The global financial crisis highlighted that the financial system can be most vulnerable when it seems most stable. This paper models non-linear dynamics in banking. Small shocks can lead from an equilibrium with few bank defaults straight to a full freeze. The mechanism is based on...

We analyze the new selection of teachers in basic and media education in Antioquia as an adverse selection problem. We have known the non-teaching professionals are going relatively well in the written tests, but lose that advantage in the analysis of their curriculum vitae (they usually do not...

We study the interations between leverage, employment structure and compensation policies within firms. Recent works have shown that there exists heterogeneity in compensation policies across firms (Abowd, Kramarz and Margolis, 1999 and Margolis, 1996). We introduce firms' capital structure in...

This paper examines the occurrence of upward distorsions on working-hours caused by the existence of multiplicative effects in the production process. Multiplicative effects are mainly associated with managerial positions but, more generally, with jobs involving multiple tasks or affecting the...

This paper examines the occurrence of upward distorsions on working-hours caused by the existence of multiplicative effects in the production process. Multiplicative effects are mainly associated with managerial positions but, more generally, with jobs involving multiple tasks or affecting the...

How to entrench hard-won gains, increase resilience to shocks, and improve growth performance to reduce poverty? As Central America moves forward in regaining macroeconomic stability, these are the challenges. This study analyzes Central America’s real, fiscal, monetary, and financial...