The empirical evidence presented in this paper casts doubts on the by now widely accepted "fact"that the exchange rate based stabilization programs are expansionary. Even though these programs were associated with output booms, no evidence of booms caused both by the stabilization programs is...

Changes in the parameters of an n-dimensional system of equations induce changes in its solutions. For a class of such systems, we determine the qualitative change in solutions given certain qualitative changes in parameters. Our methods and results are elementary yet useful. They highlight the...

This paper formalizes the relation between comparative statics and the out-of-equilibrium explanation for how a system evolves after a change in parameters. The paper has two main results. First, an increase in an exogenous parameter sets o learning dynamics that involve larger values of the...

The empirical evidence presented in this paper casts serious doubts on the by now widely accepted "stylized facts" of the exchange rate based stabilization programs (ERBS) as they are stated in Kiguel and Liviatan (1992) and in Végh (1992). Even though the ERBS programs were associated with...

I characterize games for which there is an order on strategies such that the game has strategic complementarities. I prove that, with some qualications, games with a unique equilibrium have complementarities if and only if Cournot best-response dynamics has no cycles; and that all games with...

We study the behavioral denition of complementary goods: if the price of one good increases, demand for a complementary good must decrease. We obtain its full implications for observable demand behavior (its testable implications), and for the consumer's underlying preferences. We characterize...

I prove the subgame-perfect equivalent of the basic result for Nash equilibria in normal-form games of strategic complements: the set of subgame-perfect equilibria is a non-empty, complete lattice. For this purpose I introduce a device that allows the study of the set of subgame-perfect...

The activity rate of mature men has increased in Uruguay in recent decades. This trend is remarkably different from what has been observed in most developed and Latin American countries. We analyze in this paper the incentives to retire implicit in the main social security program of Uruguay. We...

Several studies estimate TFP for the Uruguayan economy at an aggregate level (Bucacos,2000; Blyde et al, 2004; Fossati et al, 2005; De Brum, 2004). Though they use generally similar estimation methodologies they find contradictory evidence. In this paper we discuss possible explanations to these...

International tendencies in Foreign Direct Investment (FDI) show that transnationalization process increased quickly in the last years. Uruguay showed in the nineties a good capacity of attract FDI. However, since the economic recovery after the 2002 crisis, the country saw huge amounts of FDI....