Documento de Trabajo

Specialization, Intermediation, and Growth

In market economies financial intermediaries develop during the early stages of industrialization. This paper argues that it occurs because as firms specialize the number of transactions involving credit increases. The main conclusions of the paper are : (a) when increased specialization is a necessary condition for growth, sustained growth may not start if financial intermediaries

Highway Franchising: Pitfalls and Opportunities

We build a conceptual framework to analyze the virtues and limitations of alternative mechanisms that can be used to auction a highway. We argue that current mechanisms, which fix the term of the franchise, create unnecesary risk and facilitate post-contract opportunism by the regulator and the franchise-holder. We propose a new mechanism that allocates the

¿Cómo licitar una concesión vial urbana?

Reformas microeconómicas en Chile 1973-1989: Síntesis y evaluación.

Limit Policies in N-Sector Dynamic Growth Games with Externalities

We examine an economy with n production sectors that interact via a production externality. We find a solution to the resulting dynamic differential game between sectors and compare it to the cooperative solution. As the number of sectors increases, the limiting policy is the optimal policy without a production externality. This policy is inefficient and,

Contingent Protection as Better Insurance

We formalize the notion that GATT exceptions such as antidumping and escape clause actions can act as insurance for import competing sectors affected by adverse price shocks. We use a general equilibrium model with several import competing sectors and assume incomplete markets so that agents cannot contract insurance. We show that these measures are superior

Financial Markets and Inflation under Imperfect Information

Nonlinear Aggregate Investment Dynamics: Theory and Evidence.

In this paper we derive a model of aggregate investment that builds from the lumpy microeconomic behavior of firms facing stochastic fixed adjustment costs. Instead of the standard sharp (S,s) bands, firms` adjustment policies take the form of a probability of adjustment (adjustment hazard) that responds smoothly to changes in firms` capacity gap. The model

Exchange Rate Policies and Capital Account Management: Chile in the 1990s

Understanding Tax Evasion Dynamics

Americans who are caught evading taxes in one year may be audited for prior years. While the IRS does not disclose its method of selecting tax returns for audit, it is widely believed that a taxpayer´s probability of being audited is an increasing function of current evasion is a decreasing function of prior evasion, since,

Ingeniería electoral en Chile

En una elección parlamentaria se desarrollan simultáneamente varias campañas electorales (una en cada distrito). Esto plantea a los partidos políticos el problema de cómo distribuir sus recursos (monetarios y no monetarios) entre estas campañas. En este trabajo se presenta un metodología que permite estimar cuán eficientemente asignaron sus recursos dos partidos (o coaliciones políticas) de

¿Qué hacer con los impuestos que pagan las ganancias de capital en Chile?

Este trabajo analiza cualitativamente las consecuencias económicas de los impuestos a las ganancias de capital actualmente vigentes en Chile. Se describen los tratamientos especiales que reciben los distintos tipos de ganancia de capital y se analizan sus consecuencias sobre la asignación de recursos. Las principales conclusiones y proposiciones del estudio son las siguientes. Primero, la