Recently, Sachs et al. (2004) have argued in favor of a massive increase in foreign aid to Africa in order to escape from a poverty trap. They propose to increase the capital stock in one step, through a large, well-targeted infusion of foreign assistance. In this article we show that foreign...

This paper uses nationally representative survey data from Mexico to compare households with savings accounts in formal financial institutions to their neighbors who do not have such accounts. The survey, which was conducted in 2005, contains information on nearly 5,000 households. The findings...

The World Health Organization estimates that 300 million clinical cases of malaria occur annually and also observed that during the 80's and part of the 90's its incidence increased noticably. There are basically two factors behind the incidence of malaria: 'geographical destiny' and...