Econophysics: A new discipline

This paper debates the contribution of Econophysics to the economic or financial domains. Since the traditional approach performed by Economics or Finance has revealed to be insufficient in fully characterizing and explaining the correspondingly phenomena, we discuss whether Econophysics can provide a new insight onto these matters. Thus, an assessment is presented in order to weight its potential opportunities and limitations. This is particularly relevant as it is widely recognized that during its yet short existence Econophysics has experienced a growing interest not only by physicists but also by economists in searching for new approaches that could help explaining existing questions. In fact, many papers have been submitted, some books have been released, new journals have been published, several conferences have been held, a site is maintained -- http://www.unifr.ch/econophysics where news, events, book reviews, papers and a blog are exhibited; a 3-year licentiate studies (University of Silesia [1]) and a B.Sc. course (University of Wroclaw [2]) have been created and also some Ph.D. thesis have been written. Therefore, a fundamental question arises: Is this just a fad or is it something much more consistent that will prevail? This is what this paper addresses

Poverty and Survival

A recent literature highlights the uncertainty concerning whether economic growth has any causal protective effect on health and survival. But equal rates of growth often deliver unequal rates of poverty reduction and absolute deprivation is more clearly relevant. Using state-level panel data for India, we contribute the first estimates of the impact of changes in poverty on infant survival. We identify a significant within-state relationship which persists conditional upon state income, indicating the size of survival gains from redistribution in favour of households below the poverty line. The poverty elasticity declines over time after 1981. It is invariant to controlling for income inequality but diminished upon controlling for education, fertility and state health expenditure, and eliminated once we introduce controls for omitted trends.poverty, income, inequality, infant mortality, India, economic reform, state health expenditure, panel data

The Captain of the Men of Death and His Shadow: Long-Run Impacts of Early Life Pneumonia Exposure

We exploit the introduction of sulfa drugs in 1937 to identify the causal impact of exposure to pneumonia in infancy on later life well-being and productivity in the United States. Using census data from 1980-2000, we find that cohorts born after the introduction of sulfa experienced increases in schooling, income, and the probability of employment, and reductions in disability rates. These improvements were larger for those born in states with higher pre-intervention levels of pneumonia as these were the areas that benefited most from the availability of sulfa drugs. These estimates are, in general, larger and more robust to specification for men than for women. With the exception of cognitive disability and poverty for men, the estimates for African Americans are smaller and less precisely estimated than those for whites. This is despite our finding that African Americans experienced larger absolute reductions in pneumonia mortality after the arrival of sulfa. We suggest that pre-Civil Rights barriers may have inhibited their translating improved endowments into gains in education and employment.early childhood, infectious diseases, pneumonia, medical innovation, antibiotics, schooling, income, disability, mortality trends

Child Farm Labour: Theory and Evidence

This paper presents a dynamic model of child labour supply in a farming household. The model clarifies the roles of land, income and household size, allowing labour and credit market imperfections. If labour markets are imperfect, child labour is increasing in farm size and decreasing in household size. The effect of income is shown to depend upon whether the effective choice is between work and school or whether leisure is involved. Credit market constraints tend to dilute the positive impact of farm size and reinforce the negative effect of income. The model is estimated for rural Ghana and Pakistan. A striking finding of the paper is that the effect of farm size at given levels of household income is significantly positive for girls in both countries, but not for boys. This is consistent with the finding, in other contexts, that females exhibit larger substitution effects in labour supply. Increases in household income have a negative impact on work for boys in Pakistan and for girls in Ghana but there is no income effect for the other two groups of children. We find interesting effects of household size and composition, female headship, and mothers' post-secondary education.Child labour, poverty, female education, agricultural households, Ghana, Pakistan.

