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In this paper, we develop a daily-frequency measure of economic and policy uncertainty for Chile, employing information obtained from Twitter accounts using web scraping techniques and following closely the methodology proposed by Baker et al. (2016). Our proposed measure, called DEPUC, aims to capture the level of general disagreement -a proxy for economic and policy uncertainty-in topics such as the economy, economic policies, uncertainty about particular events, and Chile's conjuncture situation. The index, available from 2012 onwards, shows significant hikes that coincide with several local and international episodes that provoked extraordinary levels of uncertainty in Chile, especially after the events around the civil protests in mid-October 2019 and the start of the COVID-19 pandemic in mid-March 2020. An empirical exercise reveals that the proposed measure is a significant determinant of the nominal exchange rate dynamics, especially when this variable's magnitude is high and a week after the shock occurs. On the contrary, when the exchange rate is low, the impact of uncertainty on this variable is quantitatively smaller for any forecasting horizon. These features, and others discussed in the paper, highlight the usefulness of the proposed metric as an additional indicator that policymakers can incorporate into their monitoring toolkit. [ABSTRACT FROM AUTHOR]

We elaborate an Environmentally Extended Social Accounting Matrix for the Bío Bío Region. Initially, we apply the Cross Entropy method for updating a Social Accounting Matrix of this region from 1996 to 2006. This matrix provides the basis for a discussion of multipliers, which aims to identify the productive sectors of the region that would generate the most beneficial impacts on production, equity, poverty, and environmental pollution. The paper results are used to assess the priority sectors selected by the Bio-Bio's Productive Development Agency. [ABSTRACT FROM AUTHOR]

In this paper we analyze intergenerational income and schooling mobility during the 1996-2006 decade in Chile. Using the countries most extended household panel survey, we overcome some of the limitations of the previous Chilean studies by using observed income data for both parents and children, as opposed to observed income data only for children and income data that is generated for parents from the information given by their children retrospectively. Following the recent literature, we control our estimates for time-series variation (Lee and Solon, 2009). Our results show high intergenerational income elasticities in comparison to other developing countries, and these values are higher for sons than for daughters. The same results hold for educational mobility. Trends analysis show that the transmission of economic status have remained constant during the last years in Chile, while educational mobility has increased. [ABSTRACT FROM AUTHOR]

There is substantial evidence suggesting that central banks in open economies react to exchange rate fluctuations, in addition to expected inflation and output. In some developing countries this reaction is comparatively larger and it is nonlinear . In an estimated structural macromodel for Chile, this paper assesses the advantages and potential costs of adopting such a reaction function. We conclude that, in the face of most of the external shocks, a policy rule that responds to exchange rate misalignments smooths inflation and output variability, while marginally increasing interest rate fluctuations. On the other hand, for some domestic innovations such a rule performs poorly. When all the shocks are considered at the same time, this rule generates important welfare gains. Finally, when the volatility of external shocks rises, increasing the response to exchange rate misalignments brings welfare improvements. In fact, a more aggressive response to the exchange rate offsets the impact that greater external volatility has on output and inflation, at the cost of inducing higher interest rate fluctuations. In this way, one can interpret the nonlinear reaction to the exchange rate as an optimal response to a more volatile external environment. [ABSTRACT FROM AUTHOR]

This paper investigates the structure of tariffs in civil aviation in Chile and the potential cross-subsidies that it generates. We estimate the cross-subsidies that currently exist in this transport networks and find that the current tariff structure generates a number of cross subsidies between airports. In particular, the airports of La Serena, Punta Arenas and Easter Island receive a cross subsidy from the rest of the network. We suggest that it may be beneficial to impose that airports in Chile must fund all their incremental costs. The intuition for this result, which follows from an old idea presented by Adam Smith, Coase and Vickrey, among others, is that the self-financing of airports, or at least their incremental costs, can be an effective mechanism to prevent over investment in infrastructure. In the light of this discussion and the results found in this study it would be advisable to review the structure of Aeronautical Tariffs in Chile. [ABSTRACT FROM AUTHOR]