In this paper we propose an equilibrium model that allows to analyze subsidization schemes to affect locational choices for generation investment in electricity markets. Our framework takes into account generation investment decided by private investors and redispatch as well as network...

Given the characteristics of electricity and the reforms that this sector has undergone, there is still a lot of discussion regarding the best way of ensuring adequate supply in such an environment. The situation is even more critical for countries like Colombia with high dependence on hydro...

This paper introduces the concept of marginal labour value in the framework of perfect competition and shows that prices are proportional to marginal labour values. By this marginal analysis overcomes the classical contradiction of labour commanded and labour embodied. Furthermore the curves of...

This paper studies how and why announcing and maintaining a price freeze, such as implemented between 1971 and 1973, can backfire. The vehicle for this analysis is a monopolistic firm that is shown to reduce output and raise price in anticipation of a price freeze, depending on the length of the...

Existence of phenomena such as unemployment and low earnings of the poorest social strata in both periods of recession and the economic boom, highlights the existence of root causes in society. Providing answers to the question: what are the causes and the solutions can be implemented to solve...

Existence of phenomena such as unemployment and low earnings of the poorest social strata in both periods of recession and the economic boom, highlights the existence of root causes in society. Providing answers to the question: what are the causes and the solutions can be implemented to solve...

The effect of market competition on firm innovation remains controversial, especially in the context of developing countries. This paper presents new empirical evidence about the causal impact of competition on firm innovation for Chilean and Colombian manufacturing firms. Using...

The effect of market competition on firm innovation remains controversial, especially in the context of developing countries. This paper presents new empirical evidence about the causal impact of competition on firm innovation for Chilean and Colombian manufacturing firms. Using...

We develop a growth model with unemployment due to imperfections in the labor market. In this model, wage inertia and balanced budget rules cause a complementarity between capital and employment capable of explaining the existence of multiple equilibrium paths. Hysteresis is viewed as the result...

Economists traditionally tackle normative problems by computing optimal policy, i.e. the one that maximizes a social welfare function. In practice, however, a succession of marginal changes to a limited number of policy instruments are implemented, until no further improvement is feasible. I...