Template-Type: ReDIF-Article 1.0 Author-Name: Joseph J. Capuno Author-Workplace-Name: University of the Philippines School of Economics Author-Name: Carlos Antonio Tan, Jr. Author-Workplace-Name: University of the Philippines School of Economics Author-Name: Xylee Javier Author-Workplace-Name: University of the Philippines School of Economics Title: Water, sanitation, and hygiene for child health: some evidence in support of public intervention in the Philippines Abstract: As in many developing countries, diarrheal diseases remain a top cause of child mortality and morbidity in the Philippines. Partly to address this problem, the government has undertaken programs to expand or promote access to safe water and sanitation facilities, especially among poor households. To assess the possible impact of such interventions on child health, we apply the propensity score matching technique on the pooled data from the last five rounds of the National Demographic and Health Survey. We find that improved water and improved sanitation each reduced the probability of child diarrhea in 1993-2008 by around two percentage points. In 2013, improved water reduced the probability by about 7 percentage points. On the other hand, improved sanitation does not seem to have a statistically significant effect. These results lend support to the government’s programs to widen access to safe water and sanitation facilities as measures to improve child health. Classification-JEL: I12, I18, O53 Keywords: Water and sanitation, child health, Philippines Journal: Philippine Review of Economics Pages: 1-27 Volume: 53 Issue: 2 Year: 2016 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/940/859 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:53:y:2016:i:2:p:1-27 Template-Type: ReDIF-Article 1.0 Author-Name: Raul V. Fabella Author-Workplace-Name: University of the Philippines School of Economics Author-Name: Vigile Marie Fabella Author-Workplace-Name: University of Konstanz (Germany) Title: RE-thinking market failure in the light of the imperfect state Abstract: We propose a formal re-definition of the concept of market failure based on the idea of the imperfect state. In the neoclassical taxonomy, a decentralized regime of exchange is a market failure if its laissez-faire equilibrium solution is welfare-dominated by a technically feasible alternative. If the state is perfect (that is, it is benevolent) and competent (that is, its transactions cost of intervention is zero), then every market failure can be remedied with a welfare gain. On the other hand, if the state is imperfect (that is, either non-benevolent or with non-zero transactions cost of intervention), the state intervention to correct the market failure can be welfare-reducing. Extending the logic behind Williamson’s remediableness criterion and Stiglitz’ constrained Paretoness, we introduce a new taxonomy of failures: the concept “proto-failure” now denotes any failure which laissez-faire interaction cannot remedy with a welfare gain. The label “market failure” now denotes a proto-failure, which the relevant state can correct with a welfare gain. A proto-failure that the relevant state cannot correct with a welfare gain we call “Remediableness Condition efficient”. We use the net welfare metric, which explicitly accounts for transactions cost of intervention as efficiency criterion. The new taxonomy is equivalent to the old if the state is perfect, that is, all proto-failures are market failures. When the state is imperfect, the set of market failures is smaller than the set of proto-failures. A proto-failure is a necessary—but not a sufficient— condition for a welfare-improving government intervention. This paper follows the Williamson counsel to “push the logic of positive transactions cost to completion”. Classification-JEL: D60, D61, D63, D23, D04, H21 Keywords: proto-failure, market failure, transactions cost, imperfect state, welfare economics Journal: Philippine Review of Economics Pages: 28-46 Volume: 53 Issue: 2 Year: 2016 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/941/860 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:53:y:2016:i:2:p:28-46 Template-Type: ReDIF-Article 1.0 Author-Name: Ma. Laarni D. Revilla Author-Workplace-Name: Asian Development Bank Author-Name: Jonna P. Estudillo Author-Workplace-Name: National Graduate Institute for Policy Studies (Japan) Title: An essay on schooling outcomes in the Philippines: the role of households, markets, and institutions Abstract: This essay explores the impacts of household income, markets, and institutions on schooling outcomes of children in high school age in the Philippines. We found that the development of the labor market and the rise in household income have encouraged schooling investment. The