Based on growing theoretical literature, we present evidence from Mexico regarding the weak effectiveness of federal transfers and low absorption capacity of states and municipalities in poor countries in the presence of corruption and opportunistic behavior. We show that the distribution of...

Although there exist the conditions and reasons to let Pemex become a trully state owned, commercialy oriented, oil company, in reality Pemex does not behave as such, due to the limitations posed by its legal framework. Such legal framework poses severe limitations to Pemex’s capacity in...

Although there exist the conditions and reasons to let Pemex become a trully state owned, commercialy oriented, oil company, in reality Pemex does not behave as such, due to the limitations posed by its legal framework. Such legal framework poses severe limitations to Pemex’s capacity in...

This paper develops a model of evolution of beliefs through communication in an exogenous social network. We assume that the agents are Bayesian updaters and that the network enables them to listen to the opinion of others about some uncertain parameter of interest. We explore the effects of the...

This paper studies the evolution of beliefs of a group of Bayesian updaters who are connected through a social network that enables them to listen to the opinions of others. Each agent observes a sequence of private signals about the value of an unknown parameter. In addition, the agent receives...

We analyze a situation where a Principal does not necessarily have all the bargaining power while negotiating a contract with an Agent by studying a dynamic multi-objective moral hazard model with hidden action. We .nd that the structure of the optimal contracts change along the Pareto Frontier,...

We use data from a Maryland farm survey and a multivariate switching regression model with endogenous switching to investigate the effects of information asymmetries on conservation cost sharing contracts. Our estimations indicate that the role that asymmetries of information play in the impact...

This paper develops a model of costly information acquisition by agents who are connected through a network. For a exogenously given network, each agent decides first on information acquisition from his neighbors and then, after processing the information acquired, takes an action. Each agent is...

We consider a class of two-player quadratic games under incomplete information to study the relation between exogenous coordination motives and strategic interactions in information acquisition. The players make decisions in two stages. They decide about information acquisition in the first...

This paper investigates empirically the relationship between inflation, inflation volatility and output growth in the case of México using monthly data over the period 1993-2011. Specifically a bivariate GARCH-M model is estimated to test the hypotheses that inflation rates are directly related...