This paper analyses capacity markets and proposes an approach to incorporate the flexibility of residential consumers in these markets considering reliability as a differentiated product. We introduce and assess the potential of non-linear pricing schemes, specifically priority pricing...

We extend a standard multivariate filter used to estimate the Output Gap (OG) in Chile to account for large economic shocks, such as those observed during the COVID-19 crisis. We propose two methodological extensions. First, we introduce exogenous supply shocks in the dynamics of potential...