Template-Type: ReDIF-Article 1.0 Title: Altitude and Distance Relationships with the Multidimensional Poverty Index: The case of Peru Author-Name: Augusto Delgado Author-Workplace-Name: Waseda University, Tokyo, Japan Abstract: This paper studies the potential association between two geographic indicators, distance and altitude, with the Multidimensional Poverty Index (MPI) for 1,874 district in Peru by using the National Census of 2017. We investigate whether higher altitude or longer distance is associated with higher MPI values. For this purpose, we use the distance of each district to three different potential spaces of reference. First, we use the shortest distance to the metropolitan area of Lima; second, the shortest distance to the capitals of coastal departments; third, and finally, the shortest distance to the sea. We obtain three relevant results. First, we find evidence that altitude is statistically significant and positive associated with variation of MPI among districts. Second, the distance with respect to the sea appears to be more relevant to explaining differences in MPI than the distance to the Metropolitan area or coastal departmental capitals. Finally, we find evidence of spatial externalities of MPI across districts which also seem to be stronger than the direct effect of altitude and distance. Classification-JEL: C13; C21; I32; P25; R10 Keywords: Altitude; Distance; Multidimensional Poverty Index Journal: Revista Economia Year: 2023 Issue: 91 Volume: 46 Pages: 1-21 File-URL: https://revistas.pucp.edu.pe/index.php/economia/article/view/27315/25586 File-Format: Application/pdf Handle: RePEc:pcp:pucrev:y:2023:i:91:p:1-21 Template-Type: ReDIF-Article 1.0 Title: Preferential Trade Agreements and Productivity: Evidencefrom Peru Author-Name: Mario D. Tello Author-Workplace-Name: Department of Economics, Pontificia Universidad Católica del Perú Author-Name: Cristina J. Tello-Trillo Author-Workplace-Name: US Census Bureau Abstract: This paper analyzes the impact of reducing output tariffs (i.e., domestic tariffs on import of final goods) and input tariffs (i.e., domestic tariffs on imports of intermediate goods) on total factor productivity growth of Peruvian manufacturing firms. Peru’s annual survey of manufacturing data from 2003–2017 is used to explore the reduction of tariffs during three preferential trade agreements: United States, China, and the European Union. Lower output tariffs could decrease productivity by reducing firm’s market share or could increase productivity by inducing tougher import competition, while cheaper imported inputs can raise productivity via learning, variety, and quality effects. The results show that a decrease in output tariffs decreases Peruvian firms’ productivity growth for non-exporters (i.e., domestic firms producing goods that are also imported)while increasing productivity growth for exporters (i.e., domestic firms producing export goods).In contrast, a reduction in input tariffs increases firm productivity for all firms. Classification-JEL: D24; F13 Keywords: Total Factor Productivity; Free Trade Areas Journal: Revista Economia Year: 2023 Issue: 91 Volume: 46 Pages: 22-38 File-URL: https://revistas.pucp.edu.pe/index.php/economia/article/view/27316/25587 File-Format: Application/pdf Handle: RePEc:pcp:pucrev:y:2023:i:91:p:22-38 Template-Type: ReDIF-Article 1.0 Title: Industrial Policies vs Public Goods under Asymmetric Information Author-Name: Constantino Hevia Author-Workplace-Name: Universidad Torcuato Di Tella Author-Name: Norman V. Loayza Author-Workplace-Name: The World Bank Author-Name: Claudia Meza-Cuadra Author-Workplace-Name: Universitat Pompeu Fabra Abstract: This paper presents an analytical framework that captures the informational problems and trade-offs that policy makers face when choosing between public goods (e.g., infrastructure) and industrial policies (e.g., firm or sector-specific subsidies). The paper first provides a discussion of the literature on industrial policies. It then presents an illustrative model, where the economy consists of a set of firms that vary by productivity and a government that can support firms through gen-eral or targeted expenditures. The paper examines the cases of full and asymmetric information on firm productivity. Working under full information, it describes the first-best allocation of government resources among firms according to their productivity. It then introduces uncertainty by restricting information regarding firm productivity to be private to the firm. The paper develops an optimal contract (which replicates the first-best) consisting of a tax-based mechanism that induces firms to reveal their true productivity. As this requires high government capacity, the paper considers other simpler policies, one of which is the provision of public goods to all firms.The paper concludes that providing public goods is likely to dominate industrial policies undermost scenarios, especially when government capacity is low. Classification-JEL: H2; H4; O1; O2 Keywords: Industrial Policy; Public Goods; Uncertainty; Private Information; Firm Subsidies; Taxes Journal: Revista Economia Year: 2023 Issue: 91 Volume: 46 Pages: 39-52 File-URL: https://revistas.pucp.edu.pe/index.php/economia/article/view/27317/25588 File-Format: Application/pdf Handle: RePEc:pcp:pucrev:y:2023:i:91:p:39-52 Template-Type: ReDIF-Article 1.0 Title: Small Firm Electricity Demand in Las Cruces, New Mexico, USA Author-Name: Thomas M. Fullerton, Jr Author-Workplace-Name: Department of Economics & Finance, University of Texas Author-Name: Daniel J. Pastor Author-Workplace-Name: Department of Economics & Finance, University of Texas Author-Name: Michael Pokojovy Author-Workplace-Name: Department of Mathematical Sciences, University of Texas Author-Name: Andrew T. Yurachek Author-Workplace-Name: Power Marketing Department, El Paso Electric Company Abstract: Research examining small commercial and industrial electricity usage patterns have historically received less attention than residential electricity consumption patterns. This study examines electricity as an input to small firm commercial and industrial (CIS) production in Las Cruces, the second largest metropolitan economy in the state of New Mexico, using annual frequency data from 1978 to 2018. Those data include labor, per capita personal income, price measures for electricity and natural gas, and weather variables. The long-run and short-run elasticities of the data are then estimated using an autoregressive distributed lag model (ARDL). In the long-run, the CIS derived-demand curve is found to be upward sloping, and Las Cruces CIS customers use natural gas as a complementary input. Real per capita income is also found to have a positive impact in the long-run, while weather impacts are found to be ambiguous. In the short-run, theLas Cruces CIS derived-demand curve is downward sloping, CIS customers use natural gas asa substitute factor, and weather extremes are found to be positively correlated with small firm electricity usage. Classification-JEL: R15; Q41; D24 Keywords: Derived Input Demand; Duality Theory; Electricity; Las Cruces Metropolitan Economy Journal: Revista Economia Year: 2023 Issue: 91 Volume: 46 Pages: 53-71 File-URL: https://revistas.pucp.edu.pe/index.php/economia/article/view/27318/25589 File-Format: Application/pdf Handle: RePEc:pcp:pucrev:y:2023:i:91:p:53-71