Financial Frictions, Foreign Direct Investment, and Growth

This paper assesses the role of financial frictions and Foreign Direct Investment (FDI) on an economy´s growth rate, business cycle volatility, and firm´s capital structure. We gauge these effects within the Financial Accelerator framework, where entrepreneurs can establish affiliates of local firms abroad through Foreign Direct Investment. Model simulations suggest that in the presence of credit market imperfections FDI is associated with faster growth, less leverage, and lower aggregate volatility. These features are consistent with the macroeconomic dynamics of the more globally integrated economies over the last three decades.Output volatility, Foreign Direct Investment, International Diversification, Capital Structure

REMITTANCES, POVERTY AND INEQUALITY

This paper explores the effect of remittances across the distribution of income. Based on a panel of 46 countries that covers the period between 1970 and 2000, we find that the effect of remittances is non-monotone across the distribution of income and strongest in low income countries. The impact of remittances is positive and decreasing in income for the bottom 70 percent of the population, and negative and increasing in income in the top 20 percent of the population. All else equal, remittances decrease inequality as their effect is mostly felt among the poor and they are negatively related to the income of the rich. We estimate that for low income countries a 1 percent increase in remittances would increase the first decile¡¯s income by approximately 0.43 percent, while the same change would increase the seventh decile¡¯s income by only 0.04 percent. In contrast, a 1 percent increase in remittances is associated with a 0.10 percent decrease in the income of the top 10 percent of the population.Remittances, Poverty, Inequality, Migration

On the Distributional Effects of Trade Policy: A Macroeconomic Perspective

This paper develops a theoretical model to explore the relationship between openness to trade and long-term income inequality. Empirical evidence on the issue is mixed, though greater inequality is often cited as a possible cost of trade liberalization. To quantify the effect of liberalization on inequality I calibrate a two-sector (agriculture and non-agriculture) open-economy macroeconomic model to the Mexican economy. Agents in the model are subject to idiosyncratic, uninsurable labor income risk, and precautionary saving generates endogenous distributions of wealth and income. When preferences are characterized by subsistence floor for food consumption, trade liberalization implies large welfare gains for low wealth agents. At the same time, liberalization increases long-run wealth and income inequality. After liberalization land-owners are worse off since the price of land falls along with the relative price of the agricultural commodity. When tariff revenue must be replaced by an alternative instrument, higher labor taxes are preferred to higher taxes on consumption or capitalFree trade; inequality; agriculture

Weakly Lefschetz symplectic manifolds

The harmonic cohomology of a Donaldson symplectic submanifold and of an Auroux symplectic submanifold are compared with that of its ambient space. We also study symplectic manifolds satisfying a weakly Lefschetz property, that is, the $s$-Lefschetz propery. In particular, we consider the symplectic blow-ups of the complex projective space along weakly Lefschetz symplectic submanifolds. As an application we construct, for each even integer $s\geq 2$, compact symplectic manifolds which are $s$-Lefschetz but not $(s+1)$-Lefschetz.Comment: 22 pages; many improvements from previous versio

Determinacy and Learnability of Monetary Policy Rules in Small Open Economies

This paper evaluates under which conditions different Taylor-type rules lead to determinacy and expectational stability (E-stability) of rational expectations equilibrium in a simple New Keynesian small open economy model, developed by Gali and Monacelli (2005). In particular, we extend the Bullard and Mitra (2002) results of determinacy and E-stability in a closed economy to this small open economy framework. Our results highlight an important link between the Taylor principle and both determinacy and learnability of equilibrium in small open economies. More importantly, the degree of openness coupled with the nature of the policy rule adopted by the monetary authorities might change this link in important ways. A key finding is that, contrary to Bullard and Mitra, expectations-based rules that involve the CPI and/or the nominal exchange rate limit the region of E-stability and the Taylor Principle does not guarantee E-stability. We also show that some forms of managed exchange rate rules can help to alleviate problems of both indeterminacy and expectational instability, yet these rules might not be desirable since they promote greater volatility in the economy.

Geometric analysis of Lorentzian distance function on spacelike hypersurfaces

Some analysis on the Lorentzian distance in a spacetime with controlled sectional (or Ricci) curvatures is done. In particular, we focus on the study of the restriction of such distance to a spacelike hypersurface satisfying the Omori-Yau maximum principle. As a consequence, and under appropriate hypotheses on the (sectional or Ricci) curvatures of the ambient spacetime, we obtain sharp estimates for the mean curvature of those hypersurfaces. Moreover, we also give a suficient condition for its hyperbolicity.Comment: Final version (January 2009). To appear in the Transactions of the American Mathematical Societ

Soil carbon sequestration rates under Mediterranean woody crops using recommended management practices : A meta-analysis

This work was supported by the projects: CARBOLIVAR (P11-RNM-7186) funded by Consejería de Innovación, Ciencia y Empresa of Junta de Andalucía and GEISpain project (CGL2014‐52838‐C2‐1‐R) funded by Ministerio de Economía y Competitividad, both including European Union ERDF funds. This work was also supported by the FPU 2012 grant program of the Ministerio de Educación, Cultura y Deporte of Spain. Dr. Roberto Garcia-Ruiz and Eduardo Aguilera gratefully acknowledge support by the Sustainable Farm Systems project (SSHRC 895-2011-1020) funded by the Canadian Social Sciences and Humanities Research Council.Peer reviewedPostprin

A region based approach to background modeling in a wavelet multi-resolution framework

In the field of detection and monitoring of dynamic objects in quasi-static scenes, background subtraction techniques where background is modeled at pixel-level, although showing very significant limitations, are extensively used. In this work we propose a novel approach to background modeling that operates at region-level in a wavelet based multi-resolution framework. Based on a segmentation of the background, characterization is made for each region independently as a mixture of K Gaussian modes, considering the model of the approximation and detail coefficients at the different wavelet decomposition levels. Background region characterization is updated along time, and the detection of elements of interest is carried out computing the distance between background region models and those of each incoming image in the sequence. The inclusion of the context in the modeling scheme through each region characterization makes the model robust, being able to support not only gradual illumination and long-term changes, but also sudden illumination changes and the presence of strong shadows in the scen