There is a well-known debate about the roles of geography versus institutions in explaining the long-term development of countries. These debates have usually been based on cross-country regressions where questions about parameter heterogeneity, unobserved heterogeneity, and endogeneity cannot...

In this thesis I examine the welfare and social consequences associated with one economic shock and two policy interventions in Mexico. I use non-experimental approaches that exploit increased data availability as well as in-depth knowledge of the institutional background and show how germane...