Browsing by Autor "Marcela Eslava"

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Ciclos políticos de la política fiscal con votantes opuestos al déficit. El caso colombiano
(Fondo de Cultura Económica, 2017) Marcela Eslava
Según algunos modelos teóricos, la manipulación electoral del gasto público puede tomar la forma de cambios en la composición del mismo, posiblemente sin afectar el déficit. La teoría también señala que la magnitud de cambios electorales en el gasto depende de las preferencias fiscales de los votantes. Este trabajo utiliza datos de gasto público y resultados electorales en municipios colombianos en un análisis integrado del comportamiento de los votantes y la dinámica del gasto público en periodos electorales. El hincapié es en la composición del presupuesto más que en su tamaño. Se encuentra que antes de elecciones los componentes del presupuesto que son más visibles y favorecidos por los votantes aumentan, mientras otros tipos de gasto caen. De manera congruente las perspectivas electorales futuras del partido en el poder son favorecidas por incrementos electorales del gasto “preferido”, mientras que incrementos electorales del déficit tienen el efecto contrario.
Estimating Production Functions in Differentiated-Product Industries with Quantity Information and External Instruments
(RELX Group (Netherlands), 2021) Nicolas Roux; Marcela Eslava; Santiago Franco; Eric Verhoogen
Estimating Production Functions in Differentiated-Product Industries with Quantity Information and External Instruments
(RELX Group (Netherlands), 2021) Nicolas Roux; Marcela Eslava; Santiago Franco; Eric Verhoogen
Estimating Production Functions in Differentiated-Product Industries with Quantity Information and External Instruments
(RELX Group (Netherlands), 2021) Nicolas Roux; Marcela Eslava; Silvio Franco; Eric Verhoogen
Inequality and market power in Latin America and the Caribbean
(Oxford University Press, 2025) Marcela Eslava; Álvaro García-Marín; Julián Messina
Abstract This study estimates firm-level markups (product market power) and markdowns (labor market power) for formal firms in 16 Latin American and Caribbean (LAC) countries and 28 economically comparable but less unequal countries. Objectives include (1) contrasting market power in LAC firms with peers; (2) evaluating its effect on firm-level labor revenue share; and (3) assessing its influence on the overall labor income share, considering market power’s distribution, labor share and firm size. Findings reveal LAC firms’ average price markup is 87% over marginal costs, and wages are 38% below labor’s marginal revenue product. The firm-level negative link between labor share and market power mainly stems from labor market power, more pronounced in larger firms. This influences the total labor share and income distribution. Yet, LAC’s market power intensity and distribution don’t surpass its peers, nor do they contribute more to inequality.
Job Creation in Colombia Versus the USA: ‘Up‐or‐out Dynamics’ Meet ‘The Life Cycle of Plants’
(Wiley, 2022) Marcela Eslava; John Haltiwanger; Álvaro Pinzón
One of the most striking contrasts between the anatomies of the business sectors in higher‐ versus lower‐income economies is the overwhelming dominance of very small production units in the latter. Contrasting manufacturing sector data for Colombia and the USA, we show that weaker ‘up‐or‐out’ dynamics are behind this pattern and behind weaker average lifecycle growth. Dampened growth dynamics, not only in terms of upward mobility but also for exit and downward mobility, characterize both micro‐establishments and young establishments in Colombia relative to their US counterparts. These patterns lead to a more dominant role of small older businesses in accounting for employment. Since dynamic selection among startups is a crucial driver of productivity growth in the USA, our findings point to a shortage of high‐growth entrepreneurship and a relative high likelihood of long‐run survival for small, likely unproductive plants, as two key elements at the heart of the development problem. We also show that analysis of establishment lifecycle dynamics based solely on cross‐sectional data substantially underestimates lifecycle growth.
