HANDBOOK OF DEVELOPMENT ECONOMICS VOLUME HANDBOOKS IN ECONOMICS Series Editors KENNETH J ARROW MICHAEL D INTRILIGATOR AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO HANDBOOK OF DEVELOPMENT ECONOMICS VOLUME Edited by T PAUL SCHULTZ Malcolm K Brachman Professor of Economics, Yale University, CT, USA and JOHN STRAUSS Professor of Economics, University of Southern California, USA AMSTERDAM • BOSTON • HEIDELBERG • LONDON NEW YORK • OXFORD • PARIS • SAN DIEGO SAN FRANCISCO • SINGAPORE • SYDNEY • TOKYO North-Holland is an imprint of Elsevier Radarweg 29, PO Box 211, 1000 AE Amsterdam, The Netherlands Linacre House, Jordan Hill, Oxford OX2 8DP, UK First edition 2008 ©2008 Elsevier B.V All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of 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for this book is available from the British Library ISBN: 978-0-444-53100-1 ISSN: 0169-7218 (Handbooks in Economics series) ISSN: 1573-4471 (Handbook of Development Economics series) For information on all North-Holland publications visit our website at books.elsevier.com Printed and bound in the UK 08 09 10 11 12 10 INTRODUCTION TO THE SERIES The aim of the Handbooks in Economics series is to produce Handbooks for various branches of economics, each of which is a definitive source, reference, and teaching supplement for use by professional researchers and advanced graduate students Each Handbook provides self-contained surveys of the current state of a branch of economics in the form of chapters prepared by leading specialists on various aspects of this branch of economics These surveys summarize not only received results but also newer developments, from recent journal articles and discussion papers Some original material is also included, but the main goal is to provide comprehensive and accessible surveys The Handbooks are intended to provide not only useful reference volumes for professional collections but also possible supplementary readings for advanced courses for graduate students in economics KENNETH J ARROW and MICHAEL D INTRILIGATOR v This page intentionally left blank CONTENTS OF THE HANDBOOK VOLUME PART 1: ECONOMIC DEVELOPMENT—CONCEPTS AND APPROACHES Introduction T.N SRINIVASAN Chapter The Concept of Development AMARTYA SEN Chapter The Roots of Development Theory W ARTHUR LEWIS Chapter Alternative Approaches to Development Economics PRANAB BARDHAN Chapter Analytics of Development: Dualism GUSTAV RANIS Chapter Economic Organization, Information, and Development JOSEPH E STIGLITZ Chapter Long-run Income Distribution and Growth LANCE TAYLOR and PERSIO ARIDA PART 2: STRUCTURAL TRANSFORMATION Introduction HOLLIS CHENERY Chapter Patterns of Structural Change MOSHE SYRQUIN vii viii Chapter The Agricultural Transformation C PETER TIMMER Chapter Industrialization and Trade HOWARD PACK Chapter 10 Saving and Development MARK GERSOVITZ Chapter 11 Migration and Urbanization JEFFREY G WILLIAMSON PART 3: HUMAN RESOURCES AND LABOR MARKETS Introduction T.N SRINIVASAN Chapter 12 Economic Approaches to Population Growth NANCY BIRDSALL Chapter 13 Education Investments and Returns T PAUL SCHULTZ Chapter 14 Health and Nutrition JERE R BEHRMAN and ANIL B DEOLALIKAR Chapter 15 Labor Markets in Low-Income Countries MARK R ROSENZWEIG Chapter 16 Credit Markets and Interlinked Transactions CLIVE BELL VOLUME PART 4: PLANNING AND RESOURCE ALLOCATION Contents of the Handbook Contents of the Handbook Introduction HOLLIS CHENERY Chapter 17 Short-Run Macroeconomics PERSIO ARIDA and LANCE TAYLOR Chapter 18 Multisectoral Models SHERMAN ROBINSON Chapter 19 Income Distribution and Development IRMA ADELMAN and SHERMAN ROBINSON Chapter 20 Taxation for Developing Countries NICHOLAS STERN and EHTISHAM AHMAD Chapter 21 Project Evaluation in Theory and Practice LYN SQUIRE PART 5: INTERNATIONAL ASPECTS Introduction T.N SRINIVASAN Chapter 22 International Cooperation PAUL STREETEN Chapter 23 Trade and Development CHRISTOPHER BLISS Chapter 24 Alternative Perspectives on Trade and Development DAVID EVANS Chapter 25 Foreign Public Capital Flows JONATHAN EATON ix I-20 3877, 3882, 3884, 3885, 3887, 3904n, 3905, 3906, 3912, 3955, 3968, 3974n, 3980, 3981, 3986, 3987, 3988n, 3989n, 3991, 3991n, 3993, 3995, 3997, 4002, 4005, 4006, 4008, 4009, 4011, 4013, 4014, 4021, 4023, 4024, 4026, 4026n Tolentino-Mayo, L 4014 Tomes, N 3273, 3275, 3521, 3529, 3720 Tooby, J 3770 Topalova, P 3165, 3166, 3625, 3666, 3680, 3681 Topf, R 3174 Topolova, P 3178 Townsend, R 3447 Townsend, R.M 3061, 3205, 3715, 3732, 3755n, 3756, 3771 Tran, L.H 3735, 3739, 3745, 3748n, 3749 Treisman, D 3157 Trejos, C 3630 Trivedi, P.K 3316 Trivers, R.L 3761, 3762, 3765 Trochim, W 3882 Trussell, J 3214 Turk, C 3663 Tyler, J.H 3549n Udry, C 3094, 3096, 3100, 3158n, 3164–3166, 3202, 3204, 3206, 3209, 3228, 3308, 3326n, 3328–3330, 3330n, 3331, 3332, 3717, 3722n, 3725, 3731, 3735, 3741 UNAIDS 3450 UNAIDS/WHO 3450 UNDP 3119n, 3120 UNDP, and Institute for Development Studies University of Nairobi 3120 UNDP, and the Institute for National Planning 3120 UNDP, and the Stockholm Environment Institute 3120 UNDP, BPS-Statistics Indonesia, and BAPPENAS 3120 UNESCO 3567–3569 United Nations 3251, 3563 Ureta, M 3532, 3739 Urquiola, M 3500n, 3505, 3886, 3950 