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research

Grading Fiscal Policy in Latin America in the Last Decade

Published in IDB Policy Briefs, 2014

Fiscal policy in Latin America has been historically imprudent and continues to be viewed with skepticism. At the same time, most countries have remained out of trouble for several years and were able to successfully conduct proactive countercyclical fiscal policy to fight the Great Recession, a historical first. This paper examines the last decade to assess progress, highlight weaknesses, and chart the way forward.

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City Minimum Wages (Job Market Paper)

2017

Winner of the 2018 S4 Graduate Student Paper Prize

Coverage: Marginal Revolution

Local minimum wage laws are becoming common across U.S. cities, and their effects may be different from effects of state or nation-wide minimum wage policies. I study the effect of changes in minimum wages on spatial equilibria in local labor markets. Using residence and workplace data for the U.S., I analyze how commuting, residence and work locations change across city and state borders when minimum wages change on either side of the border.

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Unpacking the MPI : A Decomposition Approach of Changes in Multidimensional Poverty Headcounts

Listed in World Bank Policy Research Working Paper Series

Coverage: Vox Lacea

Blog post

Multidimensional measures of poverty have become standard as complementary indicators of poverty in many countries. This paper proposes an application of existing methodologies that decompose welfare aggregates -based on counterfactual simulations- to break up the changes of the multidimensional poverty headcount into the variation attributed to each of its dimensions.

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Consumption Responses to Household Shocks in Colombia

We study the effects of household shocks on consumption across different goods in rural Colombia, using a panel dataset of households. We contrast the estimated effects to those obtained using a structural model of demand.

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The Minimum Wage in Formal and Informal Sectors: Evidence from an Inflation Shock in Colombia (Second Round, World Development)

Listed in Banco de Mexico Research Papers

Coverage: HKUST-IEMS , La Silla Vacia

I estimate the effect of the minimum wage on formal wages, informal wages, and employment in Colombia. I exploit an unexpected increase in the real minimum wage during the 1999 Colombian economic crisis to estimate short- term effects of the minimum wage along the distribution of wages in both sectors. I find evidence of wage responses, with a stronger incidence in the formal sector.

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A Sizeable Increase in the Minimum Wage and a Lower VAT: Identifying their Effects on Prices in Mexico

Coverage: Banxico , El CEO , 24 Horas

In January 2020, the minimum wage in the Mexican Border with the United States increased by a 100%. At the same time, the value-added tax (VAT) rate was halved. We develop a two-step identification strategy to estimate the effects of the minimum wage and the VAT on prices separately. We account for differential effects of the minimum wage on prices of goods with and without VAT. In the border, we find that the increase in the minimum wage is associated with a statistically significant increase in the prices of goods that pay VAT. The increases in prices due to the minimum wage were more than offset by decreases associated with the VAT, resulting in average prices that were lower than those that would have been observed in the absence of these policies.

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teaching

Microeconomic Analysis

Undergraduate course, Universidad del Rosario, Department of Economics, 2010

Introductory microeconomics course for political science and international relations students.

Microeconomics I

Undergraduate course, Universidad del Rosario, Department of Economics, 2017

Introductory microeconomics course for economics and finance students.

Urban Economics

Graduate course, ITAM, 2019

Urban Economics for Graduate Students