Economist's Paper Calls for New Research Agenda on Emigration
An article that Michael A. Clemen researched as a Visiting Scholar at NYU Wagner and the Department of Economics is generating a great deal of discussion. "Economics and Emigration: Trillion-Dollar Bills on the Sidewalk?" focuses on the vast economic losses that result from tightly binding limitations on emigration imposed by destination countries such as the United States (where, for example, the 2010 Diversity Visa Lottery attracted 13.6 million applications for 50,000 visas, mainly from people in developing countries). When it comes to the many policies that restrict emigration, the few estimates of the economic losses to the receiving countries "should make economists' jaws hit their desks," writes Clemens, a Senior Fellow with the Center for Global Development, Washington, D.C., adding "there appears to be trillion-dollar bills on the sidewalk." Yet economists and researchers tend not to focus on what is perhaps "the greagest single class of distortions in the global economy," he notes. Clemens explores why that is so, and goes on to propose a new research agenda.
Emanuel Tobier, Professor Emeritus of Economics and Planning, dies at 73
En Route to MPA, NYU Wagner Student chooses Finance Specialization – and wins Fellowship at Citizens Budget Commission
Meghan L. Haenn, an MPA student at NYU Wagner, has been chosen by the highly respected Citizens Budget Commission as a CBC Public Policy Fellow for 2014-15. The one-year paid fellowship, awarded to two New York City public policy students in the final year of their degree program, will enable Meghan to conduct research on New York City government finances and services with the nonpartisan, nonprofit civic organization.
Meghan majored in history at Wake Forest University in Winston-Salem, North Carolina, and worked on an important initiative to help her alma mater re-allocate operating expenses to financial aid and other parts of the university’s core mission. One of her supervisors on the project, Rogan Kersh, Wake Forest’s provost and a former professor of public policy and associate dean for NYU Wagner, helped her think deeply about the public policy schools that might be right for her.
At first blush, applying to a graduate program in New York City seemed very unlikely. She was just too proud a Philadelphia native, she explained. But she made two exploratory visits to NYU Wagner and found herself impressed by the top-ranked school’s “sense of community,” philosophy of “educating at the intersections,” and ready access to many career opportunities.
Last September, Meghan started full-time at NYU Wagner where she a found an unexpected acumen for finance. After she performed well in Daniel L. Smith’s class on financial management, Professor Smith encouraged Meghan to make finance her specialization, which she did. Not only that, she was recently elected as the treasurer of the Wagner Student Association.
NYU Wagner’s strong spirit, rigorous and supportive faculty, and dynamic location in the heart of downtown New York City have all enriched her graduate school experience. She’s working this summer in the city at Accenture on a higher education consulting project. Come this September, the Citizens Budget Commission fellowship begins, and she’ll resume working toward her MPA degree.
“NYU Wagner is a great opportunity to apply and further develop the skills that I’ve been acquiring,” she said. “It has given me a lot in such a short amount of time!”
Evaluating the World Bank
The panel included Angus Deaton (Chair), Princeton University; Kenneth Rogoff, Harvard University; Abhijit Banerjee, M.I.T.; and Nora Lustig, Director of the Poverty Group at UNDP.
NYU Wagner�s Professor Jonathan Morduch participated in the review with responsibility for evaluating research on finance and private sector development.
The report with responses by Francois Bourgignon, the Chief Economist, and Joseph Stiglitz, a former Chief Economist, is available at: http://econ.worldbank.org
In January, 2007, Professor Morduch was invited to join the Editorial Board of the World Bank Economic Review, the world�s most widely read scholarly economic journal. His term ends in December 2009.
Expanding Banking Access to the Poor: New Gates Foundation Initiative Based at Wagner
Now, a five-year Financial Access Initiative funded by a $5 million grant from the Bill & Melinda Gates Foundation will bring together top researchers from Harvard, NYU, Yale, and Innovations for Poverty Action to assess existing research on global financial access, generate new evidence through field work, and inform regulatory policy.
"As donors in this space, it is critical that we make decisions informed by sound research," said Bob Christen, Director of Financial Services for the Poor at the Bill & Melinda Gates Foundation. "We hope that the Financial Access Initiative will yield data, analysis, and research that decision makers need to deliver financial services that markedly advance the well being of the poor."
One of the biggest hurdles to opening up financial sectors to those living in poverty is a lack of hard data and analysis about how poor households manage their finances and cope with risk: which financial products do the poor use and why, who has access to what, at what cost and where. The impact of regulation and government policy on the broad availability of finance is still badly understood. Most fundamentally, despite the anecdotes, rigorous evidence is lacking on the economic and social impacts of different interventions and policies.
Director and Principal Investigator Jonathan Morduch said: "The Financial Access Initiative will systematically address important knowledge gaps and contribute to a much stronger understanding of the issues hindering access to good financial services."
Under the direction of Morduch, a professor at New York University, the Initiative is based at NYU's Robert F. Wagner Graduate School of Public Service and is co-directed by professors of economics Sendhil Mullainathan of Harvard and Dean Karlan of Yale. Christina Barrineau, who formerly headed the International Year of Microcredit for the United Nations, will lead the Initiative as Managing Director.
