In this paper we model foreign capital flow to Brazil as stemming from an investment decision that whose risk depends on the expected rate of loss of foreign reserves. This motivates the estimation of an empirical relationship between these two variables that is valid for “normal” periods...

In asymmetric information problems, agents with less information (principals or contractors) usually take as given the preferences of agents with more information (agents or contractees). Moreover, the distribution of characteristics of contractees is supposed to be invariant. In this article we...

Neste artigo admitimos que o fluxo de capital externo para o Brasil subordina-se auma decisão de investimento cujo nível de risco depende da taxa esperada de perda dereservas internacionais. Isso foi motivado pela estimação que fazemos de uma relaçãoempírica entre essas duas variáveis...

In this paper we show that the approximation error of the optimal policy function in the stochastic dynamic programing problem using the policies defined by the Bellman contraction method is lower than a constant (which depends on the modulus of strong concavity of the one-period return...

In this paper I give a method for finding long-run-average policies in the undiscounted economic growth problem using approximations by finite horizons. Required hypothesis is the strong interiority of T-horizon solutions.

We build a model of credit card payments where the retailers are allowed to charge differential prices depending on the instrument of payment chosen by the consumer. We follow the Rochet and Wright (2010) approach, but assuming a credit card system without a no-surcharge rule or any type of...

We build a model of credit card payments where the retailers are allowed to charge differential prices depending on the instrument of payment chosen by the consumer. We follow the approach in Rochet and Wright (2010) but assume a credit card system without any type of non-surcharge rule. In a...