Urzua, S 3825 US Census 3127n Vakis, R 3689, 4011, 4022n Valdivia, C 3615, 3616, 3673 Valverde, V 3427 Author Index Valyasevi, A 3597 Van, P 3610, 3657, 3670, 3677n, 3682, 3685, 3693 van de Walle, D 3796, 3798, 3810, 3811, 3819 van den Berg, G 3423 van den Bosch, C 3597 van den Brink, R 3717 Van den Heever, A.M 3363 van der Gaag, L 3318 van der Klaaus, W 4005 van der Klaauw, B 3226 Van der Klaauw, W 3812, 3812n, 3830n, 3882, 3882n, 3884, 3885, 3885n van der Meulen, J.H.P 3399, 3421 Van Huyck, J.B 3725 van Lommel, G 3226 Vandermeersch, C 3235 Vashishtha, P.S 3061 Vaupel, J.W 3291, 3423 Velez, E 3736, 3736n Vélez-Grajales, V 3872n, 4011, 4013, 4014 Vella, F 3811n Ventelou, B 3359 Vera-Hernandez, M 3829, 4018 Verba, S 3174, 3177n Verbeek, M 3811n Vermeersch, C 3600–3602, 3941 Vermeulen, F 3326n Vernon, V 3197 Vigdor, J.L 3130 Vijverberg, W 3532 Villalpando, S 3998 von Braun, J 3202, 3209 Vytlacil, E.J 3346, 3401, 3825, 3879, 3879n, 3880, 3880n, 3881, 3890 Vytlacil, O 3939n Waaler, H 3411, 3424 Wachs, T 3598n Wacziarg, R 3135 Wade, R 3716 Wahba, J 3203, 3208, 3634, 3664, 3672, 3687, 3688 Wahba, S 3804, 3810, 3865, 3869n, 3870, 3906 Wai, L 3443 Waldfogel, J 3177n, 3601 Wales, T.J 3172, 3241, 3332, 4002 Walker, J.M 3142 Walker, J.R 3272n Walker, S 3598n Author Index Walker, S.P 3513n Walker, T 3061 Walker, T.S 3224 Wallsten, S.J 3740, 3745, 3748, 3748n Wang, Y 3491 Ware, J.E 3316, 3417 Wasserman, G 3598n Wasunna, M 3458, 3461 Waterlow, J.C 3427 Watkins, S.C 3063, 3106 Watson, M 3397 Webb, P.J 3202, 3209 Weesie, J 3726 Wegbreit, J 3451 Weil, D 3312 Weinberg, D 3491 Weinstein, J 3144, 3172 Weisbrod, B.A 3312n Weiss, C 3835 Weiss, Y 3396 Welch, F 3495, 3496 Welch, I 3087 Westen, D 3764 Westfall, P 3947n White, H 3653, 3835 Whitmore, D 3929, 3936 Widom, C 3653 Willard, D.E 3765 Williams, A 3310 Williams, S.R 3416 Williams, W 3427 Williamson, J.G 3252 Williamson, O 3310 Williamson, P 3597, 3599, 3929 Willig, R 3362, 3363 Willis, C 3143 Willis, R.J 3252, 3272n, 3492, 3544, 3655, 3656, 3674, 3675, 3735, 3739, 3740, 3742, 3745, 3749 Wilopo, S 3308, 3335, 3340, 3341, 3345–3349, 3398, 3442 Wilson, M 3193 Winter, P.D 3420 Winters, P 3757, 3977, 3994, 4001, 4002 Wise, D.A 3887, 3943, 3944 Witoelar, F 3414, 3446 Wodon, Q 3540, 3648, 3698, 3828 Wohlgemuth, D 3500n, 3501, 3505 Wolf, A.W 3513n Wolfe, B 3532 Wolfson, L.J 3406 I-21 Wolpin, K.I 3208, 3239, 3252, 3259, 3260, 3266–3270, 3272, 3272n, 3273, 3275, 3279, 3279n, 3286, 3291n, 3294–3296, 3341, 3400, 3402, 3434, 3438, 3443, 3504, 3524, 3528, 3543n, 3544, 3551, 3589, 3603, 3753, 3828n, 3839, 3839n, 3859, 3860, 3887, 3955, 3993, 4002, 4006, 4013, 4024, 4026 Wong, V.C 3906 Wongsith, M 3673 Woodbury, S 3804 Woodhead, M 3652 Woolcock, M 3834n Wooldridge, J.M 3324, 3344, 3346, 3460, 3512n, 3823n, 3944, 3946 Woolley, F 3331, 3332 World Bank 3145, 3150, 3358–3362, 3458, 3563, 3564, 3567, 3569, 3570 World Health Organization (WHO) 3308–3310, 3312, 3358, 3418, 3563, 3599, 3764 World Health Organization (WHO) and UNAIDS 3452 World Health Organization Mental Health Survey Consortium 3410 Worrall, T 3725, 3757 Wright, R 3491 Wydick, B 3663 Yamano, T 3439, 3456, 3457n, 3458–3462 Yamauchi, F 3109 Yang, D 3496, 3689 Yap, Y 4011 Yap, Y.-T 3541 Yatchew, A 3825n Yeo, J.S 10 Yin, W 3914, 3952 Yogo, M 3483n, 3681 Yosha, O 3771 Young, A 3296, 3359 Young, M 3598n Young, S 3947n Younger, S.D 3316, 3323n Yount, K 3216 Zajonc, R.B 3273, 3274 Zarghamee, H 3696 Zeckhauser, R.J 3311, 3312 Zelizer, V 3611, 3669, 3698 Zeng, Y 3281n Zhang, J 3225, 3275, 3283n, 3436 I-22 Zhang, L 3493 Zhang, X 3119n, 3421 Zhao, M 3603n Zheng, Z 3491, 3537 Zhou, X.-H 3827n Zibani, N 3632, 3641 Zilibotti, F 3695 Author Index Zimmerman, F.J 3533, 3533n Zinman, J 3898, 3913, 3955, 3956 Zitzewitz, E 3148, 3514, 3581n, 3795, 3860, 3907, 3927 Zivin, J.G 3308, 3314, 3338, 3358, 3360, 3462 Zurita, B 3444 Zweifel, P 3309 SUBJECT INDEX attenuation bias 3584, 3586, 3587, 3602 attrition 3396, 3397, 3432, 3435, 3800, 3803, 3816, 3915, 3943, 3989, 3990 attrition bias 3588 average effect of treatment on the treated (TT) 3851–3853 average treatment effect 3790, 3791, 3794, 3851–3853 awareness campaigns 3690 ability 3490, 3493, 3508, 3512–3516, 3532, 3533, 3537, 3541–3544 absenteeism 3599, 3600 academic performance 3570 access to credit 3264 access to public goods 3119 achievement tests 4009 achievements 4022 activities of daily living (ADLs) 3403, 3416, 3418 administrative data 3933 adult death 3453, 3457–3462 adult labor supply 3999 agricultural production 3067 agricultural shocks 3678, 3689 agricultural technology 3055 agricultural technology adoption 3088–3100 allocation 3199 altruism 3718–3724, 3727–3732, 3749, 3758, 3759, 3761, 3762, 3764, 3765, 3773 anemia 4014 anthropometry 3411, 3430, 3433, 3438 anti-poverty 3793, 3797 anti-poverty programs 3788, 3790, 3793, 3794, 3798, 3800–3803, 3808, 3809, 3821, 3822, 3827, 3828, 3830, 3831, 3834, 3835, 3837–3839 anticipated and unanticipated income shocks 3527 applications of matching estimators in development 3872 applications of matching in development 3871 applications of regression discontinuity methods 3885, 3886 Argentina 3570, 3601, 3805, 3806, 3808, 3814, 3817, 3818, 3822 Argentina’s Proempleo 3804 ARIS 3079 ARIS REDS 3073 Ashenfelter’s