Business cycle asymmentries: An investment cost approach

In this paper, investment cost asymmetry is introduced in order to test wheter this kind of asymmetry can account for asymmetries in business cycles. By using a smooth transition function, asymmetric investment cost is modeled and introduced in a canonical RBC model. Simulations of the model with Perturbations Method (PM) are very close to simulations through Parameterized Expectations Algorithm (PEA), which allows the use of the former for the sake of time reduction and computational costs. Both symmetric and asymmetric models were simulated and compared. Deterministic and stochastic impulse-response excersices revealed that it is possible to adequately reproduce asymmetric business cycles by modeling asymmetric investment costs. Simulations also showed that higher order moments are insu_cient to detect asymmetries. Instead, methods such as Generalized Impulse Response Analysis (GIRA) and Nonlinear Econometrics prove to be more e_cient diagnostic tools.

Investment in transport capacity and regulation of regional monopolies in natural gas commodity markets

This paper develops a model of the regulator-regulated firm relationship in a regional natural gas commodity market which can be linked to a competitive market by a pipeline. We characterize normative policies under which the regulator, in addition to setting the level of the capacity of the pipeline, regulates the price of gas, under asymmetric information on the firm’s technology, and may (or may not) operate (two-way) transfers between consumers and the firm. We then focus on capacity and investigate how its level responds to the regulator’s taking account of the firm’s incentive compatibility constraints. The analysis yields some insights on the role that transport capacity investments may play as an instrument to improve the efficiency of geographically isolated markets.

An Empirical Examination of the Determinants of Foreign Direct Investment: A Firm-Level Analysis for the Colombian Economy

We use a large firm level data set to investigate the determinants of foreign direct investment(FDI) in Colombia. We estimate econometric models for the determinants of the probabilitythat a firm receives FDI, as well as for the factors that help to explain the foreign share in afirm’s capital. The results show that firms listed on the stock market, involved in foreign tradeactivities, and operating in sectors with greater capital intensity are more likely to be recipientsof FDI. Also, the probability of a firm receiving FDI is directly related to its size.

Sectoral investment composition, capital services measurement and growth in Colombia

This is mainly a discussant paper on measurement criteria upon sector’s investment and capitalservices and the way these composition and measurement issues come to have an impact ongrowth figures for some major sectors of the Colombian economy. The main focus is on distinctionmatters regarding the measurement of capital stock and capital services in the productionprocess. The availability of appropriate data, widely discussed throughout the document, impliesthat major affirmations are more hypothetic than indicative or descriptive in style. Moststatements are established as a motivation device for studies on sector’s activities with a focus onconsistency with aggregate figures.

Informality in the City: a Theoretical Analysis

This thesis theoretically studies the relationship between the informal sector (both in the labor and the housing market) and the city structure.