We propose a multivariate dynamic intensity peaks‐over‐threshold model to capture extremes in multivariate return processes. The random occurrence of extremes is modeled by a multivariate dynamic intensity model, while temporal clustering of their size is captured by an autoregressive multiplicative error model. Applying the model to daily returns of three major stock indexes yields strong empirical support for a temporal clustering of both the occurrence and the size of extremes.

The concept of welfare has evolved to incorporate subjective elements. One key factor for development is social capital. Participation in organizations promotes a more active social life, with potential positive results on welfare. This work investigates this last association through the estimation of a bivariate ordered probit model by using the World Value Survey for Chile.

In this paper, we try to understand pesticide input decisions among Vietnamese rice producers by examining the production risk effects of pesticide use, applying both a lottery game and a more traditional production function approach. Production function estimates show that excessive pesticide use makes production riskier. This result is supported by the lottery approach, which signals that more risk averse farmers use less pesticide, implying that pesticide is a risk-increasing input.

This paper empirically analyzes the determinants of fuel choices and intensity of fuelwood use for residential heating and cooking in central-southern Chile. By using information from a sample of 2761 households in nine urban areas, we first investigate households’ choices of the main fuel used for heating by means of multinomial models. Then we examine the intensity of fuelwood use through fractional probit models. These models allow analyzing the interdependence of fuel use by households, while taking into account households’ individual heterogeneity.

We investigate whether a social information campaign aimed at reducing water use causes a spillover effect on the use of electricity. On average, water use decreased by 6 percent for the treatment group. We identify a positive spillover effect on electricity use among households that had efficient use of water before the campaign. The effect is sizeable: almost a 9 percent reduction. We argue that these results are consistent with a model of cognitive dissonance where the efficient households infer information about electricity use from the water use information.

Share contracts are the dominant remuneration system in artisanal fisheries. Introducing regulations based on collective use rights may affect the way profits are distributed. The literature on the effect of regulatory reform on factor income distribution, however, is scarce. In this paper, we look at differences in the implementation of the Extractive Artisanal Regime in Chilean hake artisanal fisheries to test its effect on share contracts. We estimated a switching regression model using census data to calculate the average treatment effect.

Lately, questionings have emerged on how public resources are managed. This work calculates the technical efficiency of municipalities in Chile, with special emphasis on the political factors that drive efficiency in the management of local resources. In particular, focus is placed on the relationship between political ideology of the local government and central government. To do this, we use a panel data of Chilean municipalities for the years 2010-2016. The methodology follows two stages. First, we estimate efficiency scores by the Data Envelopment Analysis (DEA) approach.

We present the results of a series of economic laboratory experiments designed to study the compliance behavior of polluting firms when penalties are stochastic. The experiments consist of a regulatory environment in which university students faced emission standards and an enforcement mechanism composed of audit probabilities and penalties (conditional on detection of a violation).