The determinants of subjective wellbeing in a developing country: The Ecuadorian case

Ecuador is a country characterized by deep social and territorial inequalities. In order to overcome this issue the national government setup in 2008 the National Plan of Wellbeing, a master plan whose objective is to put at the centre of the political action the wellbeing of the human being. This study aims to analyze the individual and contextual determinants of subjective wellbeing in Ecuador by examining a set of variables linked to the specific social and territorial characteristics of the country and to its main policy priorities. The assessment is based on econometric techniques able to account for the nested structure of the data, namely ordinary least squares and ordered logit with clustered standard errors and multilevel ordered logit. The results are robust and show that institutional trust, income, good housing conditions and education fosters wellbeing. On the other hand, being a woman, belonging to an ethnic minority or living in an oil dependent area is negatively correlated to subjective wellbeing. The policy implications range from an improvement of the institutional framework and redistributive system to better inclusion policies.JRC.B.3-Territorial Developmen

Estimación de la demanda de bebidas no alcohólicas en Ecuador

  Con el objetivo de explorar el potencial de un impuesto a las bebidas azucaradas como medida de salud pública en Ecuador, se estiman las elasticidades precio propia, precio-cruzada e ingreso de la demanda de bebidas no alcohólicas a nivel de hogar. Utilizando un Sistema Casi Ideal de Demanda Cuadrática (QUAIDS), se encuentra que, contrario al consumo de bebidas soft, el consumo de gaseosas es elástico. Estos resultados revelaron ser independientes del nivel de ingreso del hogar. Además, se halló una relación de sustitución entre las bebidas gaseosas y los lácteos. El gravamen de gaseosas, por tanto, podría disminuir su consumo y dirigirlo hacia bebidas más saludables.   Palabras clave: Elasticidad de la demanda; bebidas azucaradas; impuesto.   ABSTRACT This paper explores the potential effects of a tax on sugar-sweetened beverages as a public health policy in Ecuador by estimating the own, cross-price and income elasticities of non-alcoholic beverages at household level. We estimated a Quadratic Almost Ideal Demand System (QUAIDS) and found that, contrary to soft drinks, the consumption of soda is elastic. This revealed to be independent of the household income level. It was also found a substitution relationship between soda drinks and dairy drinks. Thus, taxation of soda drinks could decrease its consumption and direct it to healthier alternatives.   Keywords: Elasticity of demand; sugar-sweetened beverages; tax

Efectos de la aplicación de un impuesto sobre el consumo de bebidas azucaradas en Ecuador como estrategia para combatir la obesidad y el sobrepeso

Frente a las crecientes tasas de obesidad y sobrepeso en el Ecuador, esta investigación propone conocer los efectos de un impuesto de 15 centavos por litro de bebida azucarada sobre el consumo de estas y sobre el peso de la población. Para ello se estimó un Sistema de Demanda Casi Ideal (AIDS) haciendo uso de la Encuesta Nacional de Ingresos y Gastos de los Hogares Urbanos y Rurales 2011-2012. Se encontró que entre los consumidores medios, la población del nivel de ingreso alto respondería más que la población de ingreso bajo a los cambios en los precios, llegando a reducir su consumo de bebidas azucaradas en 13,1 litros al año y su peso en 1,5 libras. Se halló, además, que la medida sería regresiva, por lo que la administración de la recaudación tributaria se considera determinante para contrarrestar este efecto negativo. Una contribución importante de este trabajo es la estimación de los posibles resultados de la reforma tributaria en marcha en el país, la cual contempla un impuesto de 25 centavos por litro de bebida azucarada, ello implicaría mayores resultados sobre el consumo y sobre el peso de la población, sin embargo la regresividad sería más fuerte, también.This research aims to determine if a 15 cent per liter sugar-sweetened beverage tax could be considered an efficient public health policy facing the sharp rise in obesity and overweight rates in Ecuador. Using data from the NEIGHBOUR 2011-2012, a Quadratic Almost Ideal Demand System (QUAIDS) is estimated. The outcome shows that among average consumers of sugar-sweetened beverages, those belonging to the high-income level will experience the greatest annual weight (-1,5 pounds) and consumption reduction (-13,1liters), whereas consumers in the low-income level will experience the lowest effects. It is also found that the tax burden in terms of the household income is higher for low-income households than for high-income. Both findings reveal the regressivity of the measure; therefore, the management of the tax collection is considered crucial to counteract its negative effect. A significant contribution of this study is the estimation of the possible effects that the current tax reform will produce by applying a 25 cent per liter sugar-sweetened beverage tax. Under this scenario, we can conclude that results will be superior, as well as the regressivity will be stronger.EconomistaCuenc

