The informal sector accounts for a substantial fraction of employed population in Mexico and other Latin American countries. In this paper we study the interaction between the tax and transfers system and the size and composition of informal sector. To do that we build a search model that can be...

A semi-empirical likelihood estimator is proposed for models where agents interact under asymmetric information. The methodology focuses on situations where some variables that were privately observed when choices were made become available to the econometrician afterwards. This variables are...

The general purpose of the present document is to analyze the role of several social networks into financial development. In concrete, we have the hypothesis that in locations where closed social networks with family and friends prevail, financial transactions of saving and credit are not only...

Oil in Mexico has been the cornerstone on which the Mexican State has built upon since its nationalization. It has been the main federal income source, it has supported industrial development and has allowed the State to increase international reserves. Petróleos Mexicanos (PEMEX), the National...

We estimate ordered probit models to analyze the determinants of supermarket entry. We use reduced form models in which de profits are function of observable variables. These variables influence cost and demand and therefore benefits. We use an ANTAD database that gives us the location of...

When the Mexican Pension Reform was discussed, one of the principal points argued in its favor was the positive effect over national savings. This paper carries out the first measurement of that impact using mandatory savings. We estimate a mandatory savings time series for Mexico and its...

This paper investigates empirically the relationship between inflation, inflation volatility and output growth in the case of México using monthly data over the period 1993-2011. Specifically a bivariate GARCH-M model is estimated to test the hypotheses that inflation rates are directly related...

We use Evolutionary Algorithms to approximate the Pareto frontier of a dynamic Principal-Agent model with discrete actions. The Pareto frontier that we obtain is concave, a result that is due to the asymmetry of information between the Principal and the Agent. As we move in the Pareto frontier...

This article briefly examines the recent evolution of the Mexican financial system. Based on this, obstacles are identified. It is argued that two are most important. First, the property rights protection is weak in Mexico, thus it inhibits credit expansion. Second, competition is low and it is...

This paper offers an explanation for the common observation that political incumbents not only frequently win reelection, but often face weak competition or no competition at all when running for reelection. I explain this outcome by modeling the entry decision of potential election candidates...