In this paper we analyze the role of trade shocks in shaping aggregate fluctuations in Venezuela from 1950 to 1995. To this end a stochastic general equilibrium model of a small open economy whose main productive activity rests in the exports of a single basic product is specified. Shocks to the terms of trade which are directly associated to oil price changes are modelled as a foreign transfer...

Recently the support of biofuel production has been a politically sensitive topic. Politicians have pushed for support for fuel ethanol production as an environmentally friendly alternative to imported oil, as well as a way to boost farm profits and improve rural livelihoods. Several government policies actively promote ethanol production via tax incentives and mandates, and these policies are ...