We empirically study whether countries that default on their debt experience a reduction in their capital inflows, as suggested by the literature. Our data contain information on (i) the defaulter countries and their creditors and (ii) bilateral foreign direct investment (FDI) flows. With these...

We explain how specific dynamical properties give rise to the limit distribution of sums of deterministic variables at the transition to chaos via the period-doubling route. We study the sums of successive positions generated by an ensemble of initial conditions uniformly distributed in the...

In this article, we study the effect of North American Free Trade Agreement (NAFTA) on the responsiveness of Mexican economy to real exchange rate shocks. We argue that, by opening the US and Canadian markets to Mexican goods, NAFTA made it easier for domestic producers to take advantage of the...

We study steady state optimal taxation in a context where firms differ in productivity and they decide whether to produce in a formal sector where the government raises taxes or an informal sector where it cannot do so. The government taxes capital income, firms’ profits and labor income. In...

We analyze the IMF as a lender to countries in financial distress highlighting the fact that it is a senior creditor. An advantage of delegating senior lending in a single institution rather than on competitive markets is that it would be able to reach the socially optimal solution. This would...