In this article, we modelled the Colombian long run economic growth (1925-2003) using a two-regime first order Markov switching model. We found evidence of nonlinearity in the annual rate of economic growth. The results show that changes between regimes are sudden and sporadic. The Colombian...

A long run income and price elasticities of demand is estimated for Colombian nontraditional exports through a multivariate cointegration analysis. Based on the combination of cointegration and exogeneity concepts and the inclusion of the complete dynamic system, the paper shows the existence of...

A Statement of the Colombian Constitutional Court has mandated wage indexation on the basis of past inflation. A simple model with a wage price system, a real block, and an inflation targeting interest rule is calibrated to resemble price setting in the Colombian economy and to analize the...