This paper provides evidence on the importance of distinguishing among episodes of capital flow reversals driven by stop or reversal of gross capital inflows (sudden stops) and those explained by large surges in gross capital outflows (sudden flights). Besides finding that they have different...

This paper addresses three policy questions related to the episodes of real exchange rate (RER) appreciation in the aftermath of the 2008-09 global financial crisis. First, we determine the extent to which recent movements in RER, in several countries, are driven by changes in RER determinants...

In a general equilibrium context, we analyze the impact of changes in institutional labor market conditions, such as access to financing and efficiency, on the composition of employment and unemployment, considering the nature of formal labor contracts and the entrepreneurial capacity of the...

This paper studies the informational content of synthetic indicators of economic activity for projecting the monthly index of economic activity (Imacec) for Chile. Comparing them to the Urrutia-Sánchez (2008) model, which employs energy production, and calendar and seasonal components to...

Industry level data shows striking differences among sectors in ratios of exports to FDI sales. We determine what is needed to endogenously generate this pattern of export and FDI sales. By calibrating a model of monopolistic competitive firms, we find that tradability of goods is not enough to...

Under competitive labor markets, workers should be paid according to their productivity, regardless ofother personal characteristics. This, however, is not the case and has been widely reported in the literature. This paper reviews empirical evidence and methods of estimation for sectoral wage...

With the objective of evaluating the impact of oil price shocks on the Chilean economy, this paper applies the sign restriction methodology to impulse-response functions in order to distinguish the effects of different types of shocks, namely supply, demand, or oil-specific demand. It also...

Why did services become the dominant sector in industrialized economies? While abundant literature exists on the transition from agriculture to industry (i.e., the industrial revolution), there is no consensual explanation for the second wave of structural change. I argue that sectoral...

This paper analyzes the emerging economies sovereign spread, with emphasis on the impact of commodity prices. Using a panel data model, it tests the heterogeneity of this relationship, depending on the degree of exports concentration and distinguishes the impact of global activity on sovereign...

The impact on oil prices of geopolitical tensions and oil supply-side events is examined. Using a GARCH model on daily oil price data, we find that, when these events actually occur -10% frequency- the geopolitical events explain around 3/4 of daily oil returns forecasted by the model, and oil...