Applied Microeconomics in Costa Rica: From Firm Misallocation to Human Trafficking Prevention
Presented by:
Claudio A. Mora-García
Central Bank of Costa Rica
Thursday, October 22, 2026
4:00 pm-5:00 pm
Taylor-Hibbard Seminar Room (Rm103)
This presentation brings together two different studies that use microeconomic evidence from Costa Rica to examine distinct challenges in economic development: resource misallocation and the prevention of human trafficking. The first study uses administrative firm-level data from 2005 to 2022 to investigate allocative efficiency in the manufacturing sector. Using a structural framework that accounts for firm productivity, markups, and demand conditions, we find that allocative efficiency has improved over time but remains relatively low. Counterfactual estimates suggest that eliminating misallocation could increase manufacturing productivity by 61–89%. The second study evaluates Kichi, a low-cost board game designed to strengthen protective beliefs among girls aged 8–13 in socioeconomically vulnerable communities. Using a randomized experiment, we find that the intervention improves protective attitudes and intended responses to hypothetical risky situations, primarily through increased perceived self-efficacy, response efficacy, and self-worth rather than factual knowledge. Together, these studies illustrate how microeconomic research can identify constraints on development and inform interventions targeting both productive efficiency and individual well-being.