This paper summarizes the main results from the latest household panel survey (Social Protection Survey 2004/05 about the distribution of assets, debt and income across Chilean households. Several appealing conclusions can be drawn. First of all, it is worth stressing that a relatively small...

The fact that minimum wages seem especially binding for young workers has led some countries to adopt age-differentiated minimum wages. We develop a dynamic competitive two-sector labor market model where workers with heterogeneous initial skills gain productivity through experience. We compare...

Traditional cash-in-advance models are characterized by having a constant velocity of money. Based on the Lucas and Stokey (1987) model, this paper studies the behavior of velocity and money demand for the U.S., simulating an economy which includes stochastic monetary growth (monetary policy),...

In this paper we investigate the possible presence of nonlinear dynamics for stock index returns and trading volume at the Chilean Stock Market. To capture any nonlinear behavior in the series we estimate Smooth Transition Autoregressive (STAR) models and test them against the linear...

This paper assesses empirically the contribution of key macroeconomic and institutional variables in shaping the likelihood of choosing the Inflation Targeting (IT) regime in a sample that comprises countries working under such a regime and covers the period 1975-2005. I find inflation rate,...

This paper introduces adaptive learning and endogenous indexation in the New-Keynesian Phillips curve and studies disinflation under inflation targeting policies. The analysis is motivated by the disinflation performance of many inflation-targeting countries, in particular the gradual Chilean...

Different studies have analyzed monetary transmission in Chile, and the effects of monetary policy on aggregate macroeconomic variables. However, valuable information, relevant for the design and management of monetary policy, can be obtained in a more specific analysis of the impact of monetary...

We use detailed Chilean plant-level data from 1990 to 2000 to study the impact of Chinese import competition in manufacturing industries. We study whether China’s imports have been associated with a downsizing of manufacturing plants or whether firms have escaped Chinese competition through...

A price equation based on a model of imperfect competition was estimated using quarterly data for Chile from 1986:1 to 2001:1. The estimation includes the first difference of the dependent variable following the literature on the estimation of linear quadratic adjustment cost (LQAC) models, when...

This paper provides econometric evidence on the effectiveness of targeting inflation in order to reduce the rate of inflation in Chile in the 1991-97 period. This paper shows that the inflation target altered the inflationary dynamic, by following through with out–of-sample forecasts with VAR...