This paper investigates the short run effect of a change in the relative price of imports to exports, in a context of specific capital and labor movement subject to adjustment costs. We present a graphical and mathematical (dynamic) analysis of the adjust

This paper studies the impact of fiscal policy on economic activity by using Chilean annual data from 1833 to 2000. The data allows us to disentangle the impacts on economic activity -- due to the large variation in fiscal policy in the period under study -- by using a SVAR methodology. The...

In this paper we study the heterodox stabilization plans of Argentina 1985 (Plan Austral) and Brazil 1986 (Plan Cruzado). Both plans considered that the main cause of inflation was inertia, due to indexation of wages, exchange rates and financial instrume

For policy makers and business cycles analysts is important to count on variables that anticipate points of inflection in economic activity. This paper studies aggregate real money balances as leader indicator of the economic activity based on a Probit mo

This paper identifies the dynamic effects of fiscal policy on economic activity (GDP) in the Chilean economy. We use a structural vector autoregression (SVAR) methodology. The main results are: a positive fiscal expenditure shock has a negative effect on

In this paper the role of external shocks to the Chilean economy is investigated. The empirical evidence indicates that a deterioration of the terms of trade, is the main fact explaining the decline of GDP from trend.

The traditional exception to the welfare reducing character of protectionism is based on the optimum tariff argument. If in addition the market power can be traced back to control of a necessary, cero substitution natural resource type input, then the corresponding trade tax and the shadow price...

This paper presents a simple methodology to estimate the elasticity of substitution between labor and capital for firms operating in perfectly competitive markets with CRS production functions. It is applied in a cross-country sample to 28 3-digit ISIC manufacturing industries. The econometric...