SE INFORMA QUE POR FUERZA MAYOR, SE SUSPENDE EL SEMINARIO ECON-UCHILE QUE SE REALIZARÍA ESTE MIÉRCOLES 18 DE JUNIO A LAS 13:00 HORAS.

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El Departamento de Economía de la Universidad de Chile tiene el agrado de invitar a usted a un nuevo Seminario Académico:

Título - Financial Frictions in a Two-Sector Small Open Economy Model

Autores - Sofía Bauducco (Banco Central de Chile), Rodrigo Caputo (Banco Central de Chile)

Presenta - Rodrigo Caputo (Banco Central de Chile)

Abstract - Our paper contributes to the ongoing debate about the rol of policymakers in the face of sudden-stops. We develop a small open economy model in which there is an occasionally binding collateral constraint to international borrowing. We introduce production into the economy. In particular, nontradable output is produced by ?rms that hire labor. We assume labor is not mobile across economic sectors. In particular, labor cannot be reallocated from the nontradable to the tradable sector. As a result, in our model the reallocation channel, which is a salient feature of some recent contributions, is absent. We believe that our setup is a realistic characterization of a small open economy that produces a commodity good with no labor mobility and/or speci?c capital. We conclude that evolution of borrowing is the same under both, the competitive and social planner equilibrium. As a consequence, in our model the social planner cannot improve upon the competitive equilibrium allocation in terms of the occurrence of a crisis. In the same vein, the evolution of tradable consumption does not change across equilibriums. The social planner, however, induces worker to work less and reduce the consumption of nontradables. As a consequence, the social planner can sustain a higher relative price of nontradable, without changing the value of the colateral but exploiting more e?ciently the trade-o? between consumption and leisure.

El  Seminario  se realizará el miércoles 18 de junio de 13:00 a 14.00 hrs, en  la Sala P-308 Tercer Piso del edificio Placa de la Facultad de Economía y Negocios de la Universidad de Chile, ubicada en Diagonal Paraguay 257.