We examine the dynamics growth in a simple economy with two industrial sectors that exert externalities on each other. We find a solution to the dynamic game that ensues between the two sectors and compare it to the efficient cooperative solution. We show that internalize the externality. The...

This paper estimates the cost of energy shortages to Chilean industry. The information was obtained from a sample-survey carried out shortly after the 1989 electricity restriction. The results obtained show that a 10%, one-month, equi-proportional restriction involves and average net outage cost...

The empirical evidence presented in this paper casts serious doubts on the by now widely accepted "stylized facts" of the exchange rate based stabilization programs (ERBS) as they are stated in Kiguel and Liviatan (1992) and in Végh (1992). Even though the ERBS programs were associated with...

This paper analizes the evolution of the FDI flows to ALADI and the macroeconomic and political factors that "determine" this flows. The econometric model includes variables that represent theoretical components such as: the degree of economic development; the market size and its dynamics; the...

The labor reform which began in Peru in 1991 has generated a new labor context. The aim of this article is to analyze the effect of the change in labor legislation on the labor market adjustment process of Lima Metropolitana. By means of the analysis of unemployment structure and of the time...

The main purpose of this paper is to answer the following question: which factors explain the persistence of fluctuation in the Peruvian economy? We answer it constructing a non-linear deterministic dynamical system obtaining fluctuations as a result of structural aspect of the Peruvian economy....