This chapter surveys the recent literature on the theory of macroeconomic policy. We study the effect of various incentive constraints on the policy making process, such as lack of credibility, political opportunism, political ideology, and divided government. The survey is organized in three...

Using the 2003 and 2008 Quality of Life Surveys, we identify the factors that affect housing tenure decisions in Colombia and explore the determinants of the demand for rentals and purchases. Variables affecting the choice between buying and renting include civil status, education, age of the...

Accommodative monetary policy during the financial crisis was instrumental in preventing a deeper recession. Views differ, however, on how long such measures should be kept in place. At the heart of this debate is the notion that a protracted period of policy accommodation could create...

This paper investigates the transmission channel of macroprudential instruments in a closed economy DSGE model with a rich set of financial frictions. Banks' decisions on risky retail loan concessions are based on borrowers' capacity to settle their debt with labor income. We also introduce...

We provide an introduction to optimal fiscal and monetary policy using the primal approach to optimal taxation. We use this approach to address how fiscal and monetary policy should be set over the long run and over the business cycle. We find four substantive lessons for policymaking: Capital...

En este trabajo se presentan la metodología y los resultados de la evaluación de impacto del programa Jóvenes Rurales Emprendedores del Sena (JRE). Una vez aplicada la metodología Propensity Score Matching (PSM), diferencias en diferencias y la combinación de ambas, se encontró que...

Abstract. Este documento presenta la evaluación de dos programas ejecutados por el SENA - Formación Técnica y Tecnológica (FTyT) y Formación Especializada del Recurso Humano Vinculado a las Empresas (FE). En el caso de FTyT se emplea un enfoque cuantitativo mientras que en el caso de FE se...

Public education is one of the largest components of the public sector in Colombia, in term of its size, share of public expenditures, and geographic coverage. In 1997, Colombia had 85 thousand educational establishments, 390 thousand teachers, and 8.6 million students. In addition, public...

This paper explores the relationship between macroeconomic conditions and urban income distribution in Colombia. The results show that unemployment and inflation have significant regressive effects. Manufacturing output growth is clearly progressive, as well as improved conditions in the rural...