Era Dabla-norris - Academia.edu (original) (raw)
Papers by Era Dabla-norris
Journal of Development Economics, 1999
In this paper we collect detailed information on the budget institutions of Latin American countr... more In this paper we collect detailed information on the budget institutions of Latin American countries. We classify these institutions on a "hierarchical"/"collegial" scale, as a function of the existence of constraints on the deficit, and voting rules. We show that "hierarchical" and transparent procedures have been associated with more fiscal discipline in Latin America in the eighties and early nineties.
This paper examines monetary policy transmission in Armenia in light of the authorities' inte... more This paper examines monetary policy transmission in Armenia in light of the authorities' intention to shift to an inflation-targeting regime over the medium term. We find that the capability of monetary policy to influence economic activity and inflation is still limited, as important channels of monetary transmission are not fully functional. In particular, the interest rate channel remains weak, even
This paper analyzes the pervasiveness and persistence of rent seeking, misgovernance, and public ... more This paper analyzes the pervasiveness and persistence of rent seeking, misgovernance, and public sector inefficiency in many developing and transition economies. We formalize evidence from country experiences and empirical studies into a stylized analytical framework that reflects realistic constraints faced in these countries. Our work departs from the standard economic literature by assuming that (i) the relationship between the government
India Review, 2015
ABSTRACT India’s unprecedented growth since the mid-1990s and increased macroeconomic resilience ... more ABSTRACT India’s unprecedented growth since the mid-1990s and increased macroeconomic resilience has been against the backdrop of wide-ranging reforms, growing trade and financial integration, buoyant external demand, and ample global liquidity. Looking ahead, like most emerging markets, India is likely to face stronger headwinds, with less buoyant external financing conditions, and potentially lower growth in advanced markets. This raises questions about the sustainability of growth, sources of future growth, and reform priorities for restoring the momentum of convergence to higher income levels. Using the “distance to frontier” approach, the analysis in this article finds that the sizeable convergence gaps with respect to advanced and other emerging market economies imply considerable opportunities for catch-up. But structural transformation and convergence to higher living standards in India will be conditional on policy and institutional reforms to alleviate market and government failures, as well as on the ability of labor and capital to move toward higher-productivity sectors and activities.
Journal of International Commerce, Economics and Policy, 2014
ABSTRACT This paper examines the supply side drivers of growth in emerging market and developing ... more ABSTRACT This paper examines the supply side drivers of growth in emerging market and developing economics (EMDEs) during the past decades and discusses the role of productivity-enhancing reforms in bolstering future growth prospects. It examines aggregate and sectoral productivity trends including around reform episodes to draw broad policy lessons on what policies are needed to increase productivity. Findings suggest appropriate policies need to be tailored to the stage of economic development and to other pertinent features that give rise to the heterogeneous experiences of EMDEs.
IMF Working Papers, 2011
This paper develops a cost-benefit approach that helps to quantify the optimal level of internati... more This paper develops a cost-benefit approach that helps to quantify the optimal level of international reserves in low-income countries, focusing on the role of reserves in preventing and mitigating absorption drops triggered by large external shocks. The approach is applied to a sample of 49 LICs over the period 1980-2008 to yield estimates of the likelihood and severity of a crisis. The calibration results suggest that the standard metric of three months of imports is inadequate for countries with fixed exchange rate regimes. The results also highlight the role of overall policy frameworks and availability of Fund-support in determining optimal reserve levels, raising questions about the uniform applicability of standard rules of thumb across countries. JEL Classification Numbers: O11, F31, O24
IMF Working Papers, 2010
The views expressed in this Working Paper are those of the author(s) and do not necessarily repre... more The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
IMF Working Papers, 2006
The views expressed in this Working Paper are those of the author(s) and do not necessarily repre... more The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper analyzes the pervasiveness and persistence of rent seeking, misgovernance, and public sector inefficiency in many developing and transition economies. We formalize evidence from country experiences and empirical studies into a stylized analytical framework that reflects realistic constraints faced in these countries. Our work departs from the standard economic literature by assuming that (i) the relationship between the government and its population is regulated through an implicit social consensus; (ii) traditional incentives (in the form of public expenditure controls, sanctions, or monetary incentives to perform) are, for various reasons, ineffective in many of these countries; and (iii) the persistence of high corruption reflects a very stable equilibrium, which in turn reflects the fact that several constraints are simultaneously binding. We argue that, when traditional incentives fail, transparency-information provision and disclosure, together with the means to use it-by relaxing different constraints, can contribute to improving public outcomes. JEL Classification Numbers: D73, K42, O17
IMF Working Papers, 2004
The views expressed in this Working Paper are those of the author(s) and do not necessarily repre... more The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
This paper develops a growth model with specialized goods where inefficient and corrupt bureaucra... more This paper develops a growth model with specialized goods where inefficient and corrupt bureaucracies interact with the provision of public investment services in affecting the productivity of private capital, specialization, and growth. The model provides potential explanations for the contradictory empirical results on the effects of public investment found in the literature as well as for the role of the
Review of Development Economics, 2004
The authors formalize the role of legal infrastructure in economic development in a general-equil... more The authors formalize the role of legal infrastructure in economic development in a general-equilibrium model with endogenously determined property rights enforcement. The mutual importance of property rights protection and market production is illustrated by the model's multiplicity of equilibria. In one equilibrium, property rights are enforced, and market activity unhampered. In the other, property rights are not enforced, discouraging economic activity, which leaves the economy without the resources and the incentives to enforce property rights. Even identically endowed economies may therefore find themselves in very different equilibria.
