JEL classification: C31 D6 O13 Q56 The measurement of natural capital and its management during the economic development process are important aspects of the capital approach to sustainable development. However, the assessment of social welfare in terms of genuine savings (or changes in total wealth per capita) is arguably too limited. This paper tries to make a case for the incorporation of su...

Maintaining (Locus of) Control? Assessing the Impact of Locus of Control on Education Decisions and Wages This paper demonstrates that locus of control, i.e. whether individuals believe that reinforcement in life comes from their own actions instead of being determined by luck or destiny, is an important predictor of the decision to obtain higher education. Furthermore, the authors find that pr...

This work was partially supported by MINECO/FEDER RTI2018-095390-B-C31 project of the Spanish government.

Maintaining (Locus of) Control? Assessing the Impact of Locus of Control on Education Decisions and Wages This paper demonstrates that locus of control, i.e. whether individuals believe that reinforcement in life comes from their own actions instead of being determined by luck or destiny, is an important predictor of the decision to obtain higher education. Furthermore, the authors find that pr...

There are two divergent perspectives on the impact of subcontracting on firms in the informal sector. According to the benign view, formal sector firms prefer linkages with relatively modern firms in the informal sector, and subcontracting enables capital accumulation and technological improvement in the latter. According to the exploitation view, formal sector firms extract surplus from stagna...

Medical Technology and the Production of Health Care This paper investigates the factors that determine differences across OECD countries in health outcomes, using data on life expectancy at age 65, over the period 1960 to 2007. We estimate a production function where life expectancy depends on health and social spending, lifestyle variables, and medical innovation. Our first set of regressions...

There are two divergent perspectives on the impact of subcontracting on firms in the informal sector. According to the benign view, formal sector firms prefer linkages with relatively modern firms in the informal sector, and subcontracting enables capital accumulation and technological improvement in the latter. According to the exploitation view, formal sector firms extract surplus from stagna...

We develop an asymptotic theory for static discrete games (“markets”) with a large number of players, and propose a novel approach to inference based on stochastic expansions around a “competitive” limit of the finite-player game. We show that in the limit, players’ equilibrium actions in a given market can be represented as a mixture of i.i.d. random variables, where for common specifications ...

Family Structure and Female Labour Supply in Mexico City This paper investigates labour supply of married women in Mexico City. A static neoclassical structural mode is used. We assume that each woman chooses her labour supply and corresponding income so that her utility is maximized, conditional upon her husband ’s labour supply and earnings. We use a direct translog specification, and include...

Tobacco and Alcohol: Complements or Substitutes? A Structural Model Approach The question of whether two drugs – namely alcohol and tobacco – are used as complements or substitutes is of crucial interest if side-effects of anti-smoking policies are considered. Numerous papers have empirically addressed this issue by estimating demand systems for alcohol and tobacco and subsequently calculating ...