The aim of this paper is to show the convenience of using mathematical tools from quantum mechanics to solve some financial problems. In particular, the Vasicek short-rate model in continuous time is discussed in the framework of the Feynman path integral. To do this, the Lagrangian of the...

This paper develops a macroeconometric simulation model for Mexico on a microeconomics basis. This proposal has several distinctive features that makes it different from other models that have been previously elaborated for the Mexican economy. Behavioral relationships are not specified in an...

This paper develops, in a small open economy framework, a stochastic model of exchange-rate-based inflation stabilization that is expected to be temporary. Agents have expectations of devaluation driven by a mixed diffusion-jump process where the expected size of a possible devaluation is...

This paper analyzes whether the dynamics of the balance of payments (BP) of Mexico has been a constraint on Mexicos Economic Growth. The literature on the subject discusses the growth restriction of the balance of payments based on the external imbalance problem. Empirical evidence has shown...

In this investigation we determined the optimal tax in a game of two stages that must pay a consumer who contaminates the environment by the remainder of envelopes and containers of goods. In the first stage the government establishes a contamination threshold and the consumer determines the tax...

In this part of the research on the dynamics of the balance of payments (BP) and economic growth in Mexico several models, which were discussed in the first part, will be developed and estimated. The goal is to show empirical evidence on the impact of the external sector in economic growth. The...

This paper aims to study the behavior of the average rational consumer of an economy populated by heterogeneous agents in a finite horizon framework. Heterogeneity takes into account both the subjective discount rate and risk aversion coefficient. Closed-form solutions for the optimal paths of...

This paper shows, under certain conditions, the convergence of the GARCH (1.1)-M model to the geometric Brownian motion with mean reversion (diffusion GARCH process). The importance from this result is that the problem of inference on the parameters of the valuation models of options with...

The cost of capital is an indicator of the profitability of a company. Very often, this indicator in conjunction with the return on equity (ROE) is utilized in analyzing investment projects. Many studies have shown that the cost of capital tends to a long-term value, which reveals a mean...

This paper develops, under the framework of a small, open, and monetary economy, a stochastic model of inflation stabilization taking as a nominal anchor the exchange rate when credibility is imperfect. The agents have expectations driven by two processes: a diffusion-jump process for the...