Economic Development

The Unbanked: Evidence from Indonesia

The Unbanked: Evidence from Indonesia
October   World Bank Economic Review 22(3): 517-537

Morduch, J. & Jonston Jr., D.
10/01/2008

To analyze the prospects for expanding financial access to the poor, bank professionals assessed 1,438 households in six provinces in Indonesia to judge their creditworthiness. About 40 percent of poor households were judged creditworthy according to the criteria of Indonesia's largest microfinance bank, but fewer than 10 percent had recently borrowed from a microbank or formal lender. Possessing collateral appeared as a minor determinant of creditworthiness, in keeping with microfinance innovations. Although these households were judged able to service loans reliably, most desired small loans. Calculations show that the bank, given its current fee structure and banking practices, would lose money when lending at the scales desired. So, while innovations have helped to extend financial access, it remains difficult to lend in small amounts and cover costs.

Equity and Accountability: The Impact of State Accountability Systems on School Finance

Equity and Accountability: The Impact of State Accountability Systems on School Finance
Journal of Public Budgeting & Finance, 28 (3): 1-22

Rubenstein, R. & Ballal, S., Stiefel, L., Schwartz, A.E.
01/01/2008

Using an 11-year panel data set containing information on revenues, expenditures, and demographics for every school district in the United States, we examine the effects of state-adopted school accountability systems on the adequacy and equity of school resources. We find little relationship between state implementation of accountability systems and changes in school finance equity, though we do find evidence that states in which courts overturned the school finance system during the decade exhibited significant equity improvements. Additionally, while implementation of accountability per se does not appear linked to changes in resource adequacy, states that implemented strong accountability systems did experience improvements.

Local Revenues under Fiscal Decentralization in Developing Countries: Linking Policy Reform, Governance and Capacity

Local Revenues under Fiscal Decentralization in Developing Countries: Linking Policy Reform, Governance and Capacity
In G. Ingram and Y. Hong (eds) Fiscal Decentralization and Land Policies (Cambridge, MA:  Lincoln Institute of land Policy Press)

Smoke, P.
01/01/2008

Micro-Credit

Micro-Credit
New Palgrave Dictionary of Economics Second Edition.  Palgrave Macmillan. 2008

Morduch, J. & Durlauf, S., Blume, L.
01/01/2008

Written by 1506 eminent contributors, this new edition of The New Palgrave Dictionary of Economics retains many classic essays of enduring importance and contains 1,872 articles. Published in eight print volumes and for the first time in online format, this is the definitive scholarly reference work for a new generation of economists.

Neighborhood Selection and the Social Reproduction of Concentrated Racial Inequality

Neighborhood Selection and the Social Reproduction of Concentrated Racial Inequality
Demography, Feb 2008, Vol. 45 Issue 1, p1-29, 29p.

Sampson, R.J. & Sharkey, P.
01/01/2008

In this paper, we consider neighborhood selection as a social process central to the reproduction of racial inequality in neighborhood attainment. We formulate a multilevel model that decomposes multiple sources of stability and change in longitudinal trajectories of achieved neighborhood income among nearly 4,000 Chicago families followed for up to seven years wherever they moved in the United States. Even after we adjust for a comprehensive set of fixed and time-varying covariates, racial inequality in neighborhood attainment is replicated by movers and stayers alike. We also study the emergent consequences of mobility pathways for neighborhood-level structure. The temporal sorting by individuals of different racial and ethnic groups combines to yield a structural pattern of flows between neighborhoods that generates virtually nonoverlapping income distributions and little exchange between minority and white areas. Selection and racially shaped hierarchies are thus mutually constituted and account for an apparent equilibrium of neighborhood inequality.

Power Reduces the Press of the Situation: Implications for Creativity, Conformity, and Dissonance

Power Reduces the Press of the Situation: Implications for Creativity, Conformity, and Dissonance
Journal of Personality and Social Psychology, 95, 1450-1466/

Galinsky, A.D., Magee, J.C., Gruenfeld, D.H., Whitson, J. & Liljenquist, K.
01/01/2008

Although power is often conceptualized as the capacity to influence others, the current research explores whether power psychologically protects people from influence. In contrast to classic social psychological research demonstrating the strength of the situation in directing attitudes, expressions, and intentions, five experiments (using experiential primes, semantic primes, and role manipulations of power) demonstrate that the powerful (a) generate creative ideas that are less influenced by salient examples, (b) express attitudes that conform less to the expressed opinions of others, (c) are more influenced by their own social value orientation relative to the reputation of a negotiating partner, and (d) perceive greater choice in making counterattitudinal statements. This last experiment illustrates that power is not always psychologically liberating; it can create internal conflict, arousing dissonance, and thereby lead to attitude change. Across the experiments, high-power participants were immune to the typical press of situations, with intrapsychic processes having greater sway than situational or interpersonal ones on their creative and attitudinal expressions.

Reversal of Fortunes: Low Income Neighborhoods in the 1990s

Reversal of Fortunes: Low Income Neighborhoods in the 1990s
Urban Studies, 45: 845-869.

O'Regan, K. & Ellen, I.G.
01/01/2008

This paper offers new empirical evidence about the prospects of lower-income, US urban neighbourhoods during the 1990s. Using the Neighborhood Change Database, which offers a balanced panel of census tracts with consistent boundaries from 1970 to 2000 for all metropolitan areas in the US, evidence is found of a significant shift in the fortunes of lower-income, urban neighbourhoods during the 1990s. There was a notable increase in the 1990s in the proportion of lower-income and poor neighbourhoods experiencing a gain in economic status. Secondly, in terms of geographical patterns, it is found that this upgrading occurred throughout the country, not just in selected regions or cities. Finally, it is found that the determinants of changes in lower-income, urban neighbourhoods shifted during the 1990s. In contrast to earlier decades, both the share of Blacks and the poverty rate were positively related to subsequent economic gain in these neighbourhoods during the 1990s.

From districts to schools: The distribution of resources across schools in big city school districts

From districts to schools: The distribution of resources across schools in big city school districts
Economics of Education Review Oct 2007, Vol. 26 Issue 5, p532-545, 14p

Rubenstein, R. & Schwartz, A.E., Stiefel, L., Bel Hadj Amor, H.
10/01/2007

While the distribution of resources across school districts is well studied, relatively little attention has been paid to how resources are allocated to individual schools inside those districts. This paper explores the determinants of resource allocation across schools in large districts based on factors that reflect differential school costs or factors that may, in practice, be related to the distribution of resources. Using detailed data on school resources and student and school characteristics in New York City, Cleveland and Columbus, Ohio, we find that schools with higher percentages of poor pupils often receive more money and have more teachers per pupil, but the teachers tend to be less educated and less well paid, with a particularly consistent pattern in New York City schools. We conclude with implications for policy and further research.

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