Estimating the direct costs of social conflicts: road blockings in Bolivia
Social conflicts are a serious obstacle to economic growth in many Latin American societies, affecting economic activity both in the short and the long run. The purpose of this paper is twofold. First, we develop a methodology to estimate the direct, short-run impact of frequently occurring exponents of local conflicts, such as road blockings, on economic activity. The methodology is based on using high frequency (daily) data to estimate the relation between a proxy for economic activity and the occurrence of road blockings. Careful analysis of impulse-response functions traces the effect of such local social conflicts on economic activity. This information is combined with the aggregate annual time series relation between gross domestic product (GDP) and the high frequency proxy for economic activity to estimate the direct cost of local social conflicts for the economy as a whole. Second, we apply the proposed methodology to analyse the direct economic costs of road blockings in Bolivia, using detailed daily information for the year 2003. The results show that these costs are large. Stronger institutions are a critical factor in reducing the prevalence of such conflicts and to avoid the huge economic costs that they imply. Copyright © 2008 John Wiley & Sons, Ltd.
(This abstract was borrowed from another version of this item.)
|Date of creation:||2007|
|Date of revision:|
|Note:||Conference paper presented at: (11-13 julio 2007: Cochabamba)|
|Contact details of provider:|| Postal: |
Web page: http://difusion.ulb.ac.be
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Verardi, Vincenzo, 2005.
"Electoral systems and income inequality,"
Elsevier, vol. 86(1), pages 7-12, January.
- Perron, Pierre & Vogelsang, Timothy J, 1992.
"Nonstationarity and Level Shifts with an Application to Purchasing Power Parity,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 10(3), pages 301-20, July.
- Vogelsang, T.I. & Perron, P., 1991. "Nonstationary and Level Shifts With An Application To Purchasing Power Parity," Papers 359, Princeton, Department of Economics - Econometric Research Program.
- Alberto Alesina & Dani Rodrik, 1991.
"Distributive Politics and Economic Growth,"
NBER Working Papers
3668, National Bureau of Economic Research, Inc.
- Knack, Stephen & Keefer, Philip, 1997. "Does Social Capital Have an Economic Payoff? A Cross-Country Investigation," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1251-88, November.
- Vincenzo Verardi, 2004. "Electoral systems, racial tension and decentralization," ULB Institutional Repository 2013/9895, ULB -- Universite Libre de Bruxelles.
- Bouton, Laurent & Gassner, Marjorie & Verardi, Vincenzo, 2008.
"Redistributing income under fiscal vertical imbalance,"
European Journal of Political Economy,
Elsevier, vol. 24(2), pages 317-328, June.
- Laurent Bouton & Marjorie Gassner & Vincenzo Verardi, 2008. "Redistributing income under fiscal vertical imbalance," ULB Institutional Repository 2013/9905, ULB -- Universite Libre de Bruxelles.
- Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
- Easterly, William & Kremer, Michael & Pritchett, Lant & Summers, Lawrence H., 1993.
"Good policy or good luck?: Country growth performance and temporary shocks,"
Journal of Monetary Economics,
Elsevier, vol. 32(3), pages 459-483, December.
- William Easterly & Michael Kremer & Lant Pritchett & Lawrence H. Summers, 1993. "Good Policy or Good Luck? Country Growth Performance and Temporary Shocks," NBER Working Papers 4474, National Bureau of Economic Research, Inc.
- Michael Faye & John McArthur & Jeffrey Sachs & Thomas Snow, 2004. "The Challenges Facing Landlocked Developing Countries," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 5(1), pages 31-68.
- Shah, Anwar, 1998. "Balance, accountability, and responsiveness : lessons about decentralization," Policy Research Working Paper Series 2021, The World Bank.
- Faguet, Jean-Paul, 2004. "Does decentralization increase government responsiveness to local needs?: Evidence from Bolivia," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 867-893, March.
When requesting a correction, please mention this item's handle: RePEc:ulb:ulbeco:2013/9915. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Benoit Pauwels)
If references are entirely missing, you can add them using this form.