Deworming and Development: Asking the Right Questions, Asking the Questions Right

Two billion people are infected with intestinal worms. In many areas, the majority of schoolchildren are infected, and the World Health Organization (WHO) has called for school-based mass deworming. The key area for debate is not whether deworming medicine works—in fact, the medical literature finds that treatment is highly effective, and thus the standard of care calls for treating any patient known to harbor an infection. As the authors of the Cochrane systematic review point out, a critical issue in evaluating current soil-transmitted helminth policies is whether the benefits of deworming exceed the costs or whether it would be more prudent to use the money for other purposes. While in general we think the Cochrane approach is very valuable, we argue below that many of the underlying studies of deworming suffer from three critical methodological problems: treatment externalities in dynamic infection systems, inadequate measurement of cognitive outcomes and school attendance, and sample attrition. We then argue that the currently available evidence from studies that address these issues is consistent with the consensus view expressed by other reviews and by policymakers that deworming is a very cost-effective way to increase school participation and has a high benefit to cost ratio.Economic

3 empirical essays on investment in physical and human capital

Thesis (Ph.D.)--Massachusetts Institute of Technology, Dept. of Economics, 2002.Includes bibliographical references.This dissertation consists of three independent essays, all of which are empirical treatments of different types of investment. The first essay evaluates the economic consequences of the successful eradication of hookworm disease from the American South in the early twentieth century. I find that reducing hookworm infection in this region brought about large increases in human capital and earnings. I then place these results in the context of contemporaneous questions about the economic burden of tropical disease. The second essay (joint with Kevin Cowan) examines the role that partial dollarization of debt may have played in recent emerging-market financial crises. Much has been written recently about the problems that result from "mismatches" between foreign-currency denominated liabilities and assets (or income flows) denominated in local currency. Specifically, it is supposed that the expansion in the "peso" value of "dollar" liabilities resulting from a devaluation could, via a net-worth effect, offset the expansionary competitiveness effect. Our results suggest that, for this sample of firms in these episodes, this net-worth channel is likely small in comparison with the more traditional competitiveness effect. The final essay (joint with Aimee Chin) considers the role that English-language skill plays in the economic performance of immigrants to the United States. This study exploits the fact that younger children tend to learn languages more easily than adolescents or adults to construct an instrumental variable for English proficiency. We find that low English proficiency significantly lowers earnings and educational attainment. Indeed, much of the effect of language skills on wages in our sample appears to be mediated by years of schooling.by Crawford Hoyt Bleakley, Junior.Ph.D

Maturity Mismatch and Financial Crises: Evidence from Emerging Market Corporations

Substantial attention has been paid in recent years to the risk of maturity mismatch in emerging markets. Although this risk is microeconomic in nature, the evidence advanced thus far has taken the form of macro correlations. We evaluate this mechanism empirically at the micro level by using a database of over 3000 publicly traded firms from fifteen emerging markets. We measure the risk of short-term exposure by estimating, at the firm level, the effect on investment of the interaction of short-term exposure and aggregate capital flows. This effect is (statistically) zero, contrary to the prediction of the maturity-mismatch hypothesis. This conclusion is robust to using a variety of different estimators, alternative measures of capital flows, and controls for devaluation effects and access to international capital. We do find evidence that short-termexposed firms pay higher financing costs and liquidate assets at “fire sale” prices, but not that this reduction in net worth translates into a drop in investment

Shifts in the Beveridge Curve, job matching, and labor market dynamics

The Beveridge curve -- the scatter plot of unemployment rates versus vacancy rates -- has recently shifted inward dramatically. While the Beveridge curve is often used to summarize the state of the labor market, it is not a structural economic relationship. Thus, in order to understand the labor market implications of recent shifts in the curve, we must first understand the labor market activities that give rise to the Beveridge curve.> This article examines the Beveridge curve over the past 30 years. The authors discuss some of the issues surrounding the job-matching process and attempt to estimate the extent to which changes in the job-matching function are responsible for changes in the position of the Beveridge curve. They also consider other potential sources of shifts in the Beveridge curve, including shifts in the age and gender composition of the labor force and changes in the amount of "churning" in the labor market. They find significant increases in matching efficiency, significant drops in labor force growth, and a decrease in labor force churning, the sum of which account for the inward shift in the Beveridge curve since 1987.Unemployment