Essays in Mechanism Design

This thesis addresses problems in the area of mechanism design. In many settings in winch collective decisions are made, individuals' actual preferences are not publicly observable. As a result, individuals should be relied on to reveal this information. We are interested in an important application of mechanism design, which is the construction of desirable procedures for deciding upon resource allocation or task assignment. We make two main contributions. First, we propose a new mechanism for allocating a divisible commodity between a number of buyers efficiently and fairly. Buyers are assumed to behave as price-anticipators rather than as price-takers. The proposed mechanism is as parsimonious as possible, in the sense that it requires participants to report a one-dimensional message (scalar strategy) instead of an entire utility function, as required by Vickrey-Clarke-Groves (VCG) mechanisms. We show that this mechanism yields efficient allocations in Nash equilibria and moreover, that these equilibria are envy-free. Additionally, we present distinct results that this mechanism is the only simple scalar strategy mechanism that both implements efficient Nash equilibria and satisfies the no envy axiom of fairness. The mechanism's Nash equilibria are proven to satisfy the fairness properties of both Ranking and Voluntary Participation. Our second contribution is to develop optimal VCG mechanisms in order to assign identical economic "bads" (for example, costly tasks) to agents. An optimal VCG mechanism minimizes the largest ratio of budget imbalance to efficient surplus over all cost profiles. The optimal non-deficit VCG mechanism achieves asymptotic budget balance, yet the non-deficit requirement is incompatible with reasonable welfare bounds. If we omit the non-deficit requirement, individual rationality greatly changes the behavior of surplus loss and deficit loss. Allowing a slight deficit, the optimal individually rational VCG mechanism becomes asymptotically budget balanced. Such a phenomenon cannot be found in the case of assigning economic "goods.

Income Distribution under Latin America’s New Left Regimes

This paper reviews the decline in income inequality that has taken place over 2002-2007 in most Latin American countries against the background of its steady increase over 1980-2002. The paper analyzes then the factors that could explain this trend reversal. It focuses in particular on favorable external conditions, cyclical factors, improvements in the distribution of educational achievements and the subsequent drop in skill-premium, and changes in macroeconomic and social policies introduced in several countries, particularly by a growing number of left-of-centre governments which have come to power during the last decade. An econometric test for the years 1990-2007 indicate that, in addition to a favorable business cycle and external conditions, a decline in skill premium and the new policy model of fiscally prudent social-democracy which is emerging this decade in much of Latin America impacted favorably the distribution of income. If this approach will survive the current crisis, much of the recent inequality decline is likely to become permanent.income inequality, human capital inequality, external conditions, policy regimes, Latin America.

Efectos sobre la economía de mejorar el acceso de las pequeñas y medianas empresas al mercado de capitales: una evaluación en equilibrio general computado

Is it possible to increase GDP, reduce unemployment and improve incomedistribution by providing small and medium enterprises (SMEs) betteraccess to capital markets? In this study, we used a CGE model of Argentinato address this question and to evaluate the economy-wide net impactaccounting for the reallocation of resources from other sectors. We findthat although the benefits in question could be attained, SMEs should alsobe expected to self-exclude from programs that provide access to capitalmarkets if that access is contingent upon higher formalization. Formalizationcan be expensive for SMEs. Additionally, this model estimated the gains inproductivity necessary to incentivize SMEs to formalize and to voluntarilyaccess capital markets; however, after gaining productivity, the SMEs createdfewer jobs than initially expected.¿Es posible aumentar el PIB, reducir el desempleo y mejorar la distribución del ingreso mejorando el acceso de las pequeñas y medianas empresas (PyMEs) al mercado de capitales? En este estudio usamos un modelo de Equilibrio General Computado de Argentina para analizar esta cuestión y para evaluar el impacto general sobre la economía, de modo de tener en cuenta la reasignación de recursos desde otros sectores. Encontramos que si bien los beneficios podrían ser alcanzables, las PyMEs podrían autoexcluirse de programas que mejoren el acceso, si este fuera condicional a un mayor grado de formalización. La formalización puede ser costosa para las PyMEs. Además, el modelo estima las ganancias de productividad necesarias para inducir a las PyMEs a formalizarse y acceder voluntariamente al mercado de capitales; sin embargo, después de ganar productividad las PyMEs terminan creando menos puestos de trabajo que los esperados al inicio.Fil: Chisari, Omar Osvaldo. Universidad Argentina de la Empresa. Facultad de Ciencias Económicas. Instituto de Economía; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; ArgentinaFil: Romero, Carlos Adrián. Universidad Argentina de la Empresa. Facultad de Ciencias Económicas. Instituto de Economía; ArgentinaFil: Vila Martínez, Juan Pablo. Universidad Argentina de la Empresa. Facultad de Ciencias Económicas. Instituto de Economía; Argentin

