We find that in a sample of emerging economies business cycles are more volatile than in developed ones, real interest rates are countercyclical and lead the cycle, consumption is more volatile than output and net exports are strongly countercyclical. We present a model of a small open economy,...

The relationship between devaluation and default risk is a central issue in the discussion of the costs and bene…ts of dollarizing emerging economies. Correct measures of these two unobserved variables are essential for assessing the welfare implications of dollarization. This paper studies...

In the period 1974-1990 Argentina’s income per capita fell by 25%. A Solow growth decomposition shows that at most one quarter of this fall can be explained by a reduction in the capital/labor ratio. A study of labor reallocation shows that between 1973 and 1993 employment expanded the most in...

This objective of this paper is to estimate the elasticity of substitution in the demand for non-tradable goods relative to tradable goods in Argentina. This parameter plays a crucial role in the analysis of the macroeconomic equilibrium of a small open economy (Mendoza, Galindo and Izquierdo...

Most Latin American countries experienced their last peak in output per capita relative to the United States’ between 1971 and 1982. Prior to this peak per capita output was rapidly catching up to the developed world. Twenty years after the peak the average country’s relative per capita...

We compare the equilibria that result from sequential and simultaneous moves when two firms compete à la Bertrand in a homogeneous-good market. and firms’ unit costs are private information. Alternatively, our setup can be interpreted as a procurement auction with endogenous quantity where...

Wage inequality in Argentina greatly increased during the nineties. During this period, a rapid and deep process of trade liberalization was implemented. In this paper we study whether trade liberalization played any role in shaping the Argentine wage structure during the nineties. Specifically,...

We study how competition from privately supplied currency substitutes a¤ects monetary policy. We focus on regimes where monetary policy must be sequentially optimal. We obtain that the workings of competition between currency and currency substitutes depend critically on government objectives....

This paper analyses the effects of relaxing one of the critical underlying assumptions of the textbook approach to investment under uncertainty for partial equilibrium models. Most textbook models assume that either the potential investor has access to a single project or she can consider...

We study the interaction of competition and reputation as e¢- ciency enhancing mechanisms in environments where informational or lack of commitment constraints a¤ect the ability of …rms to compete for market shares. We …rst analyze a dynamic model of monopolistic competition with...