Template-Type: ReDIF-Article 1.0
Author-Name: Raul V. Fabella
Author-Workplace-Name: UP School of Economics, National Academy of Science and Technology
Title: Comprehensive Agrarian Reform Program (CARP): Time to let go
Abstract: This paper revisits the record of the Comprehensive Agrarian Reform Program (CARP) in the Philippines over its quartercentury existence. By 2014, it shall have accomplished 99 percent of its targetÑan impressive success for a government program. As a program to advance the economic welfare of farmers, however, it has accomplished the opposite of its stated goals. Productivity in coconut and sugar has fallen drastically, and poverty incidence among beneficiaries in agrarian-reform communities is even higher than among farmers in general. CARP and CARPER (Comprehensive Agrarian Reform Program with Reforms) have created a new social class: the landed poor. The design and implementation flaws that brought about this result are explored, including carpÕs suppression of the market for land assets and its rigid five-hectare landownership ceiling, which led to the demise of the legal rural financial market and the flight of private capital. The paper argues for a shift in the policy focus henceforth from equity to efficiency, and the revival of markets for rural output and credit by, among others, lifting landownership limits for productive farmers and publicly registered corporations.
Classification-JEL: Q140, Q150
Keywords:  land reform, equity, land markets, credit markets, Coase theorem
Journal: Philippine Review of Economics
Pages: 1-18
Volume: 51
Issue: 1
Year: 2014
Month: June
File-URL:http://pre.econ.upd.edu.ph/index.php/pre/article/view/900/800
File-Format: Application/pdf
Handle: RePEc:phs:prejrn:v:51:y:2014:i:1:p:1-18

Template-Type: ReDIF-Article 1.0
Author-Name: Toby C. Monsod
Author-Workplace-Name: UP School of Economics
Author-Name: Sharon A. Piza
Author-Workplace-Name: Asian Development Bank
Title: Time to let go of CARP? Not so fast
Abstract: We review the data being used to argue that the PhilippinesÕÊcomprehensive agrarian reform program (CARP) has failedÊin economic terms. We find that important statistics andÊeconometric results from cited references have been eitherÊmisinterpreted or used to make invalid comparisons. A moreÊcareful reading of the data shows that productivity for all fourÊmajor crops under land reform rose more in agrarian reformÊcommunities than elsewhere, poverty incidence declined moreÊin agrarian reform communities than in non-agrarian reformÊcommunities, and being an agrarian reform beneficiary orÊresiding in an agrarian reform community has positive effects onÊper capita income. In short, the case that carp has failed or isÊredistributing poverty was not made.
Classification-JEL: Q150
Keywords: agrarian reform, agricultural productivity
Journal: Philippine Review of Economics
Pages: 19-27
Volume: 51
Issue: 1
Year: 2014
Month: June
File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/901/801
File-Format: Application/pdf
Handle: RePEc:phs:prejrn:v:51:y:2014:i:1:p:19-27

Template-Type: ReDIF-Article 1.0
Author-Name: Florencio B. Abad
Author-Workplace-Name: Department of Budget and Management
Title: On the cusp of budget transformation: the work for an inclusive budget process under the Aquino administration
Abstract: The revelation of massive abuses of Òpork barrelÓ funds hasÊfocused public attention on the budget process and the use of publicÊfunds more generally. This paper locates the source of abuse in theÊcountryÕs weak and extractive political institutions, especially inÊthe wider environment of patronage politics. Machinations usedÊto despoil the Budget in the pastÑthrough Òpork barrelÓ funds,Êreenacted budgets, congressional insertions, and the MalampayaÊtrust fund, among othersÑare described and explained, with someÊdetails of their magnitudes provided. On the other hand, previousÊand ongoing initiatives undertaken by the Aquino administrationÊto reform the budget process are explained. Present and plannedÊreforms emphasize inclusion through transparency and widerÊcitizensÕ participation, as well as through improvements inÊgovernment rules and procedures. Ultimately, the recent scandalsÊare a welcome development that amplifies popular support forÊongoing reforms in the budget process and encourages reformmindedÊsections of government to take even bolder steps.
Classification-JEL: H610, B250
Keywords: budget process, budget reform, Òpork barrelÓ funds, inclusive and extractive institutions
Journal: Philippine Review of Economics
Pages: 28-59
Volume: 51
Issue: 1
Year: 2014
Month: June
File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/902/802
File-Format: Application/pdf
Handle: RePEc:phs:prejrn:v:51:y:2014:i:1:p:28-59