Unveiling the internal migration dynamics in Ecuador between 2001 and 2010

The paper unveils the dynamics of internal migration in Ecuador using data from the last two census. The use of the chord diagrams allows us to identify the changing patterns of migration between provinces. In the last period, particularly, internal migration decreased notably and traditional destination provinces lost importance in favor of a more balanced redistribution of people in the Country.JRC.I.1-Monitoring, Indicators & Impact Evaluatio

Unveiling the internal migration dynamics in Ecuador between 2001 and 2010

Este artículo revela la dinámica de la migración interna en Ecuador utilizando datos de los últimos dos censos. El uso de diagramas de acordes permite identificar los patrones cambiantes de migración entre provincias. En el último período, la migración interna disminuyó notablemente, y las provincias de destino tradicionales perdieron importancia a favor de una redistribución más equilibrada de personas dentro del país.This paper unveils the dynamics of internal migration in Ecuador using data from the last two census. The use of chord diagrams allows one to identify the changing patterns of migration between provinces. In the last period, internal migration decreased notably, and traditional destination provinces lost importance in favour of a more balanced redistribution of people within the country

Ecological economics foundations to improve environmental education practices: designing regenerative cultures

The main objective of this article is to explore new paradigms of teacher training in the field of environmental education. That is why this qualitative study explores the literature on ecological economics and degrowth to identify the most important theoretical principles that can be integrated into environmental education practices. From a transdisciplinary approach, the study integrates a philosophical and epistemological dialogue between scientific knowledge and indigenous wisdom of the Ecuadorian peoples. Then, the results of introducing the ecological economics foundations in the Ecuadorian environmental education policies are described with the analysis of the TiNi program. Subsequently, the emergence of the regenerative economics in the literature is discussed. To conclude, the Sustainable Development Goals (SDGs) are questioned for their conventional economic vision, and regenerative cultures are proposed to promote world futures focused in human well-being and environmental justice

The determinants of subjective well-being in a developing country: the ecuadorian case

En este estudio, identificamos algunos factores individuales y contextuales que potencialmente afectan el bienestar subjetivo en los países en desarrollo y verificamos su efecto en el caso ecuatoriano. Ecuador es un país petrolero donde se han hecho intentos para superar las profundas desigualdades sociales y territoriales colocando el bienestar humano en el centro de las políticas públicas a través del Plan Nacional para el Buen Vivir. Por medio de mínimos cuadrados ordinarios y logit ordenado con errores estándar agrupados, así como modelos logit ordenados multinivel, encontramos que los territorios dependientes del petróleo afectan negativamente el bienestar. Además, las mujeres y los pueblos indígenas reportan un menor bienestar, mientras que los ingresos personales, la educación, la calidad de la vivienda, la confianza institucional, el seguro de salud y las relaciones sociales pueden mejorarlo. Desde una perspectiva política, encontramos que las necesidades insatisfechas básicas aún deben ser satisfechas para aumentar el bienestar, y se requieren mejoras adicionales del marco institucional, el sistema redistributivo y las políticas de inclusión. A este respecto, observamos que la política basada en Good Living aborda con precisión estos elementos y, por lo tanto, tiene un gran potencial de aplicación en otros países con características similares.The Author(s). In this study, we identify some individual and contextual factors potentially affecting subjective well-being in developing countries and check their effect in the Ecuadorian case. Ecuador is an oil country where attempts have been made to overcome deep social and territorial inequalities by placing human well-being at the core of public policy through the National Plan for Good Living. By means of ordinary least squares and ordered logit with clustered standard errors, as well as multilevel ordered logit models, we find that oil-dependent territories negatively affect well-being. Moreover, women and indigenous people report lower well-being, while personal income, education, housing quality, institutional trust, health insurance and social relationships can improve it. From a policy perspective, we find that basic unmet needs still need to be fulfilled to increase well-being, and further improvements of the institutional framework, redistributive system and inclusion policies are required. In this respect, we observe that Good Living-based policy accurately addresses these elements and, therefore, has great potential for application in other countries with similar characteristics

