This paper uses a dynamic model of trade with specific factors of production to analyze the evolution of an economy that opens to international trade. Each period the allocation of labor is determines by previous period investment. The model cannot adapt instantaneously to free trade conditions,...

Esta nota estudia los determinantes de la tasa apropiada para fijar peajes de transmisión. Para ello se desarrolla un modelo simple que permite descomponerla en una suma de la tasa libre de riesgo y el premio por riesgo. Los principios generales son dos: (a) la tasa debiera ser variable y...

This note is a brief introduction to the strategic theory of inflation initiated by Barro and Gordon (1983a). The discussion is organized around the question of which are the causes of inflation according to the strategic theory. I show that the answer depends on whether the Central Bank can...