We analyze various regulatory regimes for electricity transmission investment in the context of a transformation of the power system towards renewable energy. We study distinctive developments of the generation mix with different implications on network congestion, assuming that a shift from...

Taking as point of departure the basics of the economics of innovation, the Mexican evidence builds on two major obstacles: market failures inhibit economic returns to R&D and, consequently, the inexistence of a national innovation system. In such context, fiscal subsidies to R&D are introduced...

The competitiveness of the state of Guanajuato is linked to very few activities under the leading influence of very few municipalities. The sensibility of these locations to economic growth is also highly dependent on the performance of the very few activities: shoes, autos, oil, processed foods...

This paper reports results of an experimental study of uniform and discriminatory auctions of multiple objects in an environment of publicly known common values. We find that the bidding behavior in the uniform case exhibits two clear regularities: agents consistently play weakly dominated...

Trade and investment liberalization policies put in place in the 1980’s ushered in a new era of globalization and currently form the mainstay of global development policy. However, underdevelopment itself originated in the context of globalization in the 19th century. I first summarize the...

We estimate a small-scale macro model for the Mexican economy under the New Keynesian framework. We then estimate alternative interest rate rules for Mexico, and use the results from both exercises to evaluate the performance of the Bank of Mexico against a set of optimality principles derived...

This paper identifies one of the main determinants of the dynamics in employment. NAFTA has not benefited substantially the conditions for economic growth and, consequently, the opportunities for new employment. Contrary to expectations, the analysis reveals lower importance for manufacturing in...

In Mexico, as in most Latin American countries with indigenous populations, it is commonly believed that European phenotypes are preferred to mestizo or indigenous phenotypes. However, it is hard to test for such racial biases in the labor market using official statistics since race can only be...

We analyze the impact of local banking infrastructure on manufacturing growth in Mexican municipalities and US counties. We find that aggregate local banking deposits have a positive and significant impact on technological change, and on the use of human capital at the municipal or county level...

This paper uses structural vector autoregressions (SVAR) to characterize the dynamic impact of fiscal policy on national saving. SVAR´s have extensively been used to characterize the impact of monetary policy on the economy but have not been applied as much to analyzing fiscal policy. This...