In the context of an overlapping generations model, we show that liquidity constraints on households: (i) raise the saving rate; (ii) strengthen the effect of growth on saving; and (iii) increase the growth rate if productivity growth is endogenous. These propositions are supported by...

This paper investigates the role of structural reforms –privatization, financial reform and trade liberalization– as determinants of FDI inflows based on newly constructed dataset on structural reforms for 19 Latin American and 25 Eastern European countries between 1989 and 2004. Our main...

The paper is analyzing current problems of the Egyptian banking sector, which is dominated by public banks. The reported problems include a massive proportion of non-performing loans in the banks’ credit portfolios as well as significant profitability problems, especially in the public banks....

We start out from the hypothesis that limited government leads to low uncertainty and low transaction costs. If political institutions affect the degree of uncertainty and transaction costs, we formally show they should affect the steady state level of income per capita. The impact of...

La tradicional regla marshalliana de inversión (o abandono) cuando el valor del activo subyacente es mayor (o menor) al costo de la inversión se ve modificada cuando existen situaciones de incertidumbre e irreversibilidad, generando un componente de opción en dichas decisiones. Este...

The traditional marshallian rule of investing (abandoning) when the value of an underlying asset is above (below) the cost of an alternative investment is modified in the presence of uncertainty and irreversibility giving rise to an option component into decisions. This component is affected by...

La tradicional regla marshalliana de inversión (o abandono) cuando un activo vale mas (menos) que una inversión alternativa es modificada en situaciones de incertidumbre e irreversibilidad, generando un componente de opción. Adicionalmente, la interacción de varios participantes en una...

El financiamiento a través de instrumentos de deuda de una economía con ingresos volátiles y vulnerable a shocks externos incrementa los riesgos asociados al incumplimiento de crédito en situaciones de crisis, mas aún cuando la economía en su conjunto se encuentra expuesta una fuente de...

The traditional marshallian rule of investing when the value of the investment is greater than its installment cost is modified in the presence of irreversibility and uncertainty, giving rise to an option component. Additionally, the interaction of participants holding each one a right to invest...

This study provides an empirical analysis of the macroeconomic factors that can potentially affect investment decisions in Argentina in a short, medium and long run perspective. Both the theory and the empirical literature are reviewed in order to identify a private investment function for the...