Field research will be coordinated by Innovations for Poverty Action, an organization based in New Haven, Connecticut, and headed by Dean Karlan. The research will build on studies with existing microfinance partners in a dozen countries including Mexico, Peru, India, Pakistan, Ghana, and the Philippines. The Initiative is also developing new collaborative relationships to broaden the potential of the research and dissemination of findings.
To reach Christina Barrineau, call 212.998.7536 or send email to Christina.firstname.lastname@example.org.
Facebook CEO Mark Zuckerberg Recommends Book Co-authored by NYU Wagner Professor Jonathan Morduch
Facebook CEO Mark Zuckerberg is currently recommending Portfolios of the Poor, a groundbreaking book co-authored by NYU Wagner Professor of Public Policy and Economics Jonathan Morduch, for reading and discussion by the Facebook community.
The influential book is the result of systematic research on how the global poor – billions of people around the world who live on less than $2 a day – manage their money. Zuckerberg’s book club, A Year in Books, selects works with big ideas that impact public policy, society and business. Portfolios of the Poor is his 17th pick.
Professor Morduch, managing director of the Financial Access Initiative, wrote the book with Daryl Collins of Bankable Frontier Associates, who received her Ph.D. in Public Policy Analysis at NYU Wagner, and researchers Stuart Rutherford and Orlanda Ruthven.
Published in 2009 by Princeton University Press, Portfolios of the Poor: How the World’s Poor Live on $2 a Day is the first in-depth examination of how the world’s poorest households patch together financial lives.The book shows that they do so with surprising sophistication and complexity, refuting commonly held assumptions about the poor.
Over 250 families in Bangladesh, India, and South Africa participated in the study. Their financial diaries show that poor households are not living hand-to-mouth, but that most of them save and borrow with their future in mind, and maintain complex financial lives because they are poor, not in spite of it.
FAI Researching How Low-Income Americans Use Financial Products [Video]
The Financial Access Initiative (FAI) at New York University's Robert F. Wagner Graduate School of Public Service has launched an important new study to better understand the financial lives of low-income Americans.
FAI, in partnership with Bankable Frontier Associates and The Center for Financial Services Innovation, will track families in four geographic regions in the U.S. over 16 months and collect highly detailed data on household financial activity. The study promises a timely and independent look at how low-income Americans are managing their financial lives. The $3 million project is supported by a grant from the Citi Foundation and the Ford Foundation.
FAI's managing director discusses the launch of the U.S.-centered financial diaries project in this video. The managing director is Jonathan Morduch, professor of public policy and economics at the Robert F. Wagner Graduate School of Public Service at NYU.
The "Financial Diaries" methodology employed to conduct this research has been successfully applied in Bangladesh, India and South Africa. The results of that FAI research were detailed in a groundbreaking book Portfolios of the Poor: How the World's Poor Live on $2 a Day (Princeton University Press, 2009). Instrumental in broadening conceptions of global poverty, the book revealed that poor households lead surprisingly active and sophisticated financial lives, driven by the need to cope with irregular and unpredictable incomes but few reliable tools to absorb economic shocks.
"Improving access to reliable, flexible financial products and services is an important step to help poor and low-income households better manage their economic lives," says Professor Morduch. "The Financial Diaries research has proven to be an effective means of gathering important information to inform the design of these kinds of financial tools."
"The findings in Portfolios of the Poor provided an eye-opening look at the financial lives of the poor in other countries, and we're excited to use this lens in the U.S. context," says Brandee McHale, Chief Operating Officer at the Citi Foundation. "This research can fill an important gap in the current data on how low-income families in our own backyards are making ends meet and help reduce the barriers to financial well-being that these families currently face."
In the U.S., the Federal Deposit Insurance Corporation (FDIC) found that some 17 million adults live in households without any bank accounts. Another 43 million have accounts but are "underbanked," relying on non-bank services such as pay-day lenders and pawn shops. Yet, there is little concrete data about the needs, preferences and use of financial services by low-income families.
"Remarkably, more than 30 million low-income families across the U.S. lack access to traditional banking and financial systems," says Frank DeGiovanni, director of financial assets at the Ford Foundation. "This landmark study will help us to better understand their financial lives, greatly improving the ability the financial industry of nonprofits, and policymakers to meet their needs and increase the quality, affordability, and accessibility of financial services."
To conduct this groundbreaking research, the U.S. Financial Diaries team will spend one-and-a-half years with 300 families, distributed across 4 research sites-in the South, the Northeast, the Midwest and the West. Researchers will meet with families every two weeks to collect highly detailed data on household cash flows.
This methodology of regularly observing household finances over long periods of time allows researchers to identify often-overlooked strategies of financial management, such as the use of informal borrowing and lending with neighbors and family members. The study is designed to capture spending and savings habits that often remain hidden in large surveys. The findings will be published in a series of reports beginning in mid-2012.