Journal of Development Economics, 2008
The views expressed in this Working Paper are those of the author(s) and do not necessarily repre... more The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
Journal of Development Economics, 1999
In this paper we collect detailed information on the budget institutions of Latin American countr... more In this paper we collect detailed information on the budget institutions of Latin American countries. We classify these institutions on a "hierarchical"/"collegial" scale, as a function of the existence of constraints on the deficit, and voting rules. We show that "hierarchical" and transparent procedures have been associated with more fiscal discipline in Latin America in the eighties and early nineties.
IMF Staff Papers, 2008
This paper relies on rich firm-level data on transition economies to examine the role of informal... more This paper relies on rich firm-level data on transition economies to examine the role of informality as an important channel through which regulatory and other policy constraints affect firm growth. We find that firms reduce their formal operations with greater tax and regulatory burdens, but increase them with better enforcement quality. In terms of firm growth, we find a differential impact of regulatory burden and enforcement quality on formal and informal firm growth. In particular, we find that growth in formal firms is negatively affected by both tax and financing constraints, whereas these constraints are insignificant for growth in informal firms. Moreover, formal firm growth improves with better enforcement, while informal firm growth is constrained by organized crime, pointing to informal firms' inability to take full advantage of the legal and judicial systems. Finally, we find that an interaction term between a countrywide measure of the rule of law and formality is positive, suggesting that better rule of law improves formal firm growth. [JEL L25, O17, O43, P26, P37] IMF Staff Papers (2008) 55, 50-82.
IMF Working Paper No. 05/43, Jan 1, 2005
Journal of Development Economics, 1999
In this paper we collect detailed information on the budget institutions of Latin American countr... more In this paper we collect detailed information on the budget institutions of Latin American countries. We classify these institutions on a "hierarchical"/"collegial" scale, as a function of the existence of constraints on the deficit, and voting rules. We show that "hierarchical" and transparent procedures have been associated with more fiscal discipline in Latin America in the eighties and early nineties.
This paper examines monetary policy transmission in Armenia in light of the authorities' inte... more This paper examines monetary policy transmission in Armenia in light of the authorities' intention to shift to an inflation-targeting regime over the medium term. We find that the capability of monetary policy to influence economic activity and inflation is still limited, as important channels of monetary transmission are not fully functional. In particular, the interest rate channel remains weak, even
This paper analyzes the pervasiveness and persistence of rent seeking, misgovernance, and public ... more This paper analyzes the pervasiveness and persistence of rent seeking, misgovernance, and public sector inefficiency in many developing and transition economies. We formalize evidence from country experiences and empirical studies into a stylized analytical framework that reflects realistic constraints faced in these countries. Our work departs from the standard economic literature by assuming that (i) the relationship between the government
India Review, 2015
ABSTRACT India’s unprecedented growth since the mid-1990s and increased macroeconomic resilience ... more ABSTRACT India’s unprecedented growth since the mid-1990s and increased macroeconomic resilience has been against the backdrop of wide-ranging reforms, growing trade and financial integration, buoyant external demand, and ample global liquidity. Looking ahead, like most emerging markets, India is likely to face stronger headwinds, with less buoyant external financing conditions, and potentially lower growth in advanced markets. This raises questions about the sustainability of growth, sources of future growth, and reform priorities for restoring the momentum of convergence to higher income levels. Using the “distance to frontier” approach, the analysis in this article finds that the sizeable convergence gaps with respect to advanced and other emerging market economies imply considerable opportunities for catch-up. But structural transformation and convergence to higher living standards in India will be conditional on policy and institutional reforms to alleviate market and government failures, as well as on the ability of labor and capital to move toward higher-productivity sectors and activities.
