This paper shows that a standard Real Business Cycle model driven by productivity shocks can successfully account for the 50 percent decline in cyclical volatility of output and its components, and labor input that has occurred since 1983. The model is successful because the volatility of...

Based on the observed behavior of monetary aggregates and exchange rates, we classify inflation stabilization episodes into two categories: de facto exchange rate-based stabilizations (ERBS) and non-ERBS. Unlike the standard de jure ERBS studied in the literature, de facto ERBS encompass cases...

We enhance a standard RBC model to account for military expenditure and the costs of an internal conflict or war. The model captures the natural trade-off in military expenditure: crowding out of private consumption and investment but less destruction (and, therefore, higher marginal...

This paper applies clustering analysis to the Colombian armed conflict. Indeed, when applied to a FARC terrorist act database, this statistical procedure finds a natural clustering of the diferent FARC units according to the diferent types of terrorist acts they commit and identities the...