Handbook by Wendy Saavedra

On behalf of the Universidad del Pacífico, I am pleased to welcome you to the annual meeting of the Latin American and Caribbean Economic Association (LACEA) and the Latin American Meeting of the Econometric Society (LAMES) 2012. This year is very special for our university community given that we are celebrating our 50th year of institutional life. Founded in 1962 by a group of business leaders, whose vision was to create a modern, high-quality academic institution oriented towards applied economics and management, the main mission of the Universidad del Pacífico is to educate citizens, to develop their professional skills, and to ensure that they have the ethical values required to manage the country’s economy and enterprises efficiently and responsibly. Thanks to the efforts of those who managed the University during the first decades of its existence, public opinion perceives us as one of the best institutions of higher education in Peru, and the clear leader in our fields of concentration. This reputation has been achieved by our alumni, many of whom work at the top of their fields in the public and private sectors of Peru and around the world.

WELCOME

At the Universidad del Pacífico we have no intention of merely resting on past achievements. On the contrary, we continue to nourish a spirit of modernization and permanent innovation. We try to transfer this spirit in every academic meeting we convene. I am convinced that the conferences that we will hear over the next three days will broaden our perspectives and understanding of what is happening on the current global economic scene, and that the distinguished economists convened here at the UP will provide stimulating proposals for the years ahead. Thank you all for participating in this event, and for sharing in our Anniversary celebration.

Dr. Felipe Portocarrero Suárez President

WELCOME ORGANIZING COMMITTEE

It is our great pleasure to welcome you to the XVII Annual Meeting of the Latin American and Caribbean Economic Association and to the XXVII Latin American Meeting of the Econometric Society. It is the first time that the Joint Meetings are held in Lima, Peru and the Universidad del Pacifico is proud to be the organizer of the most important gathering of economic scholars in the region.

Eduardo Morón Conference Chair

Roberto Chang LACEA Program Chair

César Martinelli LAMES Program Chair

In this handbook you will find the academic program of our joint meeting and information about our sponsors and the social events that we have organized. Thanks to the help of the members of our Program Committees we have put together an extraordinary set of conferences and presentations for these three days. LACEA-LAMES 2012 has been a collaborative effort of many individuals and organizations. We want to express our deepest gratitude to our permanent sponsors and the new sponsors for their generosity. Our thanks also go to Arlette Beltrán, Dean of the Faculty of Economics and the engine behind this effort; thanks to Daniel Gamarra, administrative assistant of the Faculty for always being ready to answer yet another email asking for his help. Thanks to the administrative staff at Universidad del Pacifico including the IT and Marketing teams; to the Stimulus team who have helped us prepare every tiny detail of the conference as if it was the most important one. We are also grateful with the members of our Program Committee that had to read almost 1000 submitted papers. We also want to thank Andrea Repetto and her organizing team at UAI for sharing share with us her secret recipe on how to organize a wonderful conference. Finally, thanks to all of you, the participants, for being here with us sharing the joy of learning, discussing, meeting with new and old friends, and get inspired. We want you to enjoy the conference and have a wonderful stay in Lima, Peru.

GENERAL INFORMATION............................................................ 11 ORGANIZING COMMITTEE......................................................... 21 PROGRAM COMMITTEES............................................................. 23 UNIVERSIDAD DEL PACÍFICO, FACULTY OF ECONOMICS.......................................................... 27 SPONSORS................................................................................. 28 LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION...................................... 31 LATIN AMERICAN MEETINGS OF THE ECONOMETRIC SOCIETY............................................... 34 CONFERENCE SCHEDULE........................................................... 38 CONFERENCE PROGRAM - THURSDAY, NOVEMBER 1................. 39 CONFERENCE PROGRAM - FRIDAY, NOVEMBER 2....................... 54

INDEX

CONFERENCE PROGRAM - SATURDAY, NOVEMBER 3.................. 76 SPEAKERS ALPHABETICAL INDEX................................................. 98 NOTES........................................................................................ 114 CAMPUS MAP............................................................................. 122

VENUE LACEA - LAMES 2012 will be held at the Universidad del Pacifico (UP): UP Campus Salaverry Av. 2020 Jesús María - Lima, Peru Event’s main entrance (H Building): Jr. Sánchez Cerro 2121, Jesús María, Lima, Peru Telephone: (511) 219 0100

INFORMATION AND REGISTRATION DESK

GENERAL INFORMATION

The Information and Registration desks are located at the Lobby of the H Building, on the ground floor. Will be open throughout the conference from 08:00 to 19:00 hours. If you need assistance of any kind, please visit us there.

ACCESS TO THE CAMPUS AND CONFERENCE ROOMS Conference participants are required to wear and show their badges at all times to have access to the conference rooms, computer center, lunch and coffee break areas, and social events. Badges will be supplied upon registration at the venue.

Category Badge

Color

Access to

Organizing Committee

All main facility event areas and social activities

Speaker

All main facility event areas and social activities

Participant

All main facility event areas and social activities

Press

All main facility event areas, with prior coordination with STAFF

Staff

All main facility event areas and social activities

Supplier

All main facility event areas and social activities

Assembly Crew

All main facility event areas and social activities for authorized suppliers’ personnel during set-up/dismantling

PARKING AREA Parking for Participants available in the underground parking lot of H Building at the venue. Valet Parking available.

SHUTTLE BUSES ROUTES

HOTELS

Route 1

Hotel Atton / Los Tallanes Hotel & Suites / Novotel / Swissotel Lima

Route 2

Hotel Libertador / Country Club Lima Hotel

Route 3

Hotel Plaza del Bosque / Sonesta Hotel El Olivar / Roosevelt Hotel & Suites

Route 4

Radisson Hotel San Isidro / Meliรก Lima

Route 5

The Westin Lima Hotel & Convention Center

Date

Time

Route

Itinerary

Nov 1, 2, 3