Machine Learning algorithms, such as the artificial neural networks, are acknowledged to outperform several econometric procedures in predictions. Machine learning becomes popular for doing operations that practically require more efficiency and accuracy, derived basically from the algorithm's...

We propose a simple method to identify the effects of unilateral and non-discriminatory trade policies on bilateral trade within a theoretically-consistent empirical gravity model. Specifically, we argue that structural gravity estimations should be performed with data that include not only...

Financial stability is an important policy objective since crises are associated with big economic, social, and political costs. Promoting stability requires preventing “sudden stops” in capital flows, which are events in which foreign financing abruptly disappears. This paper contributes to...