Browsing FGV EESP - Textos para Discussão / Working Paper Series by Author "Guimarães, Bernardo de Vasconcellos"
Now showing items 1-13 of 13
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Contingent judicial deference: theory and application to usury laws
2017Legislation that seems unreasonable to courts is less likely to be followed. Building on this premise, we propose a model and obtain two main results. First, the enactment of legislation prohibiting something raises the ... -
A coordination approach to the essentiality of money
2015-03-16The essentiality of money is commonly justi ed on e¢ ciency grounds. In this paper, we propose an alternative view on the essentiality of money. We consider an economy with llimited monitoring where agents have to coordinate ... -
Coordination in the use of money
2013-08-02Fundamental models of money, while explicit about the frictions that render money essential, are silent on how agents actually coordinate in its use. This paper studies this coordination problem, providing an endogenous ... -
Demand expectations and the timing of stimulus policies
2015-03-16This paper proposes a simple macroeconomic model with staggered investment decisions. The model captures the dynamic coordination problem arising from demand externalities and fixed costs of investment. In times of low ... -
The determinants of IMF fiscal conditionalities: economics or politics?
2015-06-01Conditionalites, measures that a borrowing country should adopt to obtain loans from the IMF, are pervasive in IMF programs. This paper estimates the effects of political and economic factors on the number of conditionalities ... -
Dynamic coordination among heterogeneous agents
2015-03-16We study a dynamic model of coordination with timing frictions and payoff heterogeneity. There is a unique equilibrium, characterized by thresholds that determine the choices of each type of agent. We characterize equilibrium ... -
Dynamic coordination with timing frictions: theory and applications
2017We start by presenting the general model of dynamic coordination with timing frictions and some key theoretical results. We prove the model features a unique rationalizable equilibrium, present a method to solve the social ... -
The effect of options on coordination
2013-08-02This paper studies how constraints on the timing of actions affect equilibrium in intertemporal coordination problems. The model exhibits a unique symmetric equilibrium in cut-o¤ strategies. The risk-dominant action of the ... -
Isolated capital cities and misgovernance: theory and evidence
2013-08-02Motivated by a novel stylized fact { countries with isolated capital cities display worse quality of governance { we provide a framework of endogenous institutional choice based on the idea that elites are constrained by ... -
A model of the rule of law
2015-03-16Economic development requires some limits on what those in power can do | the rule of law | but how can restraints be imposed on the powerful when there is no-one above them? This paper studies equilibrium rules allocating ... -
State-controlled companies and political risk: evidence from the 2014 Brazilian election
2016This paper examines the vulnerability of state-controlled companies to political risk using the 2014 Brazilian election and data on stock options. In her first term as Brazilian president, Ms. Dilma Rousseff took measures ... -
Time-dependent or state-dependent pricing? Evidence from firms’ response to inflation shocks
2015-03-25This paper proposes a test for distinguishing between time-dependent and state-dependent pricing based on whether the timing of pricing changes is affected by realized or expeted inflation. Using Brazilian data and exploring ... -
US real interest rates and default risk in emerging economies
2012-09-12This paper empirically investigates the impact of changes in US real interest rates on sovereign default risk in emerging economies using the method of identification through heteroskedasticity. Policy-induced increases ...
