We explore the stabilizing effects of unemployment insurance in Chile. A dynamic general equilibrium model is calibrated for the Chilean economy for the 1960-2000 period. We assume that the economy is subject to exogenous technological shocks and that a fraction of the population is liquidity...

In this paper, we explore the effects of government subsidies (monetary and in-kind) in presidential elections in Chile in 1989-2000. Our dependent variable is the percentage of votes obtained by the incumbent. We use a panel with three periods (the elections of 1989, 1993 and 1999) and 228...

This paper addresses the role of taxes over the firm’s investment decisions. We propose a framework that considers microeconomic decisions to evaluate aggregate effects of taxes over the economy’s investment dynamics. We obtain strong results and policy recommendations. First, and contrary...

Este documento discute qué hubiese ocurrido en la economía chilena si no se hubiera realizado la reforma de pensiones de 1981. El énfasis de la discusión se pone en la sustentabilidad fiscal del sistema de pensiones, su grado de cobertura, niveles de pensiones y su impacto en la acumulación...

This paper develops a simple model in which individuals rationally determine their body-mass by choosing food ingestion and time spent exercising. We show that multiple equilibria in body-mass might exist due to two forces with opposite effects. Firstly, an increase in body-mass has a negative...

Este documento se centra en analizar los mecanismos de transmisión de los desalineamientos monetarios y cambiarios sobre la inflación. Su objetivo es contribuir a este debate por medio de analizar los determinantes de corto plazo de la inflación, y a partir de estos, proveer ciertas...

Este trabajo presenta una metodología para valorizar reducciones de tasas de mortalidad. El valor de la vida se mide a partir de un modelo en que las agentes eligen sus patrones de consumo y ocio óptimos enfrentando probabilidades exógenas de supervivencia. Las condiciones de primer orden,...

The paper describes the effects of the non-funded social security systems over fertility rate and labor supply(typically family choice variables). We show that changes on fiscal policy may induce subsequent changes on family choices which produce an endogenous problem of sustainability over the...

This paper explores which large economy blocks determine foreign inflation around the world. In the analysis, we focus on importable goods of 15 countries ranging from 1992 to 2002 at monthly basis. Using a SUR estimation, we find the US driving the inflation of importable goods around the...

This paper studies the impact of fiscal policy on economic activity by using Chilean annual data from 1833 to 2000. The data allows us to disentangle the impacts on economic activity -- due to the large variation in fiscal policy in the period under study -- by using a SVAR methodology. The...