The log-linear specification of wage equations is commonly used in the applied economics literature. Predictions of the retransformed wage are not straightforward as the standard approach (naive estimator) produces biased predictions. Duan (1983) proposes a smearing estimator which overcomes...

Este artículo pretende verificar si el sistema provisional obligatorio de capitalización individual introducido en Chile en 1981 es apropiado para mujeres de bajos ingresos y empleo irregular. Sobre la base de los datos de la encuesta CASEN de 1990, se construyen perfiles de ingreso por edad...

The purpose of this work is to develop a leading indicator for the Imacec, a monthly indicator of the Chilean economic activity. The indicator proposed herein is based on the classical methodology of the NBER, but with one major difference: the use of a Ridge regression to aggregate the series....

There is no doubt regarding the negative effects of air pollution on human health, economic property and the environment. The almost fie million inhabitants living in Santiago, Chile, are exposed to high levels of air contamination, especially during winter time when the level of pollution is at...

A common problem in econometric models and multiple regression in general is multicollinearity, which produces undesirable effects on the Least Squares estimators. A possible solution to this problem is the "Ridge" Regression estimator proposed by Hoerl and Kennard (1970). Ridge Regression has...

In this article we derive the density and distribution functions of the stochastic shrinkage parameters of three well-known operational Ridge Regression estimators by assuming normality. The stochastic behavior of these parameters is likely to affect the properties of the resulting Ridge...

This paper examines the economic status and labour supply of older workers in Chile. It examines the extent to which the labour market is an important source of economic risk diversification for older workers and their households, and the influence of alternative sources: the family, social...

This paper examines retirement behavior and household income for older persons in Chile. It pays close attention to the sources of household income, income inequalities, and the economic vulnerability of older persons. This is important in order to evaluate whether labour market and social...