Dip 3856 assigned programs 3789, 3836 assortative matching 3212 assumptions of matching estimators 3862 attendance 3494, 3502, 3503, 3524, 3540 balancing tests 3869, 3870 balsakhi program 3917, 3939, 3943 Bangladesh 3264, 3799, 3828, 3832, 3833, 4019 Bangladesh Nutrition Survey 3064 bargaining 3719, 3727, 3728, 3761, 3763, 3768 bargaining effects 3970 bargaining power of the bride 3225 bargaining power of women 3225 baseline data 3815, 3822 baseline survey 3933 before–after estimator 3854, 3855 Behavioral changes as health inputs 3364 Belize 3570 bequest-constrained 3971 biomarker 3403, 3416 birth cohort 3422, 3423, 3430, 3431, 3443, 3446 birth order 3674 birth spacing 3674, 3675 birthweight 3420, 3424, 3425, 3427, 3428, 3430, 3434, 3437, 3438 body mass 3382, 3387, 3421, 3424 body mass index (BMI) 3387, 3388, 3411, 3412, 3415, 3421, 3424, 3425, 3427, 3440, 3449, 3457, 3463 Bolsa Escola 4019 Bolsa Familia 4018 bonded labor 3618, 3637, 3638, 3667 bonding 3727, 3763, 3773 bootstrapping 3807 bounds on impact 3826 Brazil 3621, 3651, 3689, 3691, 3697, 4018 I-23 I-24 burden of disease Subject Index 3564–3566 caliper matching 3864 Cambodia 3966, 4020 capital 3066 capital accumulation 3207 capitation grant 3498, 3500, 3501, 3505, 3506 causal effects of health 3308 causal inference 3899 Cebu Longitudinal Child Health and Nutrition Survey 3425 changes in household structure 3235–3240 – child fostering 3235 – government programs, effects of 3237, 3238 – household division 3239, 3240 – living arrangements of elderly 3237 – old age support 3238, 3239 – orphans 3236 child domestics 3629, 3637 child health 3652, 3656, 3810 child height 3591, 3596, 3998 child human capital 3252, 3257 child labor 3492, 3499, 3502, 3503, 3511, 3524, 3528, 3534, 3541, 3548–3550 child marriage 3655 child migrants 3668 child mortality 3267, 3289, 3564 child porters 3637 child quality 3266 child trafficking 3618, 3637, 3638 child work 3617 China 3265, 3282, 3680, 3798, 3820, 3834 choice-based sampling 3868 choosing matching variables 3868 clear the marriage market 3223 closed economy 3069 cluster-correlated Huber–White covariance matrix estimator 3946 coercion 3731, 3732 coffee 3631, 3665 cognitive development 4022 cognitive development and achievement tests 4012 cohesion of groups 3130, 3138 cohort 3414, 3428, 3430 cohort method 3060 collateral 3638, 3688 collective action 3121, 3122, 3138, 3142 collective model 3327, 3729, 3732, 3761 Colombia 3270, 3285, 3570, 3966, 4017 Colombia’s PACES 3505 Colombia’s voucher 3541 commitment 3724, 3756, 3757, 3773, 3774 common effect model 3854 common support 3794, 3810, 3813, 3820 common support region 3863, 3866 common impact 3825 common-impact model 3791 community characteristics 3121, 3123 comparative advantage 3199, 3200 comparison groups 3900, 3901, 3903, 3904, 3906, 3908, 3914–3916, 3920, 3921, 3923, 3925, 3926, 3929, 3930, 3931, 3933, 3934, 3936–3939, 3941–3944, 3948 3951 comparison (or control) group 3901 completed fertility 3284 compositional effects 3071, 3072 compulsory schooling laws 3694, 3698 computable general equilibrium models 3836 conditional cash transfer 3689, 3690, 3697 conditional cash transfer programs 3966, 3967, 3971, 4010, 4020, 4022 conditional demand 3385, 3390, 3391, 3395, 3400, 3426, 3577, 3578, 3581, 3585, 3602 conditional demand for health 3389 conditional demand function for child academic skills 3574 conditional demand function for educational inputs 3575 conditional demand relationship 3582, 3591 conditional health “demand” function 3446 conditional income transfers 3502 conditional independence 3861 conditional transfer 3263, 3501, 3503 conditional transfer program 3258, 3503 conditional wage function 3394 conditionality 3966, 3978, 3979, 4006 conflict 3732, 3758, 3759, 3761–3763 consumer boycotts 3639, 3694, 3695 consumption 3194–3197, 3447 – economies of scale in 3195–3197 consumption smoothing 3379, 3447 contextual factors 3833 control function 3796, 3811, 3824, 3828, 3888 control function estimators 3873, 3876 control function method 3875 convenience samples 3953 Convention 138 on the minimum age of employment 3617, 3618, 3635, 3640, 3692 Convention 182 on the worst forms of child labor 3618, 3636–3638, 3693 Subject Index coordination failures 3664 coresidence 3192 cost 3479, 3481–3483, 3491, 3492, 3496– 3501, 3509, 3515, 3516, 3546, 3547 cost subsidy 3498 cost–benefit estimates 4021 counterfactual analysis 3788, 3805, 3819 credit constraint 3674, 3677, 3679, 3681, 3688, 3699 cross-country trade flows 3664 cross-cutting designs 3928 cross-cutting (or factorial) designs 3930 cross-group externalities 3943 cross-sectional 3603 cross-sectional data 3583, 3585, 3587, 3589, 3590, 3602 cross-sectional estimator 3854, 3856, 3986 cross-sectional matching 3988, 4008 crowding out 3714, 3715, 3720, 3722, 3723, 3728–3730, 3733, 3737, 3748–3752, 3754 data 3788–3794, 3796, 3797, 3799–3801, 3804, 3806, 3807, 3809–3811, 3815–3819, 3822, 3824, 3831, 3834–3836, 3838–3840 data collection 3928, 3932, 3983 daughter’s marriage 3257 daycare 3691 decision-theoretic perspective 3911 delayed enrollment 3567, 3590, 3591, 3595 demand 3574, 3581, 3585, 3602 demand effects 3056 demand for health 3318 demand for the child’s academic skills 3574 