Marcelo Oviedo

Learn More
The data reveal that emerging markets do not differ from developed countries with regards to the variance of permanent TFP shocks relative to transitory. They do differ, however, in the degree of uncertainty agents face when formulating expectations. Based on these observations, we build an equilibrium business cycle model in which the agents cannot(More)
  • Ceyhun Bora Durdu, Boragan Aruoba, +12 authors Mark Wright
  • 2006
This paper analyzes the macroeconomic implications of real-indexed bonds, indexed to the terms of trade or GDP, using a general equilibrium model of a small open economy with financial frictions. Although indexed bonds provide a hedge to income fluctuations and can thereby mitigate the effects of financial frictions, they introduce interest rate(More)
Governments in emerging markets often behave like a “tormented insurer”, trying to use non-state-contingent debt instruments to avoid cuts in payments to private agents despite large fluctuations in public revenues. In the data, average public debt-GDP ratios decline as the variability of revenues increases, primary balances and current expenditures follow(More)
Governments in emerging markets often behave like a “tormented insurer” who tries to smooth government outlays given the randomness of public revenues in a world with “liability dollarization” in which they can only issue debt denominated in hard currencies, or indexed to tradable goods prices. How can a fiscal authority tell if the stock of public debt is(More)
The Mexican Institute of Social Security (IMSS) is Mexico's Largest state-financed health care system, providing care to 50 million people. This system comprises 1450 family medicine clinics staffed by 14,000 family physicians, as well as 240 secondary care hospitals and 10 tertiary care medical centres. We developed a program of continuing medical(More)
Sudden Stops are characterized by large current account reversals, severe recessions, and corrections in relative prices. This phenomenon is a puzzle for a large class of business cycle models in which the current account is a vehicle for consumption smoothing and investment financing. Models in this class explain Sudden Stops as the result of large,(More)
Governments in emerging markets often behave like a “tormented insurer”, trying to use non-state-contingent debt instruments to avoid sharp adjustments in payments to private agents despite large fluctuations in public revenues. In the data, their ability to sustain debt is inversely related to the variability of their revenues, and their primary balances(More)
We introduce a new measure of the extent of federal regulation in the U.S. and use it to investigate the relationship between federal regulation and macroeconomic performance. We find that regulation has statistically and economically significant effects on aggregate output and the factors that produce it–total factor productivity (TFP), physical capital,(More)
Governments in emerging markets often behave like a “tormented insurer,” who would like to smooth government outlays given the randomness of public revenues in an imperfect world where the only public debt instrument is a non-state-contingent bond denominated in units of tradable goods. How can a fiscal authority tell if the stock of public debt is(More)
133 * Enrique G. Mendoza, mendoza@econ.umd.edu, Professor, Department of Economics, University of Maryland, and Research Associate, National Bureau of Economic Research (nber); P. Marcelo Oviedo, oviedo@iastate.edu, Assistant Professor, Department of Economics, Iowa State University. An earlier version of this paper (nber Working Paper 10637, July 2004) was(More)