The role of an extra lender in the international markets – such the IMF or another similar institution - has been widely covered in academic discussions and among policy makers. However, there is neither a clear answer nor a consensus about its welfare consequences. On the one hand, it is...

The purpose of this paper is to determine the sources of Chilean growth in the 1960-96 period. Particularly, we seek to quantify the contribution of increased trade on growth. We also estimate potential output for the Chilean economy in the aforementioned period. The main results are that the...

The main goals of the present report are: first, describe the main stylized facts of growth in Latin America and the Caribbean (LAC) countries compared to typical countries in the world over the 1960-2000 period. Second, we attempt to explain the economic growth performance in LAC countries...

Recent models of trade with firm heterogeneity predict that opening to trade reduces the number of firms, increases the average size of firms, and decreases firms’ markups. This paper uses a large dataset for 28 manufacturing industries and 46 countries to test these predictions. The...

Tolerating some volatility in the rate of inflation leads the design of inflation target characteristics—in inflation-targeting economies—to reflect flexibility in four dimensions, namely: the price index that defines the target, the width of the target range, the midpoint of the monetary...

When owners could easily sell a company if it is not performing well enough provide additional incentive to the administration to act in the best interest of the stockholders, since in the merger process the actual administration will lose their job (Jensen and Ruback, 1983; Schranz, 1993). It is...

Using a sticky price model for small open economy this paper compares the consequences of two alternative monetary policies over a set of variables. The baseline case assumes a policy rule for the Central Bank that has inflation forecast and output as a target. The alternative policy is a rule...

This paper presents the methodology of fixed asset investment measurement (i.e., gross fixed capital formation, GFCF) by economic activities for the Chilean economy during the period 2004- 2005, at current and constant prices. Fixed asset investment by economic activities is estimated...

This paper describes the Employment Advertisement Index that, based on information on firms seeking to recruit, provides an insight on unsatisfied demand for labour. The new index uses a different methodology and takes into account some difficulties found in the previously released Vacancy...

This paper presents the methodology of capital stock measurement for the Chilean economy by types of assets and different economic activities, according to the Reference Compilation 2003 of National Accounts System. Capital stocks by types of assets are estimated under the Perpetual Inventory...