This article uses a consumer theory-based systemic approach to model the demand for monetary liquid asset holdings in Chile. We implement the suggestions and caveats of aggregation theory for the estimation of a demand system for liquid assets (monies) in static, dynamic and time-varying...

It is well known that a pay-as-you-go (PAYG) pension system lowers saving, income, and welfare of future cohorts in a one-sector economy because it entails a transfer to the first cohorts of PAYG pensioners. Is the opposite result possible in a two-sector (formal-informal production) economy?...

This paper analyzes the relations between leadership, the policy-making process, policies and institutions, and development results in Chile. It starts with a stylized model for the dynamics of development that derives a Kuznets-type relation between growth and distribution of income, determined...