{"title":"The impact of educated leaders on economic development: Evidence from India","authors":"Chandan Jain , Shagun Kashyap , Rahul Lahoti , Soham Sahoo","doi":"10.1016/j.jce.2023.05.001","DOIUrl":"https://doi.org/10.1016/j.jce.2023.05.001","url":null,"abstract":"<div><p>Although formal education is often considered an indicator of political leaders’ quality, the evidence on the effectiveness of educated leaders is mixed. Besides, minimum education qualifications are increasingly being used as requirements for contesting elections, making it critical to understand the role of politicians’ education in their performance. This study investigates the impact of electing an educated politician on economic development in the politician’s constituency in India. The analysis uses constituency-level panel data on the intensity of night-time lights to measure economic activity. The identification strategy is based on a regression discontinuity design that exploits quasi-random outcomes of close elections between educated and less-educated politicians. The results show that narrowly electing a graduate leader, as compared to a non-graduate leader, in the state assembly constituency increases the growth rate of night-time lights by about 3 percentage points in the constituency. As pathways, graduate leaders are found to improve the provision of roads, electricity, and power; however, they do not significantly impact the overall provision of public goods. In comparison with findings from other studies in the literature, these results suggest that the impact of formal education of the leader is weaker than the leader’s other characteristics, such as gender or criminality.</p></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49754093","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Fabian ten Kate , Mariko J. Klasing , Petros Milionis
{"title":"Societal diversity, group identities and their implications for tax morale","authors":"Fabian ten Kate , Mariko J. Klasing , Petros Milionis","doi":"10.1016/j.jce.2023.04.005","DOIUrl":"https://doi.org/10.1016/j.jce.2023.04.005","url":null,"abstract":"<div><p>We study how the tax morale of individuals is influenced by societal diversity in their place of residence. Using data from the World Value Survey, we compare the effects that diversity has on self-reported measures of tax morale at the national, sub-national and individual level. We show first that, both across countries and within countries across sub-national regions, greater diversity is associated with lower average levels of tax morale. We then document that within countries and regions tax morale is lower among individuals who are less similar to others and this effect operates more strongly in places characterized by higher levels of diversity. This pattern applies to diversity in terms of different social cleavages, including income, ethnicity, language or religion, but is particularly pronounced when it comes to diversity in terms of cultural values. This suggests that social identification is important for how people perceive their responsibility of paying taxes.</p></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49754091","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Catholics, Protestants and Muslims: Similar work ethics, different social and political ethics","authors":"Miguel Abellán","doi":"10.1016/j.jce.2023.02.004","DOIUrl":"https://doi.org/10.1016/j.jce.2023.02.004","url":null,"abstract":"<div><p>This paper employs data from the World Values Survey (1995–2020) and the European Values Study (1999–2020) to test three hypotheses on attitudinal differences between Catholics, Protestants and Muslims: (1) the <em>work ethic hypothesis,</em> which covers attitudes towards work and some fundamental characteristics of the market economy; (2) the <em>social ethic hypothesis</em>, which concerns interpersonal trust, ethical standards and attitudes towards gender equality; (3) the <em>political ethic hypothesis</em>, which involves attitudes towards democracy and political violence, institutional trust and preferences for government-organized redistribution. The empirical analysis provides very little support for the <em>work ethic hypothesis</em> but solid support for the <em>social</em> and <em>political ethic hypothesis</em>. Although the results should be ultimately interpreted as partial correlations, they support the following argument. Market forces and the rise of post-materialist values may have dissolved the original role of a work ethic rooted in religion (especially in the Catholic and Protestant world). Yet, the socio-political ethic associated with Catholicism, Protestantism and Islam continues to manifest itself in attitudinal differences concerning interpersonal trust, ethical standards and gender equality, and in political preferences. A complementary analysis of regions with a historically strong influence of Catholicism, Protestantism and Islam supports this argument and suggests that the current attitudinal differences between the three religions are more related to their cultural and historical legacy than to current personal commitment to their specific doctrines.