Costa Rica stands out for being among the most politically stable, progressive, prosperous, and environmentally conscious nations in the Latin America and the Caribbean region. Its development model has brought important economic, social, and environmental dividends, with sustained growth,...

Since the end of the Civil War in 1992, El Salvador has advanced on both the social and political fronts. Despite this progress and the recent reductions in income inequality, poverty remains high, largely as a result of low economic growth. This Systematic Country Diagnostic argues that the...

Panama has made significant progress in reducing poverty in recent years, progress that compares positively to that of the rest of the Latin America and Caribbean region. This report takes stock of this progress and reflects on the constraints and opportunities that Panama faces in continuing on...

Peace came accompanied not only by the end to the human drama associated with the conflicts, but also by a significant economic dividend, a much needed development in a region where per capita gross domestic product (GDP) had stagnated between 1970 and 1990 and where two countries (El Salvador...

Honduras is Central America’s second-largest country with a population of more than 8 million and a land area of about 112,000 square kilometers. The 20th century witnessed a profound economic transformation and modernization in Honduras. Honduras’ persistent poverty is the result of...

A stochastic general equilibrium model of the world economy is used to analyze the origin of international business cycles using data for Germany, Japan and the United States. The findings indicate that after 1973, common shocks play a major role in accounting for similarities in output...

Latin America is together with Sub-Saharan Africa the most unequal region of the world. This paper documents recent inequality trends in the Latin American region, going beyond traditional measures of income inequality. The paper also reviews some of the explanations that have been put forward...

This paper explores the impact of remittances on poverty, education, and health in 11 Latin American countries using nationally representative household surveys and making an explicit attempt to account for one of the inherent costs associated with migration-the potential income that the migrant...

Using a large cross-country income distribution dataset spanning close to 800 country-year observations from industrial and developing countries, the authors show that the size distribution of per capita income is well approximated empirically by a lognormal density. The 0 hypothesis that per...