Econometric reduction theory provides a comprehensive probabilistic framework for the analysis and classification of the reductions (simplifications) associated with empirical econometric models. However, the available approaches to econometric reduction theory are unable to satisfactory...

I study if the equilibria of the citizen-candidate model analyzed in Osborne and Slivinski (1996) are robust to some degree of commitment from candidates. In analogy with their notion of "sincere" voting, I consider one of "sincere" commitment: commitment is costless to positions closer to one's...

Spain has recently experienced more than a decade of price stability and economic growth however now is showing one of the most significant slowdowns in economic activity of the EU economies. There is a general consensus that this slowdown in economic activity is particularly important in Spain...

In thime series data, energy use does not change much with energy price changes. However, energy use is responsive to international differences in energy prices in cross-section data across countries. In this paper we consider a model of energy use in which production takes place at individual...

This paper presents a search-theoretic model where middlemen can emerge endogenously to intermediate between ex ante homogeneous buyers and sellers in the presence of coordination frictions. Middlemen set price to compete in the market, and hold an inventory to provide a high matching service. I...

In this paper, we investigate the social welfare implications of the European and American definition of affordable prices when a country is divided into independent zones. We find that the European definition is always soc ial welfare superior, because it forces to keep lower prices. We also...

We present a simple dynamic model of international trade and growth. Our equations linking exogenous and endogenous variables do not resemble those estimated by the empirical literature: Ours are not linear, despite the fact that our model is linear, they do not include variables used in this...

This paper characterizes the optimal selling mechanism in the presence of horizontal crossholdings. We find that this mechanism imposes a discrimination policy against the stronger bidders so that the seller´s expected revenue is increasing in both the common crossholding and the degree of...

We present a model where a society elects a parliament by voting for candidates belonging to two parties. The electoral rule determines the seats distribution between the two parties. We analyze two electoral rules, multidistrict majority and single-district proportional. In this framework, the...

Using detailed firm-level data, we analyze Spain’s Pharmaceutical Research Program, and find differences between the ex ante announced evaluation criteria and their ex post implementation. By studying the program’s implementation, we also uncover that the apparent discrimination against...