Raúl Aníbal Feliz

Cointegration and tests of a classical model of inflation in Argentina, Bolivia, Brazil, Mexico, and Peru

Abstract We develop a classical model of inflation with rational expectations that carries a number of testable implications. First, money growth and inflation are cointegrated. Second, the changes in real money demand — the equilibrium error — anticipate future monetary policy. Third, cointegration between money growth and inflation implies, as Campbell and Shiller ( Journal of Political Economy , 1987, 95, 1062–1088, and Journal of Economic Dynamics and Control , 1988, 12, 505–522) show, cross-equation restrictions readily generated from an error-correction representation of the variables. Our results show that the allegedly different inflationary experiences of Argentina, Bolivia, Brazil, Mexico, and Peru are consistent with this classical model of inflation. In all countries, the data fail to reject these three conditions in all but one of the periods studied.

The optimal extraction rate of a natural resource under uncertainty

Abstract The objective of this paper is to derive the optimal rate of depletion of non-renewable natural resource by a monopolist under uncertainty conditions on the evolution of the reserve stock of that natural resource.