This paper characterizes, empirically, the conduct of monetary policy in a small open economy. In particular, using as a case study the Chilean inflation targeting experience, we assess the role of the exchange rate in the determination of the interest rate. We conclude that Chile has adopted...

Abstract: The paper analyzes cyclical comovements in the Mercosur area differentiating idiosyncratic from common shocks. In the Mercosur (or any region for that matter) shocks can be country-specific, affecting only one country or a specific set of countries (for example, a weather-related...

Within the independent private-values paradigm, we derive the data-generating process of the winning bid for the last unit sold at multi-unit, sequential, oral, ascending-price auctions when bidder valuations are draws from different distributions; i.e., in the presence of asymmetries. When the...

This paper estimates returns to education using US data. Using the NLS and NLSY79 (dataset) average wages for workers with different ability and educational levels can be estimated. Because of the high correlation between schooling and ability it is not possible to estimate across the entire...

This paper examines the returns to the socioeconomic background of origin (or “classâ€) in the labor market in Chile. We employ individual data from several cohorts of graduates from the same program (Business and Economics) of a large and diverse public University in Chile. The data...

In this paper we review the main features of the Chilean-Style of capital controls during the nineties. In particular, we analyze empirically the effectiveness of the unremunerated reserve requirement (URR) in three key areas: its capacity to open space for monetary policy, its influence on the...

This paper investigates the microfoundation of consumer decisions in Argentina. Structural parameters are estimated following the Euler Equation-GMM approach. Attention is focussed on parameter instability, an empirical difficulty for applying this method often pointed out in the literature. The...

This paper models the supply of perishable goods within a randon framework. Perishability affects a large group of goods usually traded in the economy such as fruits and vegetables, newspapers, medicine drugs, a.s.o.. Surprisingly, one cannot find in the literature a decision model for suppliers...

The increase in income per capita is accompanied, in virtually all countries, by two changes in the structure of the economy: an increase in the share of government spending in GDP and an increase in female labor force participation. This paper suggests that these two changes are not just...

This paper examines the long-run dynamics and the cyclical structure of the US stock market using fractional integration techniques. We implement a version of the tests of Robinson (1994a), which enables one to consider unit (or fractional) roots both at the zero (long-run) and at the cyclical...