Identification and Estimation of Distributional Impacts of Interventions Using Changes in Inequality Measures

This paper presents estimators of distributional impacts of interventions when selection to the program is based on observable characteristics. Distributional impacts are calculated as differences in inequality measures of the marginal distributions of potential outcomes of receiving and not receiving the treatment. The estimation procedure involves a first non‐parametric estimation of the propensity score. In the second step weighted versions of inequality measures are computed using weights based on the estimated propensity score. Consistency, semi‐parametric efficiency and validity of inference based on the percentile bootstrap are shown for the estimators. Results from Monte Carlo exercises show its good performance in small samples. Copyright © 2015 John Wiley & Sons, Ltd.     

Asymptotic expansion for some local volatility models arising in finance

Decisions in Economics and Finance - In this paper, we study the small noise asymptotic expansions for certain classes of local volatility models arising in finance. We provide explicit expressions...     

Stability and Vulnerability of the Latin American Middle Class

The geographical allocation of Spanish aid has been little studied, despite its unusual concentration on middle-income countries. This paper develops a theoretical model in which aid allocation depends on a combination of recipient needs, donor interests and performance criteria, and estimates it econometrically for Spain. The results show that the allocation of Spanish aid has been influenced both by Spain's own foreign policy interests and by recipient needs for poverty reduction and development (although not by the quality of recipient governance or recipient absorptive capacity). Former Spanish colonies received a disproportionate share of Spain's aid (as is true mutatis mutandis for other European countries), but aid is allocated among them with greater regard to recipient need than is Spain's aid to other developing countries.     

NUMERAIRE,SAVINGS AND THE INSTABILITY OF A COMPETITIVE EQUILIBRIUM

This paper addresses the stability of a multimarket competitive equilibrium. The dependence of stability on the choice of the numeraire is clarified. The traditional tâtonnement pricing is revised in order to satisfy some basic features of economic behaviour. Well‐known conditions for local stability are proved to be insufficient if a market for credit is introduced alongside the markets of dated commodities. Stability depends not only on the slopes of the demand and supply curves, but also on equilibrium prices. This result emerges without the occurrence of capital perversities, such as reswitching and reverse capital deepening.     

Spatial modeling of stock market comovements

We model the complex global dependencies in international financial markets using spatial techniques. Our methodology allows us to go beyond conventional correlation analyses and volatility-spillover models confined to studying pairwise relationships, and improves the accuracy of return predictions. We find that stock market comovements are unrelated to geographical proximity, and that financial linkages, as measured by foreign direct investment (FDI) ties, are important in accounting for markets comovements. Our results suggest that the proposed measure of financial distance, coupled with spatial methodology, captures fairly accurately the dependencies in the world financial markets, providing important implications for policymaking and portfolio management.     

Modeling exchange rate passthrough after large devaluations

Large devaluations are generally associated with large declines in real exchange rates. We develop a model which embodies two complementary forces that account for the large declines in the real exchange rate that occur in the aftermath of large devaluations. The first force is sticky nontradable-goods prices. The second force is the impact of real shocks that often accompany large devaluations. We argue that sticky nontradable goods prices generally play an important role in explaining post-devaluation movements in real exchange rates. However, real shocks can sometimes be primary drivers of real exchange-rate movements.     

Labor Reform in Mexico,Analysis of Principal Changes and Method of Recruitment

Actually, the country＇s development aims to achieve higher levels of productivity, so it had to adapt to international standards. This has served to ease the hiring of both operational and managerial controls, giving emphasis on training and allowing the pairing boss-worker to take the productivity like benchmark. The labor reform allows companies to make changes with their workers; such changes must be reflected in lower costs for businesses, by labor input and increased competitiveness, however, two years ago this guideline was implanted and society asks if the results are congruent, because Mexican society is undergoing economics problems issue as well as a deficit in generating jobs. Therefore, analyzing whether modifications made to the federal labor law （FLL） are designed to optimize safety of workers and enterprises in which they work is the subject of this research. The corresponding analysis was performed using the deductive method.