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Browsing by Autor "Hernán Vallejo"

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    A Characterization of the Herfindahl Hirschman Index and its use in the Horizontal Merger Guidelines
    (RELX Group (Netherlands), 2021) Hernán Vallejo
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    A GENERALIZED INDEX OF MARKET POWER
    (RELX Group (Netherlands), 2005) Hernán Vallejo
    This paper analyses two approaches to measuring market power–the commonly used Lerner index and a range of exploitation measures–. Itis argued that the Lerner index is designed to quantify market power fromthe supply side and the exploitation measures are designed to quantify marketpower from the demand side, and that the two approaches do notalways behavein a symmetric way, since they do not always have the same bounds. To sortout these potentially undesirable properties, this paper proposes a new generalindex to measure market power, which is symmetrical in the sense that it isbounded between zero and one, regardless of whether the market power comesfrom the supply or the demand side. The index proposed allowsfor the presenceof more than one firm and for the existence of conjectural variations.
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    A Model of Oligopoly
    (RELX Group (Netherlands), 2021) Hernán Vallejo
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    A Theorem of the Law of Demand
    (RELX Group (Netherlands), 2021) Hernán Vallejo
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    A Theory of Lifetime Welfare: Cycles, Trend, Span, and Policies
    (RELX Group (Netherlands), 2024) Hernán Vallejo
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    Algunos efectos y retos econnmicos de la constituciin colombiana de 1991 (Some Economic Impacts and Challenges from the Colombian Constitution of 1991)
    (RELX Group (Netherlands), 2014) Hernán Vallejo
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    An Economic Theory of Labor Discrimination
    (RELX Group (Netherlands), 2021) Hernán Vallejo
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    Comercio internacional, migración e inversión con diferenciación horizontal de productos y libre entrada y salida de firmas.
    (2010) Hernán Vallejo
    Este documento construye un modelo de carretera circular del mundo con diferenciación horizontal de producto y libre entrada y salida de firmas, para mostrar que un comercio internacional más libre aumenta el bienestar –con preferencias de variedad ideal– por medio de la explotación de economías de escala y de una mejor asignación de recursos, que todos los países participantes ganan con el comercio y que los países más pequeños tienen más que ganar del libre comercio que los países grandes. La resistencia política a la liberación del comercio, a la migración internacional y a la inversión extranjera directa también se estudian con el modelo. Finalmente, el modelo provee una microfundamentación para el uso de curvas de demanda con pendientes constantes y negativas.
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    Employment Differentiation, Minimum Wages and Firm Exit
    (RELX Group (Netherlands), 2021) Hernán Vallejo
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    Employment Differentiation, Minimum Wages, and Firm Exit
    (2025) Hernán Vallejo
    The economic literature acknowledges that labor markets can often be described by monopsonistic competition. In such a structure, employers have mar­ket power and in the long run, zero profits due to the free entry and exit of firms. This article builds a partial equilibrium model to analyze the role of min­imum wages when employment is differentiated. It shows that first-best and second-best minimum wages can increase employment and improve effi­ciency by reducing market power, at the expense of firm exit, higher concentration among employers, and less employment variety. As such, this article can provide insights into the ambiguous effect of min­imum wages on employment levels systematically found in the literature, and on the higher firm exit rates observed among new, small, and lower produc­tivity firms.
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    Essentials for the Development of a Working Paper as a Thesis in Economics
    (RELX Group (Netherlands), 2003) Hernán Vallejo
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    Inferring Agent Behavior and Economic Information, with Free Entry and Exit of Firms
    (RELX Group (Netherlands), 2011) Hernán Vallejo; Miguel Espinosa
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    Mainstream Economics in the Early 21st Century: What, How and How Far
    (RELX Group (Netherlands), 2012) Hernán Vallejo
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    Not all Giffen goods, are inferior goods
    (Elsevier BV, 2023) Hernán Vallejo
    It is well known in the economic literature that the labour supply curve can bend backwards and, therefore, that leisure can be a Giffen good. It is also known that leisure can be a normal good. This article proves that if leisure is a Giffen good, it has to be a normal good. This result also proves that, contrary to common knowledge in economics, not all Giffen goods, are inferior goods. These results could be taken into account, for example, when finding empirical evidence and designing policies on labour supply, in an era of machine learning and artificial intelligence.
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    Not all Giffen Goods, are Inferior Goods
    (RELX Group (Netherlands), 2021) Hernán Vallejo
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    Oligopsony and Minimum Wages
    (2024) Hernán Vallejo
    This article presents a model of oligopsony. It considers different conjectural variations that cover the whole range between the extreme cases of monopsony and perfect competition, such as Collusion, Threat, Cournot, Stackelberg, and Bertrand, and compares them in terms of prices, quantities, profits, markdown, price elasticity of supply and welfare. It also considers the impact of minimum wages, under the different conjectures analyzed.
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    Oligopsony and Minimum Wages
    (RELX Group (Netherlands), 2021) Hernán Vallejo
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    Regional Integration and Foreign Direct Investment: The Case of Latin America
    (RELX Group (Netherlands), 2003) Hernán Vallejo; Camila Aguilar
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    Representations and Identities for Homogeneous Technologies
    (RELX Group (Netherlands), 2008) Miguel Espinosa; Pietro Bonaldi; Hernán Vallejo
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    Representations and Identities for Homogeneous Technologies
    (De Gruyter, 2009) Miguel Espinosa; Pietro Bonaldi; Hernán Vallejo
    Using up to nine different ways to represent homogeneous technologies with decreasing returns to scale, this article presents and proves identities between those different representations of such technologies, outlining the homogeneity properties of each representation. These identities, which allow to shift from one representation of a technology to another -- and which are summarized in a matrix of identities -- can be useful since they provide a tool to obtain explicit functional forms for homogeneous technologies. They can also be useful to simplify computational procedures when different representations of a technology are needed. Finally, the article also refers explicitly to some aspects of producer theory that are often neglected or treated in a marginal way in the literature, such as the inverse supply, the non conditional cost and the inverse input demands functions.
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