Search

The extreme hunger and deprivation that recurs every year in the lean season in northern Bangladesh, locally known as the Monga, is mainly due to the malfunctioning local labor and credit markets. Using data covering 5600 extreme poor households in the Monga-prone region, we investigate in detail the role of social capital in securing employment and obtaining informal loans. Correcting for the endogeneity of social capital by the heteroscedasticity-based method proposed by Klein and Vella (J Econom 154:154–164, 2010) and also by the standard IV method for a robustness check, we document that social capital plays an important role in obtaining both wage- and self-employment. We also document a weak negative effect of social capital on obtaining informal loans. We explain our results in terms of the role of horizontal and vertical components of our measures of social capital in influencing different outcomes. [ABSTRACT FROM AUTHOR]

Using a new dataset of extreme rainfall covering 130 countries from 1979 to 2009, this paper investigates whether and how extreme rainfall-driven flooding affects democratic conditions. Our key finding indicates that extreme rainfall-induced flooding exerts two opposing effects on democracy. On one hand, flooding leads to corruption in the chains of emergency relief distribution and other post-disaster assistance, which in turn impels the citizenry to demand more democracy. On the other hand, flooding induces autocratic tendencies in incumbent regimes because efficient post-disaster management with no dissent, chaos or plunder might require government to undertake repressive actions. The net estimated effect is an improvement in democratic conditions. [ABSTRACT FROM AUTHOR]

Using a panel dataset of privatized cement firms in Turkey, this paper models and finds support for the simultaneous relationship between privatization and firm performance. It is found that favorable short-run performance, weak market potential, higher employment, lower socio-economic development, concentrated voter preferences, and weaker representation of right-wing parties in the firms’ locality delay the timing of privatization. The paper also finds that privatization increases output in the medium-term by reducing the labor stock and promoting the adoption of more advanced technology, such that production shifts from constant to decreasing returns to scale. [ABSTRACT FROM AUTHOR]