demand function for academic skills 3578 demand-side interventions 3966 Demographic and Health Survey (DHS) 3444 departure from perfect randomization 3934 design effect 3833, 3834 deworming 3599, 3600, 3603 diarrhea 3565 difference-in-difference 3815, 3905–3907, 3951 difference-in-difference estimator 3854, 3857, 3860, 3986 difference-in-difference matching 3867, 4009 difference-in-difference matching estimator 3988 differences in skills 3199 diminishing returns 3251 disability adjusted life years 3564 discontinuities 3812, 3828, 3830 I-25 discontinuity designs 3812–3814, 3830 discount rate 3657, 3682, 3683, 3686 distance 3506, 3511, 3519–3521, 3547 distribution of benefits within groups 3129, 3137 domestic violence 3228 domestic work 3617, 3625, 3628, 3631, 3634, 3641, 3645 double difference 3800, 3813, 3815, 3816, 3821–3823, 3834, 3840, 3986 dowry and bride-price 3222–3226 – bargaining power of woman 3225 – dowry and inheritance 3224, 3225 – market clearing explanations of dowry and bride price 3223, 3224 – risk-smoothing 3225, 3226 – strategic behavior 3225 dried blood spots 3416 dropping out 3545 Dutch Winter Famine 3399, 3421, 3443 dynamic 3521, 3524, 3526, 3529 dynamic demand for health 3393 dynamic demand for health functions 3388, 3390 dynamic health production functions 3392 dynamic panel data model 4013 East Asia 3566, 3569 Eastern Europe/Former Soviet Union 3569 economic development 3158, 3162–3165, 3170 economic effects of better health 3364 economies of scale 3195–3197, 3202 economies of scale in consumption 3195 education 3799, 3804, 3810, 3817, 3828, 3832, 3833, 3839 education gaps 3479 education grants 3973 education human capital 3312 education returns expected in an urban center than in a rural area 3495 educational gaps between males and females 3549 educational inputs 3573 educational production 3541 educational production function 3543, 3544 effect of the treatment on the treated 3939 effects on fertility 3288 efficient estimator 3801, 3811 efficient risk pooling 3205 elasticities of girls’ schooling with respect to income and prices 3521 I-26 elasticity of child schooling with respect to household income 3550 embarrassment 4012 emotion 3726, 3727, 3764 emotional 3775 empirical findings 3073 Employment Guarantee Scheme 3797, 3819 ENCASEH 3977, 3983, 3984 ENCEL 3983, 3989 encouragement design 3827, 3917 endogeneity of female headship 3233 endogenous program placement 3584, 3585 enrollment 3480–3485, 3492, 3493, 3497, 3499, 3500, 3502, 3536 enrollment bars 3479 enrollment cost 3498 enrollment gaps that he finds 3548 entry – subentry essential heterogeneity 3825 estimated treatment 3899 estimating the static model 3511 ethnicity 3159, 3160, 3162, 3166–3168, 3170– 3173, 3177, 3178 evaluation design 3979, 3983 evaluation problem 3986 evaluations 3520 ex ante evaluation 3849, 3886–3889 ex post evaluation 3805, 3849 exchange 3715, 3717, 3718, 3722–3724, 3726, 3727, 3730, 3731, 3753 exclusion restrictions 3823, 3824, 3826–3831, 3874 exogeneity of placement 3792, 3806, 3823, 3840 exogenous program placement 3285 experiment 3801–3806, 3813, 3825, 3827, 3832, 3981 experimental design 3967, 4005, 4026 experimental evaluations 4024 extended family 3715–3717, 3719, 3723, 3727, 3751, 3753, 3755, 3758, 3768, 3771 external entrepreneurs 3070 external validity 3797, 3805, 3831–3833 external validity of randomized evaluations 3950 externality 3251 factory 3073 factory capital 3070 factory production 3067 Subject Index Familias en Accion (FA) 4017 family 3189 – definition of 3189 Family Allowance Program (PRAF) 3912 family living arrangements 3260 family size 3673 family transfer relationships 3260 family-wise error 3947 family’s allocation of time 3258 famine 3421, 3423 fecundity 3276 female headship 3232–3235 – endogeneity of headship 3233, 3235 – female headship and child outcomes 3233– 3235 – heterogeneity of female headship 3233 – poverty comparisons 3232, 3233 female headship on child outcomes 3233 female labor supply 3269 females 3490 fertility 3622, 3656, 3676, 4001, 4002, 4006 fertility and family resource allocations 3252 fertility transition 3100–3108 financial development 3678 financial intermediaries 3075 fixed effects 3816, 3819, 3820, 3906, 3951 flexible schooling programs 3690 flypaper effect 3798 food for education 3648, 3698 forecasting program effects 3887 forms of human capital 3342 fostering 3676 free-rider problem 3124, 3128, 3131 frequency of twins 3275 fuelwood 3663 functional forms for health production 3323 fungibility 3798 future poverty 4022 fuzzy design 3882, 3884 gains from household formation 3191 gaps between urban and rural populations 3483 gaps in schooling attainment between men and women and between urban and rural residents 3549 gaps in schooling attainment exist between men and women 3483 gender 3166, 3167, 3172, 3173, 3178, 3623, 3632, 3669, 3675 – task allocation by gender (gender casting) 3199 gender casting 3199 Subject Index gender differences 3602 gender disparities 3569 gender enrollment gaps 3483 general equilibrium effects 3832 General Health Status 3417 generalized residual 3824 generalized residual method 3873 genetic transfers 3532 geographic mismatch 3869 geography of program 3828, 3829 Ghana 3590 Ghana and