Capital Inflows, Financial Development, and Credit Constraints at the Firm Level: Theory and Evidence

This dissertation is composed of two related essays on the effects of periods of large capital inflows on macroeconomic aggregates and financing constraints at the firm level, and the relationship of the differences in these effects among developed and emerging economies with the degree of financial development. In the first essay I conduct an empirical exploration of this topic. I show that periods of large capital inflow are associated with more volatile macroeconomic outcomes in economies with a low degree of financial development, relative to economies with more developed financial systems. Employing firm level data for 42 countries, I show that firms in economies with a low level of financial development exhibit a relatively larger loosening in the cost of borrowing and a larger appreciation in equity prices. I show that financing constraints are more prevalent in firms located in countries with a low degree of financial development. Moreover, periods of capital inflow booms relax these financing constraints. This decrease is significant regardless of the composition of capital inflows, stronger when coupled with domestic credit booms, larger for firms in the non-tradable sector and larger for firms that depend more heavily on internal funds to finance their investment opportunities. In the second essay, using a theoretical model, I explain the larger aggregate response around capital inflow booms, as arising from varying degrees of financial development, and their relation to the pervasiveness of credit constraints at the firm level. I propose a heterogeneous agents model in which the share of borrowing-constrained agents depends on the level of financial development. Agents in an economy characterized by a low degree of financial development can use a lower share of their assets, measured at their market value, as collateral to secure debt. I show that a period of large capital inflow causes an increase in the demand for capital for both unconstrained and constrained firms. At the initial valuation of capital, only unconstrained firms can freely adjust their demand for capital. However, the increase in the aggregate demand for capital increases its valuation and thus generates a loosening in financing constraints for ex-ante constrained firms, and an amplified response at the firm level and on macroeconomic aggregates

Hacia una mejor educación rural: impacto de un programa de intervención a las escuelas en Colombia

Utilizando información censal de las sedes educativas rurales de Colombia el presente trabajo evalúa el impacto que tuvo el Programa de Educación Rural -PER - en las tasas de eficiencia (cobertura, reprobación, aprobación y deserción) y calidad de la educación en las sedes en donde se aplicó. A través de la implementación de modelos educativos flexibles adaptados a las necesidades de la comunidad, el programa logró efectos positivos en las medidas de eficiencia y calidad de las sedes tratadas. Los resultados son robustos a distintas metodologías de estimación y grupos de control y evidencian que programas de intervención dirigidos a la oferta (escuelas) pueden mejorar sustancialmente la eficiencia y calidad de la educación en las zonas rurales. Se encuentra, en adición, que el efecto del PER sobre los indicadores de eficiencia de las sedes educativas rurales se da a través de la calidad tanto del material educativo y de la capacitación en los modelos pedagógicos como de las mejoras en la gestión y administración de la institución educativa.Educación rural, evaluación de impacto, diferencias endiferencias, matching estimators.

Energy Efficiency of Mexican states: A Stochastic Production Frontier Approach

Mexico’s goals of reducing carbon emissions and improving the Energy Efficiency (EE) cannot be attained if EE indicators are not estimated. Nevertheless, given the lack of information at state level, there are not yet indicators at regional or state level. Using a Stochastic Production Frontier model this paper offers an estimation of EE for 29 states and identifies energy inefficiency determinants. The main findings are threefold: first, most states have improved their EE, except for Jalisco, Baja California and Veracruz. Second, three variables are identified as energy inefficiency drivers, namely, population density, market potential and high presence of materials industries. Third, electricity demand is not deterred through the price. Upon these results, we recommend that EE policies must incorporate the regional component, based on the mentioned variables. This work contributes with the first estimation of EE indicators for states in Mexico, its main limitation is that due to data availability, the estimations only include electricity as primary energy input.Eficiencia Energética por estados de México: Aplicación de un modelo de Frontera de Producción Estocástica Los objetivos de México de reducir las emisiones de dióxido de carbono y de mejorar la Eficiencia Energética (EE) no pueden lograrse si no se hacen estimaciones de EE. Sin embargo, dada la falta de datos por estado, no hay indicadores por regionales. Utilizando un modelo de Frontera de Producción Estocástica este artículo ofrece una estimación de EE para 29 estados e identifica determinantes de ineficiencia energética. Las conclusiones principales son tres: primero, la mayoría de los estados han mejorado su EE, excepto Jalisco, Baja California y Veracruz; segundo, se identificaron tres variables como determinantes de ineficiencia energética que son: densidad de población, potencial de mercado y alta presencia de la industria de materiales; tercero, el consumo de energía no disminuye con aumentos en el precio. Con base en estos resultados, recomendamos que las políticas de EE se regionalicen en función de las variables aquí mencionadas. Este artículo contribuye con la primera estimación regional de EE en México, su principal limitación es que, dada la disponibilidad de información, las estimaciones sólo incluyen a la electricidad como fuente primaria de energía

Impact of First-Year Coursework on College Students’ Academic Motivation, Use of Learning Strategies, and Understanding of Liberal Education

Color poster with text and images.Seminars for new first-year college students first appeared in the U.S. around 1910 and were a common staple for several decades. In the late 1930s, faculty began to question the academic value of these courses, and they had nearly disappeared from campuses by the mid-1960s. The resurgence in new-student seminars began in the early 1970s, and by the 1980s, the seminars had become common once again. Despite the longstanding history of the first-year seminar, research about its effectiveness was very limited until the late 1980s. Today, much of the available research dates from the 1990s, with the pace of published studies slowing down after 2000. It is imperative for campuses that offer first-year seminars to investigate the efficacy of these courses on a regular basis for the purposes of enhancing student learning and making wise decisions about resource allocations. The purpose of current study is to assess the effectiveness of a new First Year Experience course, IDIS 155: Exploring Liberal Education. Intended to develop students’ understanding of Liberal Education (LE), the course also aims to promote learning strategies for success in college.University of Wisconsin--Eau Claire Office of Research and Sponsored Program