This paper proposes a specific mechanism to explain differences in political institutions based on the asymmetric and uncertain costs of civil conflicts. Asymmetry implies that the net benefit of fighting an insurgency is not shared equally by members of the elite. But uncertainty implies that...

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...

Globalization, which involves progressive integration of countries’ economies, has resulted in an increasing number of people moving from one country to another, without losing their ties to their original home economies. Increasingly, immigrants are sending money to their home countries...

This document presents the methodology and results of project “National Accounts by Institutional Sectors” (NA-IS) at quarterly frequency, launched in 2008 and developed within the framework of the Systems of National Accounts and as part of an action plan for closing statistics gaps...

Globalization, which involves progressive integration of countries’ economies, has resulted in an increasing number of people moving from one country to another, without losing their ties to their original home economies. Increasingly, immigrants are sending money to their home countries...

This paper presents a comparative analysis of the Chilean foreign exchange market in an international context from 2001 to 2010, in respect of three blocks of economies: advanced, emerging and Latin American. Aspects of deepness, liquidity and the international financial integration level are...

This paper presents the methodology to estimate foreign direct investment (FDI) statistics by type of economic activity and country. The Central Bank of Chile compiles and prepares FDI statistics under the Balance of Payments and International Investment Position´s Framework (International...

This paper studies the interaction between the business cycle and the credit market. A first result is that the business cycle has procyclical effects on different types of credit (i.e., consumer, commercial and mortgage loans). The results area obtained through the identification of structural...

We introduce limited commitment into a standard optimal fiscal policy model in small open economies. We consider the problem of a benevolent government that signs a risk-sharing contract with the rest of the world, and that has to choose optimally distortionary taxes on labor income, domestic...

This paper studies the effects of contracting institutions on economic development. A growth model is presented with endogenous incomplete markets, where financial frictions generated by the imperfect enforcement of contracts depend on the future growth of the economy, which determines the costs...