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The purpose of this paper is to discuss sheepskin effects in Colombia based on repeated cross‐section or pseudo panel data using cohorts in seven larges cities in Colombia.

A Pseudo Panel Data methodology is used as the basis for determining and testing sheepskin effects using labor market microdata in Colombia in the time period from 1996 to 2000.

Empirical evidence suggests that there are additional salary increases of 14 percent for individuals who hold a secondary degree and approximately 26 percent for holders of university degrees in Colombia.

Testing sheepskin effects based on pseudo panel data using cohorts.

The purpose of this paper is to discuss the role of Markovian transitions related to the economic convergence among countries. Thus, the paper aims to develop an overview of several classical approaches, including an analysis of fallacies exposed through the literature.

The number of modes in the distribution of the RGDPL for 100 countries in the period from 1986 to 2000 is calculated. Next, the results obtained from the relevant transition matrices are discussed and the existence of twin peaks in the distribution of income is analyzed. Finally, the adequacy of both Markovian and (time) homogeneity hypotheses in connection with the stochastic process that underlies income distribution is studied.

The results across the period 1986‐2000 show the evolution of countries into convergence clubs, instead of the existence of economic convergence.

The paper discusses two important issues on the convergence hypothesis. First, the discretization process really matters. If quartiles or quintiles are used the ergodic distribution does not show twin peaks because the process shows an equiprobabilistic ergodic (stationary) distribution in the long term. Second, the twin peaks results need a Markov (time) homogeneous chain as a model for the underlying income process, and then Chapman‐Kolmogorov's equation must be satisfied. However, the paper finds empirical evidences of failure in such an argument.

The purpose of this paper is to develop and empirically test the conditions that describe adjustment velocities to reach equilibrium under Cournot's duopoly model.

The paper uses a vector error correction (VEC) framework as the basis for determining and testing adjustment velocities using data about cellphone service in Colombia in the time period from 1995 to 2001.

Empirical evidence suggests the following: first of all, companies operating in the cellphone market behave as cournot's competitors and have constant marginal costs; secondly, cellphone companies operating in the eastern zone of Colombia are in long‐term equilibrium; and lastly, equilibrium adjustment velocities are statistically significant. As predicted by theory, in terms of welfare, the existence of equilibrium in Cournot's model implies that cellphone users in the eastern zone of Colombia enjoy a small consumer surplus.

Testing the microeconomic implications of the equilibrium dynamics of Cournot's model, using a VEC framework.