Despite two decades of rapid growth, indigenous Chileans are disproportionately poor. However, income data obtained from household surveys that are not representative by ethnicity yield imprecise estimates of poverty and inequality for these groups. This paper therefore estimates poverty and...

This article describes and characterizes the oil markets and liquid by-products in Chile from the viewpoint of industrial organization. With that objective in mind, first a systematic description is provided of each of the markets comprising this industry, taking into account the vertical...

Gasoline taxes usually represent a large fraction of gasoline prices. For this reason, when prices hike public pressure increases to either reduce or eliminate the tax to provide relief to consumers, which implicitly assumes that a tax reduction would be passed on completely to consumers....

Despite success in reducing poverty over the last twenty years, inequality in Chile has remained virtually unchanged, making Chile one of the least equal countries in the world. High levels of inequality have been shown to hamper further reductions in poverty as well as economic growth and local...

This paper examines the effects of state corporate income taxes on the location of foreign direct investment, taking into account the state governments' behavior when setting taxes. Ignoring the tax setting behavior of states may bias the estimate of the tax effects on foreign direct investment....

State governments finance their expenditures with multiple tax instruments, so when collections from one source decline, they are typically compensated by greater revenues from other sources. This paper addresses the important question of the extent to which personal and corporate income taxes...

Diesel in Chile receives a different tax treatment depending on its use. If diesel is used in industrial activities the diesel tax paid can be used as a credit against VAT and if diesel is used in freight or public transportation (basically trucks and buses) a fraction of gasoline taxes paid can...

Frequent flier programs create a switching cost for the consumer and allow firms to exercise market power. In Chile there is a dominant airline in domestic markets that has a frequent flyer program with a large number of affiliates and it faces some competition from two small carriers that do...

Many governments continue constructing new subway lines with the goal of reducing congestion and pollution in large cities. Besides the potential global effects on reducing negative externalities in the city, there are some local positive effects in terms of lower commuting time and distance for...

As the Chilean government seeks to reduce both poverty and inequality through cash transfers to poor households, local governments are responsible for both identifying the poor and allocating transfers. Until recently, however, evaluating the effectiveness of local governments in enacting these...