Se estudia la tasa interna de rendimiento de las rentas vitalicias en Chile (definida como la tasa de interés que iguala el valor presente de las pensiones esperadas con la prima pagada por los pensionados), asociándola a la competencia en la industria. Se documenta que: las compañías de...

This article studies optimal portfolio decisions with (long-term) liabilities for small open economy based investors, including the optimality of currency hedging (Walker (2008a). Chile is the home country of the representative investor, but results are likely to hold more generally. The problem...

This article presents stylized facts regarding the behavior of the level and structure of interest rates in Chile. Some of the conclusions may be of general interest since:1) “Real” (CPI- indexed) interest rates are considered, which allows to analyze factors other than the expected...

This article provides a stylized framework to assess alternative institutional designs for investment regulation, in the context of mandatory defined contribution pension fund systems with individual accounts and competition among managers. We illustrate short-term, long-term and competitive...

The Chilean evidence indicates the possibility of predicting future aggregate stock returns.Compared with naive prediction strategies, it is possible to predict returns with significantly more, success, using lagged dividend yields and lagged interest. Results are partly interpreted as evidence...