We examine the choice of voting rules by legal cartels with enforcement capabilities in the presence of uncertainty about demand and costs. We show that cartels face a trade-off between the commitment advantages of more stringent majority requirements and the loss of flexibility resulting from...

During the 1987-1993 period, all education-experience skill classes in Mexico have experienced significant employment and real wage growth. This growth was accompanied by a large increase in wage dispersion within and across skill classes. While shifts in labor supply are unlikely to explain the...

We consider an optimal mechanism design problem with several heterogeneous objects and interdependent values. We characterize ex post incentives using an appropriate monotonicity condition and reformulate the problem in such a way that the choice of an allocation rule can be separated from the...

I study an overlapping generations model where physical and human capitals are inputs of production that can be accumulated by witholding resources from current consumption. Human capital is the output of a schooling system which can be financed either by private expenditures or by taxes on...

The principal aim of this article is to provide commentary on the use of high-performance computers combined with numerical algorithms in the investigation of mathematical models of economic activity. The use of computer simulation to provide insight into mathematical models is distinguished...

We introduce a variable rate of capital utilization and depreciation into a modified Ramsey- type neoclassical growth model via the well-known concept of pure user cost. The optimal utilization rate is found to be determined by the opportunity cost of holding capital or the net real interest...

We ask when firms with increasing returns can cover their costs independently by charging two-part tariffs (TPT's)---a condition we call independent viability. To answer, we develop notions of substitutability and complementarity that account for the total value of goods and use them to find the...

Between 1988 and 2002, the real exchange rate in Mexico appreciated by 45%. We account for this movement in relative prices using a two sector, dynamic general equilibrium model of a small open economy with tradable an non-tradable goods. The model allows us to identify the effect of the...

Over the last decade, the ownership of the banking sector in Latin America has changed hands from local shareholders to large foreign banks from Spain and the United States. It is also a fact that the foreign exchange market in these countries has been segmented through various kinds of...

An important tool in time series analysis is that of combining information in an optimal manner. Here we establish a basic combining rule of linear estimators and exemplify its use with several different problems faced by a time series analyst. A compatibility test statistic is also provided as...