Ivory Coast 3357 gift exchange 3725, 3773 gold plating programs 3953 governments 3911 grade attainment 3590 grade progression 4008 grade repetition 3595 grade-for-age 3538 gram panchayat 3929 Grameen Bank 3818, 3820 grandchildren 3753, 3764–3766 gross enrollment rate 3567, 3568 group size 3771, 3773, 3774 group size constraints 3773–3775 Guatemalan 3597 Hamilton’s rule 3759–3762, 3771 hand-knitted carpet industry 3662 Hawthorne effects 3951 hazardous forms of child labor 3619, 3637 headcount index 3798, 3808, 3837 health 3378–3380, 3383, 3385, 3387, 3389, 3391, 3392, 3394, 3396, 3399, 3401, 3403, 3410, 3417–3419, 3424–3426, 3428, 3430, 3432, 3435, 3440, 3443, 3444, 3450, 3463 health behaviors 3385 health economics 3309 health economics for low-income countries 3309, 3310 health effects 3290 health human capital 3312 health indicators 3379 health input 3382, 3383, 3388, 3392, 3393, 3399, 3402, 3425, 3426, 3445, 3449 health input prices 3384 health measurement 3417 health outcomes 3379, 3383, 3385, 3425, 3428, 3443 health outputs 3382 health policy 3309 I-27 health production function 3380, 3381, 3383, 3385, 3389, 3401, 3425, 3445 Health production functions and health input demand functions 3315 health shock 3394, 3433, 3448, 3449 height 3382, 3392, 3411, 3418, 3424, 3425, 3427, 3433–3435, 3437–3439, 3457, 3590, 3592 heterogeneity 3791, 3795, 3797, 3812, 3814, 3820–3822, 3834, 3838, 3840 heterogeneity and endogeneity of female headship 3233 heterogeneity in impacts 3825 heterogeneous 3233 higher average returns to schooling for women 3490 HIV/AIDS 3379, 3396, 3397, 3407–3410, 3450, 3452, 3453, 3457, 3458, 3461, 3463, 3566 HIV/AIDS and development 3357, 3365 home production 3968 Honduras 3966, 4016 horizontal impacts 3837 household 3189 – definition of 3189 household formation 3189–3212 – economic model of 3191 – factors limiting 3208–3210 – gains from 3191 household formation, gains from – consumption 3194–3197 – production 3197–3204 – reproduction 3192–3194 household production 3197, 3198, 3613, 3616, 3674, 3675, 3686 household production, consumption and health 3325 household size 3195, 3197, 3202, 3206 – erdogeneity of 3197 household specialization 3634, 3664, 3687 household utility 3067 household work 3617 human capital 3068 human capital formation 3207, 3255 human capital investment 4020 human groups 3771 HYV yields 3077 ICRISAT 3062 identification 3811, 3812, 3814, 3822, 3824, 3828–3830, 3835, 3836, 3839 identification at infinity 3874, 3875 I-28 identification of impacts 3803 identification of social learning 3097–3100, 3106–3108 identification with a group 3726, 3727 identifying causal effects of better health 3340 idle children 3624 IFPRI Pakistan Food Security Survey 3079 ignorable assignment 3792 impact 3504, 3506, 3520, 3549, 3788–3804, 3806–3820, 3822–3840 impact estimator 3814 impact evaluation 3504, 3789, 3790, 3792, 3793, 3799, 3801, 3805, 3831, 3832, 3834, 3837 impact heterogeneity 3825 impact of a government policy 3504 impact of the program 3504 imperfect compliance 3922 implementation issues 3928 implementation partners (governments, NGOs, or private companies) 3911 improving health outcomes 3363 in utero 3423, 3428 in utero health 3425 in utero nutrition 3420 in-kind transfers 3972 in-laws 3759, 3761, 3764 INCAP 3397, 3429, 3431, 3437, 3598 income and health 3333 income and substitution effects 3968 income effect 3267, 3576–3579, 3580, 3969 income elasticity 3497, 3521, 3532, 3534 income pooling hypothesis 4003 income shocks 3502, 3504, 3521, 3527–3529, 3534 index sufficiency 3875 India 3270, 3282, 3597, 3600, 3602, 3624, 3666, 3668, 3669, 3680, 3681, 3797, 3810, 3817, 3829, 3837 Indian 3271, 3797, 3819 Indian censuses 3059 Indian National Social Surveys 3059 Indian Village Level Studies 3061 Indonesia 3345, 3597, 3817, 3966 Indonesia Currency Crisis 3533 Indonesia Family Life Survey (IFLS) 3062, 3444, 3445 Indonesian 3277, 3292 Indonesian financial crisis 3688 Indonesian Socio-economic Survey 3060 Subject Index Indonesian Work and Iron Status Evaluation (WISE) 3398 industrial composition of local labor market 3662 industrial organization of health care 3361 industrialization 3661 industry regulation 3077 inequality 3055, 3057 infant development 4007 infectious disease 3420 inflammations 3420 informal sector 3664 infrastructure 3515–3519 inheritance 3207, 3221 inheritance and bequests 3207 inheritance system 3221, 3222 innate intelligence 3572 instrumental variable (IV) estimation 3585, 3586, 3811, 3823, 3940 instrumental variable (IV) methods 3341 instrumental variables 3267, 3271, 3341, 3819, 3823, 3825, 3828, 3840, 3877, 3878, 3890 insurance 3204–3207 – efficient risk-sharing, tests of 3205, 3206 Intention to Treat Estimate (ITT) 3937 inter vivos transfers 3207 interference 3796 intergenerational effects 3289 intergenerational transfer 3257, 3678 intergenerational transfers for poor and wealthy households 3531 intergenerational transmission of poverty 3550 intergenerational wealth transfers 3529 internal migration 3058 internal rate of return 4021 internal validity 3802, 3831 International Food Policy Research Institute 3912 interrupted time series design 3907 interval matching 3865 intestinal helminths 3599 intestinal parasites 