This paper uses panel Granger causality tests to study the relationship between sector-specific foreign direct investment (FDI) and CO₂ emissions. Using a sample of 18 Latin American countries for the period 1980--2007, we find causality running from FDI in pollution-intensive industries (“the...

This paper analyzes the components of housing demand in Mexico in the context of developing and developed nations. The case of Mexico is particularly interesting given that population and income dynamics, as well as current housing shortages, suggest that the demand for housing will...

In this paper we develop a framework to analyze the optimal policy of an inflation-targeting monetary authority that is not fully confident about its model and the degree of mistrust changes over time as the structure of the economy changes. These changes can include structural breaks as well as...