Electricity Sector Reform in Developing Countries: A Survey of Empirical Evidence on Determinants and Performance

This paper reviews the empirical evidence on electricity reform in developing countries. We find that country institutions and sector governance play an important role in success and failure of reform; reforms appear to have increased operating efficiency and expanded access to urban customers; they have to a lesser degree passed on efficiency gains to customers, tackled distributional effects, or improved rural access. Moreover, some of the literature is not methodologically robust or on a par with general development economics literature and findings on some issues are limited and inconclusive while some important areas are yet to be addressed. Until we know more, implementation of reforms will be more based on ideology and economic theory rather than solid economic evidence.The World Bank Electricity Research Programme and the CMI Electricity Project (IR-45

Optimal weekly releases from a multireservoir hydropower system

The operation of a multi-unit electric energy generating system is studied under certain and uncertain future inflow conditions. The generating units include thermoplants, hydroplants with regulating reservoir and run-of-river hydroplants. The objective is to minimize the expected cost of the operation of the system while meeting a previously defined energy demand. A case study is formulated based on the electric energy generating system of the South of Brazil. The system is composed of 6 hydroplants with regulating reservoirs, 2 run-of-river hydroplants, and 8 thermoplants. In order to obtain a better insight into the nature and peculiarities of the system's operation it is initially studied considering the future to be deterministic. An aggregation-optimization-disaggregation procedure is proposed to identify a near optimal solution while reducing substantially the computational effort. This consists of the development of an aggregated representation of the system composed of a hypothetical and unique reservoir with overall energy inflows and releases. Optimal operation of the aggregated system is determined by a new and efficient optimization technique specifically developed for this problem. A disaggregation procedure defines the operation of each system's unit given the operation of the aggregated system. The procedure is based on a heuristic approach that has as a main objective to minimize water spills. An aggregated representation of the system is again adopted for the definition of optimal strategy of operation when the future inflows are uncertain. The characteristics of operation of each reservoir are introduced into the aggregated formulation utilizing the peculiarities of the optimal deterministic operation. A modification of Massé's Chain of Marginal Expectations is used in the computations. The resultant strategy of operation can be presented as a function of aggregated values of energy storage and inflow. The strategy explicitly considers the autocorrelation of aggregated energy inflows. The strategy also implicitly accounts for the cross-correlations among the energy storages and inflows to each reservoir. Finally, a substantial part of the autocorrelation of the energy inflows and storages in each reservoir is indirectly considered in the strategy. Theoretical significance of the strategy is obtained without burdensome computational effort

Escassez do espaço : um estudo da desigualdade de renda e conflitos de terra no Brasil