3597 intestinal worms 3598 intra-household allocation 3591, 4002 intra-household bargaining 3970 intra-household distribution of health inputs 3364 intra-household resource allocation 3817 investment 3056 involuntary population policies 3264 Iran 3570 Subject Index iron 3397, 3398, 3441 iron supplementation 3600 Jamaica 3597, 3966 John Henry effects 3951 Kagera Health and Development Survey (KHDS) 3452–3454, 3457, 3458, 3462 Kenya 3357, 3599 Kenya deworming 3601 Kenyan 3277, 3598 kernel matching 3865 kinship networks 3714–3716, 3718, 3758 Korea 3280, 3281 Kuwait 3570 KwaZulu-Natal Income Dynamic Study 3062 labeling campaigns 3639 Labor Force Survey 3060 Latin America 3564, 3566, 3568, 3569, 4010, 4015 leakage 3994 learning-by-doing 3201, 3207 lending 3775 life course 3378–3380, 3386, 3387, 3394, 3396, 3403, 3419 life-cycle consumption-smoothing savings 3252 life-cycle model of savings 3259 life-cycle savings hypothesis 3296 light work 3618, 3638, 3640 liquidity constraints 3678, 3753, 3754, 3775 living arrangements 4010 living arrangements of elderly 3237 Living Standards Measurement Surveys 3062, 3620, 3623 local average treatment effect 3825 local average treatment effect (LATE) 3877, 3879, 3880, 3890, 3939 local instrumental variable (LIV) 3890 local instrumental variables (LIV) estimator 3881 local IV regression methods and the control function approach 3346 local linear matching 3865 local linear regression 3885 low-income countries 3311 luxury axiom 3657, 3682 malaria 3565, 3566 Malaysian 3276, 3570 I-29 male–female schooling gaps 3483 malnutrition 3564 Malthus 3251 Manski–Lee approach 3944 marginal treatment effect (MTE) 3879, 3880 market work 3615, 3626, 3628, 3632, 3634, 3641 Markov schooling transition model 3997 marriage 3212, 3758, 3763–3765, 3768 marriage and bargaining 3226, 3229 – divorce threat point 3226, 3227 – domestic violence 3228 – noncooperative threat point 3227 marriage dissolution 3229–3235 – causes of 3229, 3231 – government policies and 3230, 3231 marriage formation 3212–3229 marriage market 3212 – assortative matching 3212–3217 – marriage squeeze 3215 – parental involvement in 3220–3222 – polygyny and polyandry 3217–3220 marriage squeeze 3215, 3223 mass media campaigns 3690 matching 3981, 3987, 3991, 4006, 4012 matching estimators 3876 mate guarding 3763, 3764 Matlab 3288 Matlab, Bangladesh 3286 Matlab Health and Socio-Economic Survey 3079, 3440 maximum benefit 3978 measles 3565, 3566 measurement 3383, 3450, 3452, 3535 measurement error 3418, 3427, 3434, 3584, 3585, 3587, 3593, 3594 measurement of health 3334 meta-analysis framework 3909 method of matching 3861 Mexican anti-poverty program 3966 Mexican Family Life Survey 4003, 4010 Mexican government 3973 Mexico 3353, 3689, 3694, 3697, 3799 Mexico’s Progresa 3800, 3802, 3804 MHSS Survey 3062 microcredit 3663, 3672, 3690 Middle East 3566 migrants 3668, 3680, 3689 migration 3071, 3257, 4000, 4001, 4010, 4023 migration rates 3058 I-30 minimum age of employment 3617, 3618, 3655, 3692 minimum mandatory attendance 3970 miscarriages 3278 misreporting 4012 missing children 3622, 3623 missing data problem 3850 mixed motives 3729–3731, 3749 modern-influenced activities 3055 moral hazard 3621, 3671 Morocco 3570 mortality 3403, 3408, 3411, 3419, 3421, 3422, 3424, 3428, 3443, 3445, 3446 mortality selection 3456, 3458, 3462 mother’s health 3288 mother’s market labor supply 3295 mother’s supply of time to the labor market 3252 Multiple Indicator Cluster Survey (MICS) 3620, 3625, 3641 mutual insurance 3724, 3755, 3772–3774 Nash bargaining 3728, 3729 Nash bargaining solution 3971 National Household Sample Survey 3060 national identity cards 3680 natural experiments 3940 NCAER Rural Economic Development Survey 3064 nearest-neighbor matching 3864 Nepal 3623, 3637, 3667 net enrollment 3568 net enrollment rates 3567 Nicaragua 3966, 4015 Nigerian 3293 Nimble fingers 3662, 3666 non-communicable diseases 3410 non-cooperation within the household 3227 non-cooperative 3227 non-experimental 3840 non-experimental estimates 3906 non-experimental estimators 4005, 4007 non-farm employment 3055 non-farm production 3054 non-farm products 3055 non-kin 3759, 3769–3771, 3776 non-parametric 3944 non-parametric matching 3904 non-random 3295 non-traded 3056, 3067 Subject Index norms 3719 Middle East and North Africa 3568, 3569 NSS 3075, 3076 nutrition 3419, 3421, 3430, 3440, 3490, 3492, 3513, 3514, 3520, 3539, 3540 nutritional spillovers 3671 nutritional supplements 3975, 4007, 4014 observational studies 3796 old age support 3204 omitted variable 3905 omitted variable bias 3583–3585, 3587, 3602, 3811 openness 3664 Oportunidades 3871 opportunity cost 3481, 3490, 3491, 3496, 3497, 3499, 3503, 3508, 3511, 3512, 3520, 3523, 3524, 3526, 3548 orphan 3236, 3453–3455 out-migration 3057 out-migration rates 3991 oversubscription designs 3939 Pakistan 3592 panel 3595 panel data 3061, 3583, 3586, 3587, 3589, 3592, 3593, 3596, 3602, 3603, 3800, 3801, 3816, 3818, 3819, 3837 parental agency 3666 parental altruism 3656, 3657, 3666, 3669, 3677, 3678 parental callousness 3666, 3669 parental death 3673 partial (or imperfect) compliance 3935 participation 3173–3179 peer effect 3675 performance of matching estimators 3869 permanent and