This paper econometrically examines the factors determining the real estate price dynamics in Chile in the period 1990-2007. For such purpose, we use annual data of 419 homes located in the Metropolitan Area and acquired in that period. The results indicate that variables such as age and size...

In this paper we estimate the factor model given by the Arbitrage Pricing Theory (APT), using a statistical model that has not yet been applied to Chilean financial market returns: the Principal Components Method. Using bond and stock indexes, we identify four factors of systematic risk for the...

Trade data shows that real exchange rate fluctuates more than other variables such as consumption and GDP, and also presents significant deviations from the Law of One Price. In light of these facts, this paper develops and estimates a non-monetary DSGE model under financial autarky for...