implementation of free secondary school act (Republic Act 6655) in 1988 has exerted positive impacts on schooling outcomes by decreasing the direct cost of schooling borne by parents. This finding suggests that government policies that decrease user fees in school tend to encourage parents to send their children to school. Classification-JEL: I22, I25, I28 Keywords: education, income, schooling outcomes, Republic Act 6655 Journal: Philippine Review of Economics Pages: 47-65 Volume: 53 Issue: 2 Year: 2016 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/942/861 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:53:y:2016:i:2:p:47-65 Template-Type: ReDIF-Article 1.0 Author-Name: Majah-Leah V. Ravago Author-Workplace-Name: University of the Philippines School of Economics Author-Name: James Roumasset Author-Workplace-Name: University of Hawaii Author-Name: Karl Jandoc Author-Workplace-Name: University of the Philippines School of Economics Title: Risk management and coping strategies: climate change and agriculture in the Philippines Abstract: We provide an initial framework to guide government priorities among programs seeking to reduce the natural-disaster vulnerability of Philippine farm households. The framework sheds light on the pros and cons of alternative policies to reduce household vulnerability, paying particular attention to the role of discounting. The limited coping tools available to low-income households strengthen the case for preventive polices that reduce the probability or the severity of damages. We argue, however, that the inability of poor households to cope with increased exposure to risks does not necessarily imply that social insurance programs should be expanded. Finally, inasmuch as disaster risk management policies at the national level typically lack coherent foundations, we suggest how the farm level risk management framework might be expanded to the national level. Classification-JEL: Q120, Q54, D81, I38 Keywords: growth, Farm household risk management, natural disasters, shock, coping Journal: Philippine Review of Economics Pages: 66-104 Volume: 53 Issue: 2 Year: 2016 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/943/862 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:53:y:2016:i:2:p:66-104 Template-Type: ReDIF-Article 1.0 Author-Name: Florian A. Alburo Author-Workplace-Name: University of the Philippines School of Economics Title: Economic and political dynamics in Philippine development Abstract: This paper hypothesizes that the long-term political behavior of breaking the country into finer geographical and political entities has been inimical to its sustainable long-term economic growth. The splitting of provinces and creation of new ones, legislating of more congressional districts, and further breaking up of even the lowest government levels fragment markets, raise real financial and transactions costs, bloat government’s budgets and the bureaucracy, and burden the private sector. Partial evidence is explored showing this behavior in the country’s long-term development history and some policy directions are suggested. Classification-JEL: O11, O15, O43, J68 Keywords: Philippine development, dynamics Journal: Philippine Review of Economics Pages: 105-118 Volume: 53 Issue: 2 Year: 2016 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/944/863 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:53:y:2016:i:2:p:105-118 Template-Type: ReDIF-Article 1.0 Author-Name: Katsumi Nozawa Author-Workplace-Name: Institute for Asian Studies, Asia University (Japan) Title: Banana production and cooperatives in the Philippines: a structure for self-reliance of farmer growers under agrarian reform Abstract: Based on a field survey conducted by the author, this study inquires into the role of cooperatives in promoting self-reliance among banana farmers in the Philippines. It shows how land distribution under the Comprehensive Agrarian Reform Program (carp) and the participation of agrarian reform beneficiaries (arbs) in cooperatives can, in fact, give farmers a chance to become self-reliant. It describes the operational changes made in a banana plantation affected by land reform from the viewpoint of the cooperative’s management, as well as highlights the cooperative’s role as a community that nurtures essential social norms among the members. Classification-JEL: Q13, Q15, N55 Keywords: agrarian reform, banana plantation agriculture, agribusiness, cooperatives, contract growing, leasing, agribusiness venture arrangements Journal: Philippine Review of Economics Pages: 119-146 Volume: 53 Issue: 2 Year: 2016 Month: December File-URL: https://pre.econ.upd.edu.ph/index.php/pre/article/view/945/864 File-Format: Application/pdf Handle: RePEc:phs:prejrn:v:53:y:2016:i:2:p:119-146