Under some conditions, macroeconomic crises can have a positive effect on the accumulation of human capital because they reduce the opportunity cost of schooling. This has profound implications for the design of appropriate social protection policies. The impact of macroeconomic crises on...

A revised version was published as The Allocation and Impact of Social Funds: Spending on School Infrastructure in Peru (with Christina Paxson). World Bank Economic Review 16 (2): 297-319, 2002. - Education projects of the Peruvian Social Fund (FONCODES) have reached poor districts and, to the...

A revised version was published as The Political Economy of Expenditures by the Peruvian Social Fund (FONCODES), 1991-95. American Political Science Review 94 (2, June): 289-304, 2000. - As the literature on political influences on the allocation of discretionary funds predicts, spending by the...