Mery Ferrando
(Tilburg University)
«Global Income Poverty Measurement with Preference Heterogeneity: Theory and Application» (with Benoit Decerf and Natalie Naïri Quinn)
Abstract:
This paper studies identification in binary response dynamic panel data models with switching state dependence. Departing from the standard approach of modelling binary response dynamic panel data models, where last period’s choice enters as an additional regressor, this paper allows for switching dependence where current period’s decision depends on whether this period’s choice differs from last period’s choice. This form of correlation causes inertia in individual choices and is suitable for modeling cases where individuals face some form of high \switching costs». This contemporaneous effect in choices, where the choice an individual makes in the current period directly affects current period’s latent utility, results in the model being logically inconsistent, making the model both incomplete and incoherent, which might result in lack of point-identification.
Although prosocial behavior is understood as key for development, little is known about the role of prosocial behavior in the presence of conflict between groups and inequality. The effectiveness of prosocial behavior can be enhanced by three channels: ingroup member beliefs that outgroup members are willing and able to integrate, reductions in prejudice or increases in empathy. We implement a lab-in-the-field experiment with a representative sample in the main Colombian regions to measure the benefit of two 5-minute media interventions on prosocial behavior (i.e. altruism, trust, and preferences for redistribution) towards four groups: Venezuelan migrants, former combatants, internally displaced people and the very poor.Unlike other similar edutainment interventions, ours are grounded on social psychology theory and evidence. Thus, the mechanism is not priming but actual information and learning to lower psychosocial barriers (beliefs, prejudice and empathy). We show that exposure to the media interventions humanizes FARC ex-combatants and IDPs, affecting both attitudes (e.g., support for inclusive policies) and prosocial behavior toward both groups. The robust effects of our intervention inform the policy design and thus accelerate the integration of the migrant population into their host communities.