Our paper addresses the issue on the interaction between monetary and macroprudential policies in small open economies for different exchange rate regimes. The need for macroprudential policy arises from exacerbated macroeconomic fluctuations due to frictions in the financial system as in...

This study uses simulations of state-dependent distributions of fiscal limits for 18 economies in Central America and the Caribbean to better understand governments' ability to service their debt, arising from endogenously determined dynamic Laffer curves. Using a small, open economy model to...

Our paper addresses the issue on the interaction between monetary and macroprudential policies in small open economies for different exchange rate regimes. The need for macroprudential policy arises from exacerbated macroeconomic fluctuations due to frictions in the financial system as in...

This paper documents recent trends of the labor supply in the Dominican Republic, and inquire about factor explaining its behavior. Entails an empirical analysis of labor supply phenomena both from a point of view of participation rate and the hours dedicated to labor market. Using information...

In this paper I analyze the dynamics of wage inequality in the Dominican Republic for the period 2000-2011. The analysis focuses on the evolution of wage inequality and the causal factors behind this phenomena. Using quantile regressions and data from the National Survey of Labour Force, several...

The aim of this work is to contribute to the literature of the role of foreign factors in determining the fluctuations of the Gross Domestic Product (GDP) in small, open and developing countries. The following external variables are considered: terms of trade, foreign GDP, foreign inflation and...

This paper specifies and estimates a structural model of a small open economy to the Dominican Republic. The objective is to provide an analytical framework based on a rigorous theoretical component, but also including aspects that capture satisfactorily the dynamics of macroeconomic variables...

This paper examines the role of disaster shock in a one-sector, representative agent dynamic stochastic general equilibrium model (DSGE). First, it estimates a panel vector autoregresive (VAR) model for output, investment, trade balance, consumption, and country spread to capture the economic...

This study contends that Caribbean countries cannot adequately surmount their fiscal and debt challenges in the absence of binding rules that are geared toward entrenching fiscal discipline, curbing fiscal procyclicality, and improving budget transparency and credibility. Distilling global...