Template-Type: ReDIF-Article 1.0
Author-Name: Benjamin E. Diokno
Author-Workplace-Name: UP School of Economics
Title: Recent Philippine budget reforms:separating the chaff from the grain, the whimsical from the real
Abstract: The budget rules enshrined in the Philippine Constitution areÊfiscally sound. When adhered to they make budget deficitsÊeasier to manage. Many policymakers, however, have chosen toÊignore these rules. On the long list of budget reforms proposedÊin the past quarter-century, two emerge as real game changers:Êthe Fiscal Responsibility Act and the Results-Based MultiyearÊBudget Framework, both of which require legislation. AnÊimportant reform not on the list, however, is the proposal to limitÊthe presidentÕs power to defer, rescind, or reserve expenditure ofÊappropriations authorized by Congress. This is a major challengeÊin a country where the president is strong while Congress is weak.Ê
Classification-JEL: H610
Keywords: budget process, budget reforms
Journal: Philippine Review of Economics
Pages: 60-85
Volume: 51
Issue: 1
Year: 2014
Month: June 
File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/903/803
File-Format: Application/pdf
Handle: RePEc:phs:prejrn:v:51:y:2014:i:1:p:60-85

Template-Type: ReDIF-Article 1.0
Author-Name: Ruperto P. Majuca
Author-Workplace-Name: De La Salle University
Title: Optimal solution to cybercrimes: lessons from law and economics
Abstract: A model is presented wherein cybercrimes are addressedÊthrough a combination of private and public measures. ThisÊcaptures the substitutability of private and public responses andÊdetermines the optimal combination of these approaches. TheÊsocially optimal level of security is achieved by equalizing theÊmarginal-benefit-to-marginal-cost ratios of each of the threeÊalternatives: private security investment, nonrivalrous securityÊinvestment, and law enforcement measures. The interrelatednessÊof Internet risks causes individual firms to underinvest in privateÊand public security goods. The government thus lowers theÊlevel of police enforcement expenditures to induce firms toÊinvest more in individual precautions. In certain conditions,Êcooperation results in socially optimal levels of expenditures inÊprivate and public security goods. The Shapley [1953] value canÊbe used as a criterion for allocating the costs and benefits amongÊthe members of a security cooperative
Classification-JEL: K0
Keywords: law and economics, cybersecurity, interrelated risks, public goods, law enforcement
Journal: Philippine Review of Economics
Pages: 84-116
Volume: 51
Issue: 1
Year: 2014
Month: June
File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/904/804
File-Format: Application/pdf
Handle: RePEc:phs:prejrn:v:51:y:2014:i:1:p:84-116

Template-Type: ReDIF-Article 1.0
Author-Name: Melba V. Tutor
Author-Workplace-Name: UP School of Economics
Title: The impact of the PhilippinesÕ conditional cash transfer program on consumption
Abstract: The Pantawid Pamilyang Pilipino Program provides cash grantsÊto poor households qualified on predetermined investments inÊhuman capital. This study analyses the programÕs impact onÊconsumption using the 2011 Annual Poverty Indicators Survey.ÊAverage treatment effect on the treated (ATT) is estimatedÊthrough propensity score matching methodology. HeterogeneousÊimpacts are examined among the bottom 20 percent of income distribution.The study finds that among the total sample, per capitaÊtotal expenditures is not affected by the program. In terms ofÊmonthly per capita, only carbohydrates and clothing significantlyÊincreased. As expenditure shares, education and clothingÊregistered significant positive impact. No impact is observedÊon health spending, both in per capita terms and as a share ofÊexpenditure. The impact of Pantawid Pamilya on consumption isÊmore pronounced among the poorest-fifth of households.Results show that households have responded to program conditionalities but there is very little room to improveÊconsumption of other basic needs. The recent programÊmodification of increasing education grants to older children andÊextending support up to secondary school completion will helpÊhouseholds sustain induced behavioral changes over time. TheÊstronger impact on the poorest-fifth of households underscoresÊthe need to improve the targeting mechanism to address leakage issues.
Classification-JEL: I38, D12
Keywords: consumption, CCT, impact evaluation, propensity score matching
Journal: Philippine Review of Economics
Pages: 117-161
Volume: 51
Issue: 1
Year: 2014
Month: June
File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/905/805
File-Format: Application/pdf
Handle: RePEc:phs:prejrn:v:51:y:2014:i:1:p:117-161

Template-Type: ReDIF-Article 1.0
Author-Name: Alfredo R. Paloyo
Author-Workplace-Name: University  of Wollongong, Rheinisch-Westfalisches Institut fur Wirtschaftsforschung
Title: When did we begin to spell Òheteros*edasticityÓ correctly?
Abstract: Using digitized texts scanned by Google and subjected to opticalÊcharacter recognition, I show that heteroskedasticity overtookÊheteroscedasticity as the preferred spelling in 2001 and hasÊcontinued to dominate, except for 2005, up to 2008. The latestÊtrends indicate that writers are moving toward the k variant.ÊHowever, for words such as homoskedasticity, heteroskedastic,Êand homoskedastic, the corresponding spellings using c are stillÊoverwhelmingly dominant, albeit slowly shifting.
Classification-JEL: A20, B19, B28
Keywords: culturomics, econometric orthography, Google Books, heteroskedasticity, philology
Journal: Philippine Review of Economics
Pages: 162-178
Volume: 51
Issue: 1
Year: 2014
Month: June
File-URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/906/806
File-Format: Application/pdf
Handle: RePEc:phs:prejrn:v:51:y:2014:i:1:p:162-178