Awards & Achievements (3)
Grant · Sep 2012
Research Grant awarded by the School of Economics and Finance
Scholarship · Sep 2011
Master Scholarship for Studying Overseas
Scholarship · Sep 2008
Scholarship for academic merits
We are trying to understand what is the role of Rating Agencies in Sovereign bond markets. In an environment with non enforceable debt contracts and asymmetric information, we assume that Rating Agencies are able to bridge the information gap imperfectly. We have early evidence that show that this mechanism is a good explanation for the sudden spread spike that is observable in Greek data.
Research Item (11)
Question - Is there a bivariate probability density function that depends on the correlation coefficient between the two random variables?
Thank you! I was hoping for a simpler form, since the rest of my model is already computationally costly.
- Feb 2016
I build a macroeconomic model with heterogenous households that determine how much to deduct from a broad definition of income in order to compute the taxable income. This tax avoidance mechanism is crucial to obtain a better matching for the empirical facts regarding households' responses to tax reforms and the available data about allowable deductions and exemptions for the United States. When tax avoidance is present, the optimal policy mix implies a capital income tax rate of 53% and a labour income tax rate of 10%, both lower compared to a setting where tax avoidance is absent. Additionally, in the former economy the government relies more heavily on consumption taxation in order to finance the stream of public expenditure.
This work deepens the analysis of the “dark side” of social capital proposed by Alejandro Portes and Patricia Landlot and revisited by Peter Graeff. For this purpose, it combines the individualistic approach of economic theory with the social perspective of other social sciences to study the economics of corruption embedded in a social structure (a network of trust). It assesses the importance of social relations as a necessary condition to achieve corrupt objectives. To do so, a model of corrupt public contracts embedded in networks of trust is built. Theoretical evidence is found on the importance of networks of trust for the success of corrupt deals between officials and recipients. In addition, seeds are sown for future research and analysis of the role of institutions and monitoring agencies. Finally, the foundation is laid for research in the field of experimental economics to conduct an empirical examination of this proposed model and some policy implications are derived.
This paper examines the impact of economic, social and institutional variables on the tax burden and the tax effort of 18 Latin American countries from 1975 to 2007. The findings confirm the importance of the traditional determinants of tax revenues in the region, including the level of national development, mining and manufacturing specialization, and capital investments. In addition, however, we also find a positive effect of membership in the regional block for MERCOSUR countries, and a negative effect of membership in other trade blocks. Finally, we show the important role ofinstitutional factors, and find that public perceptions of civil and political liberties affect both tax collection and tax revenues. The study concludes that countries in the region continue to have tax burdens below their potential due to their macroeconomic structure, although there has been a general improvement since 1975.
Resumen Este documento presenta un Modelo de Consistencia Macroeconómica para una economía dolarizada como la Ecuatoriana. Sobre la base de un simple marco contable que combina la matriz de contabilidad social con el flujo de fondos, se integran los diferentes sectores de la economía a través de una matriz de ingresos, gastos, ahorro y acumulación de activos y pasivos. Esto se hace mediante la Matriz de Consistencia desarrollada por Easterly (1989), ya que especifica los vínculos entre las fuentes y usos de fondos, así como entre las cuentas de cada sector institucional. Este enfoque garantiza la consistencia de la información procedente de diferentes fuentes de tal manera que se cumple con las restricciones presupuestarias intra-e intersectoriales para cada uno de los cinco sectores y para la economía en su conjunto. De este modelo es posible obtener una estimación de la liquidez, los subsidios del gobierno, y las brechas de la economía ecuatoriana. Abstract This document presents a Macroeconomic Consistency Model for a dollarized economy such as Ecuador. Based on a simply accounting framework that combined the social accounting matrix with the flow of funds, we integrate the different sectors of the economics through a matrix of income, expenditure, saving, and asset and liability accumulation. This is done by using Easterly's (1989) Consistency Accounting Matrix which specifies the linkages between sources and uses of funds as well as between institutional sector accounts. This approach ensures the numerical consistency of data drawn from different sources in such a way that, both, the sectoral budget constraints as well as the overall economy-wide budget constraints are simultaneously satisfied. From this model we were able to estimate the liquidity of the economy, the actual amount of government subsidies, and the gaps in the ecuadorian economy.