We develop a two sector competitive equilibrium model that rationalizes the gender pay gap by the coexistence of two mechanisms: a statistical discrimination mechanism linked to a stereotype belief in which women engage in child-rearing activities while men do not and a self-selection mechanism...

This paper explores theoretical linkages between poverty traps, economic inequality and delinquency in a perfect competition overlapping generations model characterized by dual legal production sectors and one illegal sector. The model posits an absence of credit for human capital accumulation,...

An optimal monetary policy Taylor rule is developed for an open economy, which we then estimate following a Markov regime-switching model for quarterly data from Colombia during 1990-2011. We find two opposite monetary regimes characterized by different policy rules: until October 2000 the...