This study decomposes both the labor productivity gap and the labor productivity growth into the contributions of technical efficiency, capital deepening and technological change for Mexican manufacturing at the regional level. In order to do so, we apply a methodology that combines two...

We analyze empirically the effect of local transfers (public and private ones) on the probability of partisan alternant under two approaches: first alternant and consecutive alternant between two local administrations, this in the context of political clientelism theory and public-good provision...

We develop a methodology to estimate the actual exit time from poverty and the minimum necessary growth rate to eradicate it in a pre-determined period of time without assuming distributionally neutral income growth. We compare the exit time for the average poor (Kanbur, 1987) and the average...

In Mexico, the recent upsurge of the global food prices have affected, more than proportionately, the most margined sectors of the population. According with the present results, it is possible to conclude that, even though poverty is highly sensitive to food prices increase, the substitution...

An inelastic tax system increases the uncertainty associated with tax revenue collection. This results in continuous short-term adjustments to maintain the stability of tax collection. In this paper, we estimate the revenue elasticity of the principal taxes in Mexico, finding a much greater...

In a typical developing country, coverage of the contributory social security system is low. We analyze the aggregate effects of a revenue-neutral fiscal-cum-social policy reform that consists of: 1) the implementation of universal social insurance to replace the system with low coverage; and 2)...

Current data provide macroeconomic information for a large number of countries and for a long period of time (macro panels). This causes that in these panels slope heterogeneity and cross-section dependence (CSD) are a rule rather than the exception, leading to fixed effects slope estimators to...

This paper analyzes the effect of information overload on preference or aversion for variety. According to the model, a rational decision maker who suffers from information overload, faces a two-stage decision process, and is choosing from a set of unknown goods will find it optimal at some...

We construct an index theorem for smooth infinite economies that shows that generically the number of equilibria is odd. As a corollary, this gives a new proof of existence and gives conditions that guarantee global uniqueness of equilibria.

Financial advisors typically recommend that a long-term investor should hold a higher percentage of his wealth in stocks than a short-term investor. However, part of the academic literature disagrees with this advice. We use a spatial dominance test which is suited for comparing alternative...