</p></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49754585","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Firms’ access to finance in resource-based countries and the financial resource curse","authors":"Olivier Damette , Sandrine Kablan , Clément Mathonnat","doi":"10.1016/j.jce.2023.04.004","DOIUrl":"https://doi.org/10.1016/j.jce.2023.04.004","url":null,"abstract":"<div><p>Using a panel of more than 156 000 firms surveyed in 140 countries over the 2003–2019 period, this paper addresses the issue of the financial resource curse through a new channel that thus far has not been accounted for in the literature, namely, firms’ access to finance. To do this, our econometric analysis is based on an original approach combining microeconomic level data on firms’ access to finance and macroeconomic level data on countries’ level of natural resource rents, with a focus on energy rents (oil, gas and coal). By doing so, we are able to investigate in a more precise and disaggregated way the mechanisms explaining why resource-based countries are associated with less developed financial systems. Using panel regressions, we find significant and robust evidence that firms operating in countries characterized by a high level of natural resource rents suffer from less access to external financing. Moreover, depending on two important transmission channels, namely, the quality of institutions and the extent of supply constraints, we find heterogeneities in the relationship between firms’ access to finance and countries’ level of natural resource rents. In addition, we show that the countries’ level of natural resource rents has a significant and negative correlation with firms’ access to finance only for firms that do not operate in the natural resource sector. This provides new evidence of the Dutch disease phenomenon, since the lack of firms’ financing can also be an explanation for the atrophy of sectors unrelated to the natural resource sector.</p></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49767546","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Maternity support and child health: Unintended gendered effects","authors":"Aishwarya Kekre , Kanika Mahajan","doi":"10.1016/j.jce.2023.03.002","DOIUrl":"https://doi.org/10.1016/j.jce.2023.03.002","url":null,"abstract":"<div><p>This paper evaluates a maternity support conditional cash transfer (CCT) scheme, launched in October 2011, on short and long-run health outcomes of children in India. We estimate intent-to-treat effects of the program by exploiting a natural experiment arising from select geographical implementation and the eligibility of program benefits for first/second born children using the National Family Health Survey-4 data. We find an increase in birth weight, duration of breastfeeding and long term weight-forage, with a larger impact on male children. The effects are positive for height-for-age and negative for infant mortality, albeit insignificant, and significantly negative for neonatal mortality but only over a longer time period. These results are in contrast to the existing two studies in the nascent literature, which in the context of limited availability of healthcare services, find no effect of maternity support CCTs on child health outcomes. Thus, our findings show that institutional factors that ensure access to local health infrastructure for meeting the imposed conditionalities are important for the success of maternal CCT schemes.</p></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49754234","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Is property driving income distribution? – An analysis of the linkage between income and wealth in Finland, France and Spain","authors":"Ilja Kristian Kavonius , Veli-Matti Törmälehto","doi":"10.1016/j.jce.2023.02.006","DOIUrl":"https://doi.org/10.1016/j.jce.2023.02.006","url":null,"abstract":"<div><p>In this article, the link between financial wealth and pre-tax household income distribution is scrutinised for three European countries using a conceptually fully consistent macro framework. First, national balance sheets are combined with the related income flows. After this, income flows that are not property income but that are considered part of national income (e.g., wages and salaries) are added, the national income flows are broken down by institutional sector, and the household sector income flows separated. Finally, distributional household microdata are used to break down the aggregate household sector income flows by income decile. The article utilises this framework to analyse the evolution of rates of return and capital and labour shares, as well as the way in which the property income flows created by financial wealth have affected household primary income distribution.