This paper analyses the evolution of the South American Common Market, Mercosur. It shows how the lack of coordination of macroeconomic policies, especially of the two major participants (Argentina and Brazil), had caused trade strains and conflicting interests in attracting foreign investments....

This paper establishes the existence of a stationary equilibrium and a procedure to compute solutions to a class of dynamic general equilibrium models that are useful for studying entrepreneurship. The models have two important features. First, occupational choice (entrepreneur or worker) is...

This paper studies the impact of the level and volatility of the commodity terms of trade on economic growth, as well as on the three main growth channels: total factor productivity, physical capital accumulation, and human capital acquisition. We use the standard system GMM approach as well as...