Orientador: Bastiaan Philip ReydonDissertação (mestrado) - Universidade Estadual de Campinas, Instituto de EconomiaResumo: Os conflitos agrrios so fundamentais para debates sobre textit development em ci?ncias polticas e economia. Assim a longa e venervel tradio de pesquisa de conflitos agrrios, que colocada em torno da terra ou questo do mercado. Mas raramente h pesquisas sobre questes de terra (conflitos) e de desigualdade (de mercado) colocadas. Grande parte dessa escassez devido falta de dados sobre a explorao do possvel vnculo entre a questo da terra para o mercado, ou seja, conflitos de terras e desigualdades econmicas. Esta tese desenvolve uma evid?ncia baseada no quadro da desigualdade de renda e conflito de terra. Propomos um novo mtodo de anlise de um painel de dados de 2004 a 2014 para unidades administrativas federais e estaduais no Brasil. O argumento principal caracteriza de forma nica uma classe de medidas de desigualdade com indicadores de conflito de terra que se encaixam na literatura mais ampla de conflito e economia do desenvolvimento. A anlise demonstra uma evid?ncia de patente de que a desigualdade de renda, medida em ndices variados, tem relao significativa com conflitos de terra. Alm disso, fornecemos estimativas de desigualdades verticais e horizontais que sugerem o surgimento evolutivo da desigualdade de renda e seu impacto em conflitos de terra. No resumo geral, a pesquisa demonstra a questo da terra como a capacidade das partes para incitar um conflito a explorar recursos naturais depende do seu acesso a mercados externos por meio da desigualdade de renda. Aqui, as hierarquias de terra (distribuio) esto intimamente associadas a desigualdades, principalmente a desigualdade de renda no Brasil. As instituies agrrias estatais ou no estatais desempenham um papel crucial nesses conflitos. Os dados de uma fonte de terceiros, como a ONG, chamaram de CPT, alm do governo e da instituio de pesquisa, ou seja, o IBGE sugere um sistema complexo de economia de terra. A terra no apenas um bem econmico importante, mas tambm uma fonte de meios de subsist?ncia; tambm est intimamente ligado identidade, histria e cultura da comunidade. As comunidades, portanto, podem facilmente se mobilizar em torno das questes da terra, tornando a terra um objeto central de conflito. Isso leva a textit centrality de terra em questo de desenvolvimento. Colocamos a centralidade da terra em debates no espao e na escassez - em macro-fundao de micro-conflitos. Nosso argumento central duplo, primeiro o espao em termos de terra e renda exacerba o cisma na sociedade, onde um grupo d conflito ou competio como ferramenta de acumulao. Em segundo lugar, os grupos no poder so muitas vezes grupos de renda mais elevados que sugerem as razes coloniais dos conflitos de terra. Consequentemente, a pesquisa sugere que as queixas discordam como meta de desenvolvimento textit fundamental para a economia emergente. Com base em extensas anlises de dados, a pesquisa recomenda um regulamento de preos, acesso garantido ao mercado e redistribuio de terras como tr?s passos principais para este objetivoAbstract: The agrarian conflicts are central to debates on development in political sciences and economics. So is the long venerable tradition of research of agrarian conflicts which is either placed around the land or market question. But there is seldom research on land (conflicts) and (market) inequality question put together. Much of this dearth is due to lack of data on exploring possible link between land question to market i.e. land conflicts and economic inequality.This thesis develops an evidence based on the framework of the income inequality and land conflict. We propose a novel method of analyzing a panel data from years 2004 to 2014 for Federal and State level administrative units in Brazil. The main argument uniquely characterizes a class of inequality measures with land conflict indicators that fits into broader literature of conflict and development economics. The analysis demonstrates a patent evidence that income inequality, measured in varied indices, have significant relation with land conflicts. Additionally, we provide estimation of vertical as well as horizontal inequality that suggest evolutionary emergence of income inequality and its impact on land conflicts. In overall summary, the research demonstrates the land question as ability of parties to incite a conflict to exploit natural resources depends on their access to external markets via income inequality. Here, the land (distribution) hierarchies are closely associated with inequalities, mainly income inequality in Brazil. The state or non-state agrarian institutions plays crucial role in these conflicts. The data from third party source i.e. NGO called CPT besides the government and research institution i.e. IBGE suggest a complex system of land economy. The land is not only an important economic asset but also a source of livelihoods; it is also closely linked to community identity, history and culture. Communities, therefore, can readily mobilize around land issues, making land a central object of conflict. This leads to centrality of land in development question. We place the centrality of land in debates in¿space and scarcity¿in macro-foundation of micro-conflicts. Our central argument is twofold, firstly space in terms of land and income exacerbate the schism in society where one group endows conflict or contest as tool of accumulation. Secondly, the groups in power are often higher income groups which suggest the colonial roots of land conflicts. Consequently, research suggests that grievances discourses as fundamental development goal for emerging economy. Based on extensive data analysis, the research recommends a price regulation, guaranteed market accesses and land redistribution as three key steps towards this goalMestradoEconomia Social e do TrabalhoMestre em Desenvolvimento Econômic