</p></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49760368","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A rising tide that lifts all boats: An analysis of economic freedom and inequality using matching methods","authors":"Justin T. Callais , Andrew T. Young","doi":"10.1016/j.jce.2023.03.001","DOIUrl":"https://doi.org/10.1016/j.jce.2023.03.001","url":null,"abstract":"<div><p>The cross-country relationship between economic freedom and inequality is explored using matching methods. This approach addresses selection bias and endogeneity generally better than extant studies. Meaningful increases in the Fraser Institute's Economic Freedom of the World (EFW) index are related to changes in (i) decile income shares, (ii) decile income levels, and (iii) Gini coefficients. Increased economic freedom is associated with significant gains across the income distribution. It is also associated with modest increases in inequality – associated particularly with gains in the top income decile.</p></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49754122","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Asli Demirgüç-Kunt, Michael Lokshin, Vladimir Kolchin
{"title":"Effects of public sector wages on corruption: Wage inequality matters","authors":"Asli Demirgüç-Kunt, Michael Lokshin, Vladimir Kolchin","doi":"10.1016/j.jce.2023.03.005","DOIUrl":"https://doi.org/10.1016/j.jce.2023.03.005","url":null,"abstract":"<div><p>The paper uses a new country-level, panel data set to study the effect of public sector wages on corruption. The results show that wage inequality in the public sector is an important determinant of the effectiveness of anti-corruption policies. Increasing the wages of public officials could help reduce corruption in countries with low public sector wage inequality. In countries where public sector wages are highly unequal, however, raising the wages of government employees could increase corruption. These results are robust to a wide range of empirical model specifications, estimation methods, and distributional assumptions. Combining increases in public sector wages with policies affecting wage distribution could help policy makers design cost-effective programs to reduce corruption in their countries.</p></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49754669","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Past exposure to macroeconomic shocks and populist attitudes in Europe","authors":"Despina Gavresi , Anastasia Litina","doi":"10.1016/j.jce.2023.04.002","DOIUrl":"https://doi.org/10.1016/j.jce.2023.04.002","url":null,"abstract":"<div><p>This paper explores the interplay between past exposure to macroeconomic shocks and populist attitudes. We document that individuals who experienced a macroeconomic shock during their impressionable years (between 18 and 25 years of age), are currently more prone to voting for populist parties, and manifest lower trust both in national and European institutions. We use data for EU countries from the European Social Survey (ESS) to construct the differential individual exposure to macroeconomic shocks during impressionable years. Our findings suggest that it is not only current exposure to shocks that matters (see e.g., Guiso et al., 2020) but also past exposure to economic recessions, which has a persistent positive effect on the rise of populism. Interestingly, the interplay between the two, i.e., past and current exposure to economic shocks, has a mitigating effect on the rise of populism. Individuals who were exposed to economic shocks in the past are less likely to manifest populist attitudes when faced with a current crisis, as suggested by the experience-based learning literature.</p></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49767545","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Staying on top: Political cycles in private bank lending","authors":"Zuzana Fungáčová , Koen Schoors , Laura Solanko , Laurent Weill","doi":"10.1016/j.jce.2023.03.003","DOIUrl":"https://doi.org/10.1016/j.jce.2023.03.003","url":null,"abstract":"<div><p>The incentives for state-owned banks to boost lending before elections in order to improve the re-election odds of incumbent politicians are well recognized. We hypothesize that political influence on lending behavior in electoral autocracies extends to all banks, irrespective of ownership or political connections. Employing monthly data on individual banks, we consider the lending behavior of Russian banks in the four presidential elections held between 2004 and 2019. We find that both state-owned and private banks increased their lending before these presidential elections. Controlling for economic fluctuations, the pre-election lending surge is followed by a deterioration of loan quality the following year. We show that private banks are rewarded for boosting their lending before an election with government deposits after the election. Our findings support the view that the authorities in electoral autocracies such as Russia have the capacity and means to influence lending of private and state-owned banks in pursuit of favorable election outcomes.</p></div>","PeriodicalId":48183,"journal":{"name":"Journal of Comparative Economics","volume":null,"pages":null},"PeriodicalIF":2.7,"publicationDate":"2023-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49756204","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}