transitory income shocks 3528 permanent and transitory shocks 3527 personal distribution of welfare within families 3262 pertussis 3566 PETI 3697 phase-in programs 3915 Philippines 3593, 3595, 3596, 3689 physical development 4007 physical functioning 3403 pilot programs 3911, 3913, 3914, 3953 pilot projects 3899, 3911 piped water 3810 pipeline comparisons 3813, 3814 Subject Index political competition game 3123 politician’s identity 3159, 3160, 3172–3177 polygamy 3676 polygyny and polyandry 3217 population heterogeneity 3295 population program effects 3283 positive substitution effect 3266 potential outcome 3849, 3898, 3900 poverty 3308, 3358, 3789, 3790, 3793, 3798– 3800, 3802, 3804, 3808–3811, 3819, 3828–3831, 3835–3837, 3839, 3967, 3995, 4020 poverty alleviation 3994 poverty and child labor 3613, 3648, 3666, 3683, 3684 poverty impact 3798, 3808, 3809, 3829, 3837 poverty line 3795, 3798, 3799, 3808, 3809, 3837, 3838 poverty trap 3655, 3656 power of the design 3899, 3918 practical design choices 3899 preferences for public goods 3121, 3127, 3135, 3136 preschool 3600 Preston Curve 3406 price effect 3576–3579 price elasticity 3497, 3498, 3519 price of schooling 3546 Primary School Deworming Project 3916 private returns 3490, 3549 private returns to schooling favoring women 3490 production 3197–3204 – household production 3197 production function 3581, 3593, 3400 production function for academic skills 3572, 3577, 3602 production function for child health 3573 production of the mother 3266 Proempleo 3827, 3832, 3835, 3836 program dependency 4024 program placement 3504 Programa de Asignacion Familiar (PRAF) 4016 Progresa 3502, 3520, 3524, 3525, 3689, 3697, 3799, 3804, 3811–3814, 3838, 3839, 3907, 3912, 3913, 3916, 3921, 3930, 3931, 3954, 3955, 3966, 3973 Progresa data 3839 progressive era 3611, 3669 promotion 3545 I-31 propensity score 3793, 3794, 3800, 3805– 3811, 3823, 3825, 3840, 3863 propensity score matching 4010, 4014 propensity score matching estimators 3989 property rights 3264 proxy-means test 3794, 3812 public goods 3158, 3166–3172, 3177 public goods experiments 3142, 3149 public transfers 3720, 3723, 3748, 3751, 3752, 3755, 3756 publication bias 3831, 3832, 3899, 3908–3910, 3947 pupil–teacher ratio 3681 quality of education 3569 quality of local schools 3508, 3526 quality of public goods 3121, 3134, 3150 quality of schooling 3483, 3490 quality of those children 3295 quantity–quality trade-off 3274 quasi-experimental evaluation 3792 quid pro quo 3718, 3719, 3723–3725 RAND Health Insurance Experiment (HIE) 3397, 3417, 3440 random coefficient model 3855 randomization 3896, 3898, 3899, 3901, 3980 randomization bias 3803 randomized design 3979, 3986 randomized evaluation 3583, 3587, 3588, 3597–3603, 3795, 3803, 3804, 3811, 3836, 3839, 3898, 3899, 3901–3904, 3906, 3907–3909, 3910, 3912, 3913, 3918, 3928, 3931, 3932, 3934, 3938, 3940, 3943, 3945, 3950–3954, 4006 randomized experimental studies 3345 randomized experiments 4025 randomized trial 3589, 3793, 3797, 3802, 3804, 3832, 3833 reciprocal altruism 3769 reduced-form equation 3269 reference for researchers 3898 reflexive comparison 3816 reforms 3793, 3802, 3804, 3819, 3833 regression estimators 3854 regression framework 3904 regression-discontinuity 3881–3884, 3905, 3951 relationship between nutrition and productivity 3339 remittances 3079, 3729, 3730, 3738, 3748, 3753 I-32 repetition 3505, 3545, 3567 replicability of results 3955 residential status of the elderly 3237 respiratory infections 3565, 3566 returns 3479 returns across urban and rural markets 3493 returns are equal or higher in rural than in urban areas 3494 returns for males 3490 returns for men and women 3490 returns from jobs in nearby urban areas 3494 returns from rural to urban areas 3495 returns higher for women 3490 returns off-farm than on-farm 3509 returns to education 3613, 3624, 3677, 3679, 3683, 3695, 3699 returns to human capital 3507, 3530, 3545 returns to rural education 3550 returns to schooling 3482, 3490, 3491, 3493– 3497, 3499, 3507, 3515–3519, 3545 rice 3631, 3665, 3680, 3688, 3698 risk-sharing 3204, 3205, 3714–3717, 3725, 3730, 3732, 3733, 3754–3757, 3759, 3769, 3771–3775 risk-smoothing 3225 Rosenbaum and Rubin (1983) theorem 3863 rugmark 3639, 3696 rural and urban markets 3493 Rural Economic Development Survey (REDS) 3061, 3062, 3076, 3077 rural roads 3798, 3819 rural wages 3056 same sex substitution 3672 sample attrition 3061, 3587 sample surveys 3799 saving 3207 saving, investment and capital accumulation 3207 savings over the life-cycle 3266 school 3795, 3797, 3799, 3804, 3811, 3817, 3818, 3827, 3828, 3830, 3839 school building project 3515 school costs 3670 school enrollment 3997 school outcomes 3541 school participation 3600 school prices 3521 school quality 3481, 3482, 3515, 3521, 3545, 3656, 3681, 3690, 4023 school subsidy 3888, 3889, 3969 Subject Index school supply 3515 schooling 3257, 3799, 3804, 3817, 3827, 3828, 3830, 3832, 3839, 4006 schooling attainment 3065, 3646, 3681, 3689 schooling costs 3612, 3624, 3666, 3677, 3681, 3682, 3690, 3697 schooling gaps 3479, 3496 schooling gaps between boys and girls 3481 schooling grants 4009 schooling length years of schooling 3481 schooling returns 3490 schools 3797, 