Aid, Policies and Growth: A Non-Canonical Alternative for solving This Puzzle.

This paper presents a two-sector small semi-open economy Ramsey growth model involving foreign aid as an input in the production function. An activist government allocates this input endogenously across sectors and optimizes policies in a non-standard way. Once calibrated, mainly on countries exhibiting medium relative prices values, the model reproduces the main stylized facts outlined in the literature and suggests a strategy that could make aid work. --Foreign aid,Economic development,Economic growth,Quantitative approach

Dollarization of Debt Contracts: Evidence from Chilean Firms.

This paper uses a new data set to estimate the causes and consequences of foreign currency debt in rms' balance sheet. The vidence from this sample of Chilean firms indicates that dollar-denominated debt is more used by larger firms and those more exposed to foreign competition. We find evidence that dollar denominated debt combines with exchange rate movements to produce a negative balance-sheet effect that reduces firm's investment in periods of strong exchange rate depreciation. This negative balance-sheet effect is associated with long term debt and appears to be non-linear in the amount of real exchange rate depreciation.Balance sheet effects, currency mismatches, dollarization, macroeconomics of developing countries

New aspects on Current enhancement in Brownian motors driven by non Gaussian noises

Recent studies on Brownian motors driven by colored non Gaussian noises have shown that the departure of the noise distribution from Gaussian behavior induces an enhancement of its current and efficiency. Here we discuss some new aspects of this phenomenon focusing in some analytical results based in an adiabatic approximation, and in the analysis of the long probability distribution tails' role.Comment: 11 pages, 4 figs. Physica A (in press