The impact of Inequality on Economic Growth: Evidence for Mexico 1895-1994

The aim of the paper is to explore the influences of initial inequality on the long run distribution of wealth. The paper presents two mathematical models that analyse the occupational choice of individuals in the presence of capital constraints and risk in entrepreneurial activities. The models show that inequality and particularly polarization hinder economic growth. The higher the initial level of polarization is, the lower the long run aggregate wealth of the economy and the higher the long run polarization will be. The models are calibrated using numerical simulations. The implications of the models are assessed empirically using data on economic growth, and income distribution in Mexico, during the period 1895-1994, as well as the "Doing Business" databases of the World Bank. Policy-wise it is found that a more egalitarian wealth distribution and less poverty can be achieved through wealth redistribution policies and by improving the business climate. This can be done by reducing the cost of setting-up firms (technology,bureaucratic and administrative costs), introducing labour-market reforms encouraging the hiring of those typically excluded such as the poor, improving the access to credit markets by reducing the costs of creating and/or registering collateral and broadening the credit bureau coverage. --

The Role of Ethnic Identity and Economic Issues in the 2007 Kenyan Elections

This paper investigates the factors that shaped Kenyan’s voting intentions in the 2007 presidential election. Using data from a public opinion survey conducted two weeks before the election we are able to evaluate the relative importance of what shaped voting behavior comprehensively, taking into account factors such as ethnicity, access to public services, incidence of poverty and wealth differences across ethnic groups and across generations. We find strong evidence that ethnic identity was the main factor determining voting intentions and to a lesser extent grievances, economic well-being, and access to public and private goods. However, the relative importance of these factors depends on whether Kenyan voters identify themselves first and foremost in terms of their ethnicity, occupation or nationality. Those who identify themselves in terms of their ethnicity were influenced the most by access to public services. This evidence supports theories that suggest ethnic identity is a proxy used by voters to assess which candidate will give them greater access to public goods.Voting behavior, ethnic identity, Kenya

Decentralization, Accountability and the 2007 MPs Elections in Kenya

The Kenyan Constituency Development Fund (CDF) aims to alleviate poverty by allocating resources to constituencies which MPs and residents decide how to spend. In this paper we assess whether MPs’ re-election chances were affected by their management of the CDF. For this purpose we analyse the type of projects implemented by the CDF and residents’ opinion about their MP and the CDF. We find that MPs’ re-election chances were influenced by MPs’ ethnicity and by the way MPs allocated the CDF. MPs who run the most projects on education and the least on other projects such as health or water were less likely to be re-elected.Decentralization, Accountability, Elections, Africa, Kenya

Triggers and Characteristics of the 2007 Kenyan Electoral Violence

Following the 2007 disputed Kenyan Presidential election unprecedented levels of violence erupted across the country adding to the history of troubled elections in Africa. This paper offers quantitative and qualitative evidence on the incidence, impacts and issues that triggered electoral violence. Using two surveys conducted before and after the election we find that one out of three Kenyans were affected by the violence regardless of their ethnicity and wealth. The chances of being a victim of violence were higher in areas with land conflicts and where politically-connected gangs operated. Violence, which was mainly triggered by the perception that the election had been rigged, reduced trust and social capital among communities making violence more likely to reoccur.Voting, Electoral Violence, Rule of Law, Institutions, Africa, Kenya

The influence of social capital on risk-taking propensity. A study on Chinese immigrant entrepreneurs

This paper studies the influence of social capital on immigrant entrepreneurs’ risk-taking propensity. The paper has a particular focus on Chinese immigrants and also explores the effects of the so-called “guanxi”, a specific form of social capital for Chinese communities. The empirical research is based on a survey conducted in 2012 on Chinese immigrant entrepreneurs in Andalusia (Spain). An ordinal logistic regression specification was employed to test the hypotheses. The results show that the Chinese immigrant entrepreneurs with greater structural, relational and cognitive social capital and better “guanxi” have a higher risk-taking propensity in their business activity

Primordial black hole evolution in two-fluid cosmology

Several processes in the early universe might lead to the formation of primordial black holes with different masses. These black holes would interact with the cosmic plasma through accretion and emission processes. Such interactions might have affected the dynamics of the universe and generated a considerable amount of entropy. In this paper we investigate the effects of the presence of primordial black holes on the evolution of the early universe. We adopt a two-fluid cosmological model with radiation and a primordial black hole gas. The latter is modelled with different initial mass functions taking into account the available constraints over the initial primordial black hole abundances. We find that certain populations with narrow initial mass functions are capable to produce significant changes in the scale factor and the entropy.Comment: 8 pages, 7 figures. Modified to match the published versio

Primordial black hole evolution in two-fluid cosmology

Several processes in the early Universe might lead to the formation of primordial black holes with different masses. These black holes would interact with the cosmic plasma through accretion and emission processes. Such interactions might have affected the dynamics of the Universe and generated a considerable amount of entropy. In this paper, we investigate the effects of the presence of primordial black holes on the evolution of the early Universe. We adopt a two-fluid cosmological model with radiation and a primordial black hole gas. The latter is modelled with different initial mass functions taking into account the available constraints over the initial primordial black hole abundances.We find that certain populations with narrow initial mass functions are capable to produce significant changes in the scalefactor and the entropy.Fil: Gutiérrez, Eduardo Mario. Provincia de Buenos Aires. Gobernación. Comisión de Investigaciones Científicas. Instituto Argentino de Radioastronomía. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata. Instituto Argentino de Radioastronomía; ArgentinaFil: Vieyro, Florencia Laura. Universidad de Barcelona; España. Provincia de Buenos Aires. Gobernación. Comisión de Investigaciones Científicas. Instituto Argentino de Radioastronomía. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata. Instituto Argentino de Radioastronomía; ArgentinaFil: Romero, Gustavo Esteban. Provincia de Buenos Aires. Gobernación. Comisión de Investigaciones Científicas. Instituto Argentino de Radioastronomía. Consejo Nacional de Investigaciones Científicas y Técnicas. Centro Científico Tecnológico Conicet - La Plata. Instituto Argentino de Radioastronomía; Argentin