Cover; Half Title; Title Page; Copyright Page; Contents; Executive Summary; Acknowledgments; About the Authors; Abbreviations; Chapter 1: Introduction; Why This Study?; Key Results; Outline of the Report; Notes; References; Chapter 2: Stylized Facts; Overview of Growth in the Region; Patterns of Growth in LAC; Notes; References; Chapter 3: Modeling Economic Growth and Baseline Results; Drivers of Economic Growth; Model of the Drivers of Economic Growth; Baseline Model; Diagnostic Checks; Notes; References; Chapter 4: Role of External Factors; How Did External Factors Affect Growth in LAC? NotesReferences; Chapter 5: Role of Domestic Factors; Inflation and Macroeconomic Volatility; Impact of Stabilization Policies; Impact of Structural Policies; Need for Continued Reform; Notes; References; Chapter 6: Extensions of the Model; Potential Parameter Heterogeneity; Potential Complementarities; Beyond the Short-Run/Long-Run Dichotomy: Alternative Stabilization Measures; Alternative Measures of Infrastructure; Notes; References; Chapter 7: What Might the Future Hold for LAC?; Trends from the Past Decade; Commodity Prices. Benchmarking Exercise on the Effects of Changes in Structural and Stabilization FeaturesStabilization Policy Benchmarking; Structural Policy Benchmarking; Notes; References; Chapter 8: What Do the Findings Mean for the Policy Debate?; Drivers of Growth; Benchmarking; Sound Macro Policy; Governments' Role; Notes; References; Chapter 9: Conclusions; Notes; References; Appendix A: Setup and Estimation Methodology; Robustness Checks; Benchmarking Methodology; Notes; References; Appendix B: Tables and Figures; References; Boxes; 3.1 Interpreting the Regression Parameters. 4.1 How Can a Commodity Boom Drive a Virtuous Cycle of Growth?Figures; 1.1 Growth in LAC, 1985-2013; 1.2 Growth and Incomes of the Poor since 1981; 1.3 Growth and Incomes of the Poor since 2000; 2.1 Growth of Countries in LAC since 2000 Compared with the Previous Period; 2.2 Regional Income Levels Relative to Income in the United States, 1980-2012; 2.3 Growth Rates, 2000-12 (Average Annual Per Capita Growth, Purchasing Power Parity); 2.4 Variation in Growth across LAC; 2.5 Contribution of Expenditure Components to Real GDP Growth in LAC; 2.6 Labor Force Participation Rates in LAC. 2.7 Decomposition of the Income Gap3.1 Effects of Policies on Economic Growth in LAC; 3.2 Economic Growth Regressions; 3.3 Actual and Predicted Change in log GDP per Capita, 2006-10 and 1996-2000; 4.1 LAC Growth and Selected External Conditions; 4.2 Common Economic Growth Headwinds and Tailwinds; B4.1.1 Schematic of the Effects of a Commodity Price Boom; 4.3 Predicted Growth Effect from Persistence, Policies, and External Conditions; 4.4 Net Commodity Exports in LAC; 4.5 Terms of Trade and Governance; 5.1 Inflation across Latin America and the Caribbean over the Decades.