Journal of International Commerce, Economics and Policy, 2014
ABSTRACT This paper examines the supply side drivers of growth in emerging market and developing ... more ABSTRACT This paper examines the supply side drivers of growth in emerging market and developing economics (EMDEs) during the past decades and discusses the role of productivity-enhancing reforms in bolstering future growth prospects. It examines aggregate and sectoral productivity trends including around reform episodes to draw broad policy lessons on what policies are needed to increase productivity. Findings suggest appropriate policies need to be tailored to the stage of economic development and to other pertinent features that give rise to the heterogeneous experiences of EMDEs.
IMF Working Papers, 2011
This paper develops a cost-benefit approach that helps to quantify the optimal level of internati... more This paper develops a cost-benefit approach that helps to quantify the optimal level of international reserves in low-income countries, focusing on the role of reserves in preventing and mitigating absorption drops triggered by large external shocks. The approach is applied to a sample of 49 LICs over the period 1980-2008 to yield estimates of the likelihood and severity of a crisis. The calibration results suggest that the standard metric of three months of imports is inadequate for countries with fixed exchange rate regimes. The results also highlight the role of overall policy frameworks and availability of Fund-support in determining optimal reserve levels, raising questions about the uniform applicability of standard rules of thumb across countries. JEL Classification Numbers: O11, F31, O24
IMF Working Papers, 2010
The views expressed in this Working Paper are those of the author(s) and do not necessarily repre... more The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
IMF Working Papers, 2006
The views expressed in this Working Paper are those of the author(s) and do not necessarily repre... more The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper analyzes the pervasiveness and persistence of rent seeking, misgovernance, and public sector inefficiency in many developing and transition economies. We formalize evidence from country experiences and empirical studies into a stylized analytical framework that reflects realistic constraints faced in these countries. Our work departs from the standard economic literature by assuming that (i) the relationship between the government and its population is regulated through an implicit social consensus; (ii) traditional incentives (in the form of public expenditure controls, sanctions, or monetary incentives to perform) are, for various reasons, ineffective in many of these countries; and (iii) the persistence of high corruption reflects a very stable equilibrium, which in turn reflects the fact that several constraints are simultaneously binding. We argue that, when traditional incentives fail, transparency-information provision and disclosure, together with the means to use it-by relaxing different constraints, can contribute to improving public outcomes. JEL Classification Numbers: D73, K42, O17
IMF Working Papers, 2004
The views expressed in this Working Paper are those of the author(s) and do not necessarily repre... more The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
This paper develops a growth model with specialized goods where inefficient and corrupt bureaucra... more This paper develops a growth model with specialized goods where inefficient and corrupt bureaucracies interact with the provision of public investment services in affecting the productivity of private capital, specialization, and growth. The model provides potential explanations for the contradictory empirical results on the effects of public investment found in the literature as well as for the role of the
Review of Development Economics, 2004
The authors formalize the role of legal infrastructure in economic development in a general-equil... more The authors formalize the role of legal infrastructure in economic development in a general-equilibrium model with endogenously determined property rights enforcement. The mutual importance of property rights protection and market production is illustrated by the model's multiplicity of equilibria. In one equilibrium, property rights are enforced, and market activity unhampered. In the other, property rights are not enforced, discouraging economic activity, which leaves the economy without the resources and the incentives to enforce property rights. Even identically endowed economies may therefore find themselves in very different equilibria.
Journal of Development Economics, 2008
The views expressed in this Working Paper are those of the author(s) and do not necessarily repre... more The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
Journal of Development Economics, 1999
In this paper we collect detailed information on the budget institutions of Latin American countr... more In this paper we collect detailed information on the budget institutions of Latin American countries. We classify these institutions on a "hierarchical"/"collegial" scale, as a function of the existence of constraints on the deficit, and voting rules. We show that "hierarchical" and transparent procedures have been associated with more fiscal discipline in Latin America in the eighties and early nineties.
IMF Staff Papers, 2008
This paper relies on rich firm-level data on transition economies to examine the role of informal... more This paper relies on rich firm-level data on transition economies to examine the role of informality as an important channel through which regulatory and other policy constraints affect firm growth. We find that firms reduce their formal operations with greater tax and regulatory burdens, but increase them with better enforcement quality. In terms of firm growth, we find a differential impact of regulatory burden and enforcement quality on formal and informal firm growth. In particular, we find that growth in formal firms is negatively affected by both tax and financing constraints, whereas these constraints are insignificant for growth in informal firms. Moreover, formal firm growth improves with better enforcement, while informal firm growth is constrained by organized crime, pointing to informal firms' inability to take full advantage of the legal and judicial systems. Finally, we find that an interaction term between a countrywide measure of the rule of law and formality is positive, suggesting that better rule of law improves formal firm growth. [JEL L25, O17, O43, P26, P37] IMF Staff Papers (2008) 55, 50-82.
IMF Working Paper No. 05/43, Jan 1, 2005