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This paper studies the productive structure of Puerto Rico after the elimination of Section 936 of the US Internal Revenue Code. To examine the productive structure, input-output (I-O) and network analysis techniques were used, as well as the 2007 and 2012 I-O matrices for Puerto Rico. It was possible to illustrate the significant relations in the structure. Through Density, it was found that transactions experienced a minimal increase. In addition, it was found that manufacturing had a significant Outdegree measure but minimal Indegree and PageRank measures. Besides, it was found that the new construction, municipal government, arts, and sports spectator’s sectors had high PageRank measures. It is recommended that an import substitution policy be established in the industries that make up the manufacturing sector. Diversifying the core components of the productive structure is also recommended. [ABSTRACT FROM AUTHOR]

Systemic risk has certain properties that make it behave as a complex system, one of which is its nonlinearity. The objective of this paper is to empirically address the systemic risk-taking channel of monetary policy from this perspective using the U.S. case and the TVPVAR model with Structural Factor Augmented (SFA-TVP-VAR). In order to obtain robust results, I estimate this model with two different metrics of the monetary policy stance, with different parameters and priors in each case. Considering the remaining system variables as latent variables, I document evidence of a complex channel: I find that the relationship between monetary policy stance and systemic risk-taking is non-linear and adaptive to economic conditions. Specifically, the posterior estimation shows that the monetary policy maintains an inverse relationship with systemic risk-taking in the long run, indicating that a loose stance increases systemic risk; however, in the short run, in earlier periods and during a financial crisis, a restrictive shock of monetary policy, instead of reducing systemic risk-taking, increases it. [ABSTRACT FROM AUTHOR]

This paper aims to simulate total factor productivity, following the original proposal made by Cobb and Douglas (1928). Estimates with annual frequency are computed for the United States during two periods, i.e. 1899-1992 and 1933-2019. In the case of Mexico, estimates are computed for the 1993-2015 period. An income distribution in favor of capital in recent decades is found both for the United States and México. Capital share has grown in the United States from 25% in 1899-1922 to 89% in 1993-2019, while for Mexico it has been 82% for 1993-2015. Functional income distribution requires close monitoring. [ABSTRACT FROM AUTHOR]