Gradients of the Intergenerational Transmission of Health in Developing Countries

This paper investigates the sensitivity of the intergenerational transmission of health to exogenous changes in income, education and public health, changes that are often delivered by economic growth. It uses individual survey data on 2.24 million children born to 600000 mothers during 1970-2000 in 38 developing countries. These data are merged with macroeconomic data by country and birth cohort to create an unprecedentedly large sample of comparable data that exhibit massive variation in maternal and child health as well as in aggregate economic conditions. The country-level panel is exploited to control for aggregate shocks and trends in unobservables within countries, while a panel of children within mother is exploited to control for family-specific endowments and neighbourhood characteristics. Child health is indicated by infant survival and maternal health by (relative) height. We find that improvements in maternal education, income and public health provision that occur in the year of birth and the year before birth limit the degree to which child health is tied to family circumstance. The interaction (gradient) effects are, in general, most marked for shorter women suggesting that children are more likely to bear the penalty exerted by poor maternal health if they are conceived or born in adverse socio-economic conditions.intergenerational transmission, early life conditions, health, infant mortality, height, growth, income, education, public health, gene, environment, in utero

Intergenerational Persistence in Health in Developing Countries: The Penalty of Gender Inequality?

This paper is motivated to investigate the often neglected payoff to investments in the health of girls and women in terms of next generation outcomes. This paper investigates the intergenerational persistence of health across time and region as well as across the distribution of maternal health. It uses comparable micro-data on as many as 2.24 million children born of about 0.6 million mothers in 38 developing countries in the 31 year period, 1970-2000. Mother’s health is indicated by her height, BMI and anemia status. Child health is indicated by mortality risk and anthropometric failure. We find a positive relationship between maternal and child health across indicators and highlight non-linearities in these relationships. The results suggest that both contemporary and childhood health of the mother matter and that the benefits to the next generation are likely to be persistent. Averaging across the sample, persistence shows a considerable decline over time. Disaggregation shows that the decline is only significant in Latin America. Persistence has remained largely constant in Asia and has risen in Africa. The paper provides the first cross-country estimates of the intergenerational persistence in health and the first estimates of trends.intergenerational persistence, mobility, health, developing countries, cohort trends, inequality

Where Have All the Young Girls Gone? Identification of Sex Selection in India

This paper presents the first estimates of the causal effect of facilities for prenatal sex diagnosis on the sex ratio at birth in India. It conducts a triple difference analysis across cohort, birth order and sex of previous births. Treated births are those that occur after prenatal sex detection becomes available at birth order two or more in families that have not yet had their desired number of sons (or daughters). The three implied control groups are births that occur pre-ultrasound, births of first order and births that occur after the family has achieved its desired sex mix of births. We identify a significant divergence between the treated and control groups. We consider alternative hypotheses and conduct an array of robustness checks to show that the divergence of the sex ratio of the treated group from the normal biological range that characterizes the control groups is on account of female foeticide. We estimate that as many as 0.48 million girls p.a. were selectively aborted during 1995-2005, which is more than the number of girls born in the UK each year. The estimates suggest that Indian families desire two boys and a girl; previous studies often assume that the desire is for at least one boy. The incentive to conduct sex selection is increasing in birth order and family socioeconomic status, both consistent with stronger incentives to sex-select as fertility approaches its target.sex selection, abortion, sex ratio, son preference, prenatal sex diagnosis, ultrasound, gender, India, triple difference estimator, differences in differences

Influence of low-density polyethylene addition on coking pressure

Different amounts of low-density polyethylene (LDPE) were added to a bituminous coal used to produce metallurgical coke. The effect of the plastic waste on the carbonization process and more exactly, on the coking pressure were investigated. A movable wall oven at semi-pilot scale was used for measuring coking pressure generated. It was found that coking pressure increases for low LDPE addition levels (1-3 wt.%); however higher amounts of LDPE reduce coking pressure. To explain this behavior different blends of the coal and the residue were pyrolysed at three different temperatures (450, 500 and 600 C) in a Gray-King apparatus. The results show that LDPE causes a modification in the pyrolysis process and also influences the swelling process of the plastic stage. The increase of the coking pressure at low LDPE addition rates is associated with a less permeable coal plastic layer, which prevents the removal of the decomposition products and causes their retention in the semicoke matrix, evolving them in the post-plastic stage. Coking pressure decrease at high LDPE addition rates can be due to the charge shrinkage and the better permeability to the migration of oil components, which suggest a lower interaction between the coal and the LDPE. A delay in the degradation of LDPE is confirmed by the data provided by DRIFT and SEM