3810, 3817, 3818 schools are of lower quality 3509 screening 3972, 3977 selection bias 3791–3793, 3795, 3796, 3800, 3801, 3805–3807, 3809, 3811, 3812, 3815, 3820, 3822–3824, 3826, 3840, 3898, 3900, 3903, 3905 selection on observables 3063, 3792, 3803, 3877 selection on unobservables 3873 selectivity 3078 self-screening 3972 self-insurance 3689 self-selection 3900, 3977, 4012 self-targeting 3972 services 3074 sex composition of births 3278, 3279, 3281 sex-typing of tasks 3675 sharp design 3882, 3883 shock 3435, 3438, 3443, 3444, 3448–3450 sibling rivalry 3222, 3675, 3761, 3762 sibling sex composition 3674 single-difference 3792, 3809, 3814–3816, 3818, 3819, 3823, 3830, 3840 single-difference estimators 3814, 3815 size of groups 3128 social 3495, 3496, 3499 social capital 3833 social exchange 3770 social experiments randomly designed 3286 social fund 3789, 3804, 3806, 3814, 3830, 3835 social learning 3087–3112 social norms 3202, 3647, 3656, 3669 social pension 3678 social returns 3549 socio-emotional development 4007 South Africa 3570, 3597, 3678, 3830 South Asia 3564, 3566, 3568, 3569 South Korean 3570 Subject Index special characteristics of health and health care 3312 specialization 3198, 3200–3202, 3774 spillover effects 3797, 3814, 3941, 4004 squatters 3672 stable unit treatment value assumption (SUTVA) 3902, 3942 standard error 3807, 3808, 3816, 3817, 3945 static 3507 Statistical Information and Monitoring Program On Child labor (SIMPOC) 3618, 3620, 3621, 3628, 3635 strategic behavior 3225 strategic considerations 3225 strategically 3225 stratification 3925 structural dynamic 3524 structural equation 3271 structural estimation 3524, 4006 Sub-Saharan Africa 3564, 3566, 3568, 3569 subsidy 3496, 3498, 3500 subsistence production 3054 substitution axiom 3657 substitution effect 3969 supply side interventions 3966 synergies 3973 Taiwan 3270, 3284 take up 4015 Tanzania 3681, 3685, 3689 targeting 3977, 3994, 3995, 4012 tariffs 3666, 3681, 3696 task allocation 3199 – comparative advantage 3199 – gender casting, social norms 3199, 3200, 3202, 3203 – skill differences 3199 tasks 3199 technology 3201, 3202 technology adoption 3087–3112 technology and specialization 3201 test scores 3505, 3511 tests 3505, 3506, 3510, 3511–3514, 3541, 3546 tetanus 3566 Thailand 3270, 3570, 3597 theory-based evaluation 3834, 3835 threat points 3227 time-inconsistent (“hyperbolic”) preferences 3914 toolkit 3896, 3898 top-down interventions 3122, 3145, 3148 I-33 Trade and Development Act 3640, 3696 trade policy 3666, 3687, 3695 training program 3795, 3800, 3803, 3811, 3822, 3828 transactions costs 3203 transfer 3068, 3079, 3498 transfer derivatives 3720, 3721–3724, 3728– 3730, 3731, 3733, 3737, 3748–3750, 3756 transfers from parent to child, inter vivos 3207 travel time 3681 treatment effects 3850, 3401 treatment groups 3901, 3902, 3905, 3906, 3915, 3918–3920, 3928, 3930, 3936–3939, 3941, 3943–3945, 3951, 3952 triple-difference 3792, 3815, 3822 Trivers–Willard hypothesis 3765–3767 Turkey 3570, 3966 twins 3275, 3341 twins as a rationing device 3272 unconditional income transfers 3502 unconditional or conditional transfers 3503 unconditional transfers 3504 unconfounded assignment 3792 undercoverage 3994 unemployment 3624, 3685, 3689 unitary model 3325 unitary model of household 4002 United Kingdom 3279 United States 3292 unobserved ability 3387, 3428 unobserved characteristics 3381 unobserved heterogeneity 3384, 3387, 3389, 3392, 3393, 3395, 3401, 3402, 3426, 3456 unskilled wage 3057 urban and rural 3548 urban evaluation design 4012 urban–rural and male–female schooling gaps 3496 urban–rural enrollment gaps 3492 urban–rural schooling gaps 3492 US fertility 3278 value added processing 3056 value of assets 3289 variability of matching estimators 3871 Vietnam 3623, 3651, 3665, 3685 Village Level Survey 3079 voucher 3498, 3500, 3501, 3504–3507, 3511, 3520, 3531 wage earnings 3289 I-34 wage growth 3072 Wald estimate 3877, 3878, 3890, 3937, 3939 water access 3663 wealth paradox 3687 weight 3411, 3415, 3419, 3424, 3425, 3433, 3439, 3447 weight-for-height 3437, 3444 well-being 3378 within estimators 3859 women’s education 3292 women’s health 3257 work and iron status evaluation (WISE) 3442 work related injury 3638 workfare 3789, 3797, 3805, 3806, 3835–3838 Subject Index working capital 3067 World Bank Living Standards Measurement Surveys 3061 worm infections 3598 worms 3397, 3432 worst forms of child labor 3618, 3637–3639, 3693 years of completed schooling 3488 years of schooling 3481–3483, 3485–3487, 3493, 3497, 3505, 3506, 3515–3519, 3537, 4008 Zimbabwe 3595, 3596 ... 3395 3396 3397 340 3 340 3 340 8 341 1 341 6 341 7 341 8 341 9 342 0 342 8 344 0 344 3 344 7 345 0 345 1 345 3 xxvi Contents of Volume 5.3 Parental death and health of other household members 5 .4 Parental death... Structural estimation of the dynamic model: Mexico’s PROGRESA Program 5.2 Dynamic labor supply equations 345 7 345 8 346 3 346 5 347 5 347 6 347 7 347 8 347 9 348 1 348 3 349 2 349 6 349 7 349 8 349 9 35 04 3507 3507 3511... HANDBOOK OF DEVELOPMENT ECONOMICS VOLUME Edited by T PAUL SCHULTZ Malcolm K Brachman Professor of Economics, Yale University, CT, USA and JOHN STRAUSS Professor of Economics, University of Southern