Discontent with democracy in Latin America

Satisfaction with democracy registered its lowest global score in 2019, with Latin America being the worst-performing region and the most seized by social protest. This paper briefly surveys and assesses the main narratives that attempt to explain the causes of this discontent in the region. The results show that discontent has different roots, which are mostly explained from an individual point of view rather than from a contextual one. Inequality of opportunity and institutional weaknesses play the main role. Considering the COVID-19 social and economic crisis, our results shed light on the key elements to address whether discontent is to be contained

Las múltiples dimensiones de la brecha salarial en Ecuador

Este estudio examina los determinantes de las diferencias en la brecha salarial en función del género, la etnia y la zona de residencia (urbana frente a rural) en Ecuador para los años 2007 y 2017. Combinando la descomposición de Oaxaca-Blinder con la regresión cuantil incondicional, identificamos en qué medida la brecha salarial entre dos grupos se debe a características (dotación) o factores no explicados en varios puntos de la distribución, es decir, para trabajadores de ingresos bajos, medios y altos. Los resultados muestran que, en promedio, la brecha salarial de género y étnica en 2017 aumentó ligeramente con respecto a 2007, mientras que las brechas salariales de área se mantuvieron estables. Sin embargo, los avances han beneficiado principalmente a quienes se encuentran en la parte superior de la distribución de la renta, mientras que las disparidades han aumentado para quienes se encuentran en la parte inferior. En cuanto a los efectos dotación, la educación explica principalmente las brechas salariales de área y etnia, mientras que hay una parte importante no explicada que contribuye más a las diferencias salariales de género.This study examines the determinants of wage gap differences based on gender, ethnicity, and area of residence (urban vs. rural) in Ecuador for the years 2007 and 2017. By combining the Oaxaca-Blinder decomposition with unconditional quantile regression, we identify the extent to which the wage gap between two groups is due to characteristics (endowment) or unexplained factors at various points of the distribution, i.e. for low-, medium- and high-income workers. Results show that, on average, the gender and ethnic wage gap in 2017 increased slightly with respect to 2007, while the area wage gaps remained stable. However, progresses have mainly benefited those at the top of the income distribution, while disparities have widened for those at the bottom. As regards endowment effects, education mainly explains area and ethnicity wage gaps, while there is an important unexplained part that contributes more to gender wage differentials

The effects of taxing sugar-sweetened beverages in Ecuador: an analysis across different income and consumption group

To analyze the effects of taxing sugar-sweetened beverages (SSBs) in Ecuador, this study estimates a Quadratic Almost Ideal Demand System model using data from the 2011-2012 National Survey of Income and Expenditure for Urban and Rural Households. We derive own- and cross-price elasticities by income quintiles and consumption deciles for five beverages, including two types of sugary drink: (i) milk, (ii) soft drinks, (iii) water, (iv) other sugary drinks, and (v) coffee and tea. Overall, results show that a 20% increase in the price of SSBs will decrease the consumption of soft drinks and other sugary drinks by 27% and 22%, respectively. Heterogeneous consumer behavior is revealed across income and consumption groups, as well as policy-relevant complementarity and substitution patterns. Policy impacts are simulated by considering an 18 cents per liter tax, implemented in Ecuador, and an ad-valorem 20% tax on the price. Estimated tax revenues and weight loss are larger for the latter. From a health perspective, high-income and heavy consumer households would benefit the most from this policy. Our study supports an evidence-based debate on how to correctly design and monitor food policy