This paper provides a tractable continuous-time constant-absolute-risk averse (CARA)-Gaussian framework to quantitatively explore how the preference for robustness (RB) affects the interest rate, the dynamics of consumption and income, and the welfare costs of model uncertainty in general...

In a dynamic general equilibrium model with credit constraints and heterogeneous firms I show that both tax policies and domestic financial market development (FD) can lead to lower informality. Tax policies are more effective in reducing informality since they directly increase the cost of...

Abstract Medical bankruptcy was at the heart of the health care reform debate. According to Himmelstein et al. (2009), 62.1 percent of bankruptcies in the United States in 2007 were due to medical reasons. At the same time over 15 percent of Americans had no health insurance. The 2010 health...

Unexpectedly, and as a result of a simple exercise of intellectual curiosity, the resolution of the Ramsey growth problem with a Utility function underlying relative preferences for consumption and savings, provides remarkable results and interpretations. An advanced microeconomic analysis of...

Unexpectedly, and as a result of a simple exercise of intellectual curiosity, the resolution of the Ramsey growth problem with a Utility function underlying relative preferences for consumption and savings, happens to provide remarkable results and interpretations. An advanced microeconomic...

Surprisingly, and as a result of intellectual curiosity, the resolution of the Ramsey growth problem with a Utility function describing relative preferences for consumption and savings, happens to provide formidable results. An advanced microeconomic analysis of this particular assumption which...

Despite ‘joy of giving models’ have been extensively examined in the literature, the Ramsey growth model has never been explored under the assumption of a direct preference for bequeathing savings that are reinvested. This assumption implies a Utility function depending on both consumption...

This paper investigates the dimension requirements of informationally decentralized Pareto-satisfactory processes in production economies with increasing returns to scale or more general types of non-convexities. We show that the marginal cost pricing (MCP) mechanism is informationally effcient...

After overcoming various financial crises in the mid-90's and early millennium (Tequila, Asian, Russian, Brazil, Argentina and Ecuador) Latin America found a proper environment conducive to reach sustained growth and macroeconomic stability. Endogenous elements - such as credit growth, the...

As at today, it is an indisputable fact that the climate is changing and there is a scientific consensus that the world is becoming a warmer place principally attributable to human activities. Regrettably, the physical impacts of future climate change on humans and the environment will include...