage process in four hypotheses, and estimate each hypothesis using robust estimators that are capable of dealing with the usual statistical problems without sacrificing economic relevance and significance. The results indicate that globalization has varying effects on peace and stability, and peace and stability affect governance differently depending on what kind of globalization induces it. For instance, the effects on governance induced by globalization defined as trade are stronger than those resulting from globalization taken to be foreign direct investment. Hence, we conclude that foreign direct investment is not a powerful mechanism for stimulating and sustaining the knowledge economy in our sample of countries. However, since globalization-induced peace and stability have both positive and negative effects on governance simultaneously, we also conclude that while the prospect for knowledge economy in African countries is dim, it is still realistic and attainable as long as these countries continue to engage in the kind of globalization that does indeed induce peace and stability. We further conclude that there is a need for a sharper focus on economic and institutional governance than on general governance as one possible extension of this paper.
Topic:
Globalization, Governance, Political stability, Peace, and Knowledge Economy
Political Geography:
Middle East, Global Focus, and Sub-Saharan Africa

40066. Gender, Ethnicity and Climate Change in Mexico: An analysis of vulnerability and resilience based on household surveys

Author:
Lykke E. Andersen, Anna Sophia Doyle, Dorte Verner, and Manfred Wiebelt
Publication Date:
11-2014
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper analyzes gender and ethnic differences in vulnerability and resilience to external shocks and stresses in Mexico. Vulnerability and resilience are measured by a combination of the level of household incomes per capita and the degree of diversification of these incomes. Thus, households which have poorly diversified incomes falling below the national poverty line are classified as highly vulnerable, whereas households which have highly diversified incomes above the poverty line are classified as highly resilient. The analysis shows that both gender and ethnicity are almost irrelevant as explanatory factors of vulnerability whereas education levels, dependency ratios and the age of the head of household are very important. Determining the true factors that affect vulnerability is important in order to devise effective policies to reduce vulnerability.
Topic:
Ethnicity, Diversification, Resilience, Livelihoods, Vulnerability, Gender, and External Shocks
Political Geography:
Latin America and Mexico

40067. Gender and Climate Change in Latin America: An analysis of vulnerability, adaptation and resilience based on household surveys

Author:
Lykke E. Andersen, Dorte Verner, and Manfred Wiebelt
Publication Date:
11-2014
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper analyzes gender differences in vulnerability and resilience to shocks, including climate change and climate variability, for Peru, Brazil and Mexico, which together account for more than half the population in Latin America. Vulnerability and resilience indicators are measured by a combination of the level of household incomes per capita and the degree of diversification of these incomes. Thus, households which simultaneously have incomes which are below the national poverty line and which are poorly diversified (Diversification Index below 0.5) are classified as highly vulnerable, whereas households which have highly diversified incomes above the poverty line are classified as highly resilient. The analysis shows that female headed households in all three countries tend to be less vulnerable and more resilient than male headed households, despite the fact that the former usually have lower education levels.
Topic:
Diversification, Resilience, Livelihoods, Vulnerability, and External Shocks
Political Geography:
Brazil, Latin America, Mexico, and Peru

40068. Resistance to the Regulation of Common Resources in Rural Tunisia

Author:
Xiaoying Liu, Mare Sarr, and Timothy M. Swanson
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
We examine the effect of the introduction of uniform water-charging for aquifer management and provide evidence using a survey-based choice experiment of agricultural water users in rural Tunisia. Theoretically, we show that the implementation of the proposed second-best regulation would result both in efficiency gains and in distributional effects in favour of small landholders. Empirically, we find that resistance to the introduction of an effective water-charging regime is greatest amongst the largest landholders. Resistance to the regulation of common resources may be rooted in the manner in which heterogeneity might determine the distributional impact of different management regimes.
Topic:
Natural Resources, Water, and Regulation
Political Geography:
North Africa and Tunisia

40069. Multinational Firms and the Internationalization of Green R&D: A Review of the Evidence and Policy Implications

Author:
Joëlle Noailly and David Ryfisch
Publication Date:
12-2014
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper presents novel empirical evidence on the internationalization of green R&D by multinational firms (MNCs), as measured by patents data. Using data on inventors’ addresses for the set of 1,200 MNCs firms patenting in green technologies over the 2004-2009 period, we find that about 17% of green patents result from MNCs R&D investments conducted outside their home countries. MNCs tend to locate their foreign green R&D activities in other OECD markets and in China, in particular in lightings and solar technologies. The empirical analysis reveals that the probability of conducting green R&D abroad increases with the host country’s stringency of environmental regulation, market size and (green) R&D intensity. Also, relatively lower wages for scientists and engineers, and stronger protection for intellectual property rights in the host country increase the likelihood for MNCs to offshore green R&D. The paper concludes by discussing the policy implications of this changing global innovation landscape.
Topic:
Green Technology, Multinational Corporations, and Research and Development
Political Geography:
Global Focus

40070. Estimating the demand for tap water quality: Avertive expenditures on substitutes for hardness and aesthetic quality

Author:
Bruno Lanz and Allan Provins
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Centre for International Environmental Studies, The Graduate Institute (IHEID)
Abstract:
This paper uses avertive expenditures to estimate the demand for qualitative aspects of tap water supply. We focus on two characteristics that are of importance for water consumers: water hardness and aesthetic quality in terms of taste, smell and appearance. To elicit expenditures on substitute products, we survey more than 4,500 households in England and Wales. For water hardness, around 14% of households employ at least one water softener device, with mean and median yearly expenditure around £95 and £50 respectively. Substitutes for the aesthetic quality of tap water mainly include bottled water, water filter devices, or adding squash or cordial before drinking. Overall 39% of respondents report at least one such behaviour, with mean and median yearly expenditure around £92 and £60 respectively. These are substantial amounts given a yearly average household bill of £186 for water services. Matching household data to highly disaggregated records on regional water hardness, our econometric analysis suggests that a 10% reduction in water hardness is associated with a £1.50 reduction in avertive expenditures. We also exploit geographic variation in the aesthetic characteristics of tap water, and correlate self-reported quality ratings to expenditures. We find that a one-fifth increase in the rating of water taste is associated with a £19 reduction in yearly expenditures.
Topic:
Water, Economy, Demand, and Spending
Political Geography:
Global Focus