Legislative Fragmentation and Government Spending in Presidential Democracies: Bringing Ideological Polarization into the Picture
(Wiley, 2016) Marcela Eslava; Oskar Nupia
We claim that, in presidential democracies, the effect of increasing fragmentation on government spending should be conditional on polarization, defined as the ideological distance between the government's party and other parties in Congress. We build a model where this result follows from negotiations between the legislature and an independent government seeking the approval of its initiatives—as in presidential democracies. Using cross‐country data over time, we test the empirical validity of our claim finding that, in presidential democracies, there is indeed a positive effect of fragmentation only when polarization is sufficiently high. The same is not true for parliamentary democracies.
Scarring Recessions and Credit Constraints: Evidence from Colombian Firm Dynamics
(RELX Group (Netherlands), 2010) Marcela Eslava; Arturo Galindo; Marc Hofstetter; Alejandro Izquierdo
The Effect of Structural Reforms on Productivity and Profitability Enhancing Reallocation: Evidence from Colombia
(2004) Marcela Eslava; John Haltiwanger; Adriana D. Kugler; Maurice Kügler
In the U.S., some sectoral evidence suggests that growth is driven mainly by productivity enhancing reallocation. In countries with greater barriers to entry and imperfect competition, the reallocation process may be inefficient. Therefore, for developing countries, an open question is whether reallocation is productivity enhancing. Using a unique plant-level longitudinal dataset for Colombia for the period 1982-1998, we examine the interaction between market allocation, productivity and profitability. Given the important trade, labor and financial market oriented reforms in Colombia in 1990, we explore whether and how the contribution of reallocation changed. Our data include plant-level quantities and prices. Using plant prices, we propose a sequential methodology to estimate productivity and demand shocks. First, with plant-level physical output data, we estimate total factor productivity (TFP) using downstream demand to instrument for inputs. Then, with plant-level price data, we estimate demand shocks and mark-ups in the inverse-demand equation, using TFP to instrument for output. We characterize the evolution of TFP and demand shock distributions. Market reforms are associated with rising overall productivity that is driven by reallocation away from low-and towards high-productivity businesses; and, the allocation of activity across businesses is less driven by demand factors.
THE POLITICAL ECONOMY OF FISCAL DEFICITS: A SURVEY
(Wiley, 2010) Marcela Eslava
Abstract This paper surveys recent literature, both theoretical and empirical, regarding political explanations for fiscal deficits. Political economy suggests conflicts of interest may lie behind the emergence of deficits: (1) Opportunistic politicians generate deficits to win elections, even in conflict with general welfare; (2) Conflicts of interests between politicians’ partisan preferences create incentives for (at least some) incumbents to run deficits and (3) Conflicts of interest between different social groups or regions generate tensions in the allocation of government resources leading to overspending. This paper reviews these different strands of the literature. It also covers contributions that highlight the crucial role of budget institutions in determining the extent to which the political motivations to generate deficits are indeed translated into poor fiscal outcomes. Promising avenues for future research are highlighted.
The Size and Life-Cycle Growth of Plants: The Role of Productivity, Demand and Wedges
(European Organization for Nuclear Research, 2022) Marcela Eslava; John Haltiwanger; Nicolás Urdaneta
This material includes the replication material for "The Size and Life-Cycle Growth of Plants: The Role of Productivity, Demand and Wedges" by Marcela Eslava, John Haltiwanger and Nicolas Urdaneta. Included are software, public domain databases and a readme file describing data, software and instructions for obtaining access to the confidential micro data at DANE (Columbian National Statistical Agency).
The Size and Life-Cycle Growth of Plants: The Role of Productivity, Demand and Wedges
(European Organization for Nuclear Research, 2022) Marcela Eslava; John Haltiwanger; Nicolás Urdaneta
This material includes the replication material for ""The Size and Life-Cycle Growth of Plants: The Role of Productivity, Demand and Wedges" by Marcela Eslava, John Haltiwanger and Nicolas Urdaneta. Included are software, public domain databases and a readme file describing data, software and instructions for obtaining access to the confidential micro data at DANE (Columbian National Statistical Agency).