We study economies where all commodities are indivisible at the individual level, but perfectly divisible at the aggregate level. Under general hypotheses over the economy, the ain contribution of this paper is the prove that a rationing equilibrium converge to aWalrasian equilibrium of a limit...

Although fiat money is useless in standard Arrow-Debreu models, in this paper we will show that this general conclusion does not hold true when goods are indivisible. In our setting, fiat money is valuable because it facilitates exchange, its price will always be positive and equilibrium...

In this article we apply some recently developed methodologies (Paes de Barros et al, 2008) tomeasure the evolution of the inequality of opportunity in Chile in the 1990-2006 period. Theopportunities are measured as intermediate outcomes for children such as access to preschool,access to...

Usando datos del módulo de historia laboral de la Encuesta de Protección Social para los años 2002, 2004 y 2006, se construyó un panel mensual para el período 2000-2006. Para modelar las variables que intervienen en la decisión de los individuos de trabajar por cuenta propia consideramos...

We estimate a double selection model to study informality in the Chilean labor market. We use three different measures of informality: lack of a signed contract, contribution to social security and both at the same time. The double selection states that, in a first stage, individuals chose...

Public day care centers in Chile have increased in 240% between 2005 and 2007. This paper uses this huge increase in public day care supply for infants of poor families to analyze its impact on Female Labor Force Participation. The magnitude of the expansion is used as a quasi-natural...

This paper uses alternative measures of neighborhood quality to study its impact on student performance in school. The Chilean voucher-based education system allows us to test separately for neighborhood and traditional in-classroom peer effects, which have been traditionally empha- sized by the...

In this paper we evaluate the introduction of monetary incentives for teachers, based on a school performance tournament in Chile. We evaluate the tournament effect, i.e. the effect of introducing the incentive scheme on all participant schools: winners and losers. We also evaluate the effect of...

Using a large dataset of countries during the last forty years, this paper analyzes the main determinants of export diversification. We explore the role of several factors and we use three different indicators of export diversification. We find robust evidence across specifications and...

Based on the methodology developed by Bourguignon, Melendez and Ferreira (2005) we explore the extent to which income inequality in Chile is associated with inequality of observed exogenous circumstances of origin, which shape individuals “opportunities” to pursue their chosen life plans. We...