3.13 Tesis magíster
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- ItemDynamics of crime and inequality(2023) Aylwin Trischler, Alberto José; Janiak, Alexandre; Aguirre Rigo-Righi; Pontificia Universidad Católica de Chile. Instituto de EconomíaIn this work, we examine the causal relationship between crime and inequality and explore potential policy options to reduce inequality and crime. To achieve this, we propose a general equilibrium heterogeneous agent model for crime, with incomplete markets, as well as search and matching frictions to characterize the crime dynamics. In it, agents choose to behave as model citizens or engage in opportunistic crime. The model provides an endogenous wealth distribution that turns out to be crucial in all of the agents decisions. Crime can be seen as an outside option for agents in the face of poor lawful economic choices. As a result, increasing security increases income and wealth inequality. Rising income inequality generates an increase in the level of crime, up to the point that inequality is so high that a share of prospective criminals prefer a lower income in exchange of less risk. These findings put inequality as one of the main determinants of crime in a society. Additionally, we assess the impacts of four policy measures on crime and inequality: labor taxation, direct transfers, imprisonment sentence length, and imprisonment consumption level. We compute optimal policy schemes under different assumptions.
- ItemEssays in long-term economic development(2023) Huaroto de la Cruz, César; Gallego Yáñez, Francisco; Pontificia Universidad Católica de Chile. Instituto de EconomíaResearch in Development Economics has been, until the last two decades, ahistorical in its focus. Fortunately, this has changed, and there is increasing interest in understanding the deep roots behind economic development. In this thesis, I aim to contribute to this branch of the literature by studying the consequences of two historical events in long-term economic development in Peru. In the first chapter, we study the persistent effect on social unrest of the Mining Mita— a colonial forced labor and migration institution that affected indigenous communities in Peru between 1573 to 1811. Using a geographical regression discontinuity design for identification, we provide causal evidence that Mita areas have experienced higher levels of social unrest since the end of the 18th century. We present a conceptual rationale with historical and causal evidence indicating that at least part of the roots of such persistence is cultural. Specifically, people living in Mita districts identify more with the indigenous groups and indigenous institutions, are more likely to speak native languages, are less likely to migrate, and have different beliefs about development and democracy. In the second chapter, I study the effect of fighting a foreign invasion via self-organized resistance on nation-building in a developing country during the nineteenth century. I use the case of the Sierra Campaign, the last stage of the Pacific War (1879-1884, between Peru and Chile), where local indigenous communities in Peru fought a guerrilla war against the Chilean army. The experience reduced indigenous ethnic self-identification but increased political participation, democratic values, and civic capital. Finally, it also increased economic development in the long run, suggesting that war can foster development by reducing social fragmentation.