This paper applies clustering analysis to the Colombian armed conflict. Indeed, when applied to a FARC terrorist act database, this statistical procedure finds a natural clustering of the different FARC units according to the different types of terrorist acts they commit and identifies the...

We enhance a standard RBC model to account for military expenditure and the costs of an internal conflict or war. The model captures the natural trade-off in military expenditure: crowding out of private consumption and investment but less destruction (and, therefore, higher marginal...

In this paper I address two questions. First, is the fall in the cyclical volatility of U.S. commercial banking productivity a potential candidate to account for the mid-80's fall in U.S. business cycle volatility? Second, does the answer to the previous question change under the presence of...

The Kiyotaki-Moore (1997) framework is a prominent macro model that features credit constraints as an important factor that propagates and magnifies the effects of shocks. However, the quantitative importance of these constraints in this setup remains an open question. This paper introduces the...