THIS PAPER ANALYZES THE STOCK-MARKET RESPONSE TO MONETARY POLICY DECISIONS MADE BY THE CENTRAL BANK OF CHILE. WE USE A METHODOLOGY DESIGNED FOR THE STUDY OF LOW FREQUENCY EVENTS AND MONTHLY DATA FROM SEPTEMBER 2001 TO DECEMBER 2013 TO ESTIMATE THE EFFECT OF ANTICIPATED AND UNANTICIPATED CHANGES IN THE CHILEAN MONETARY POLICY INTEREST RATE ON STOCK RETURNS. IN CONTRAST TO THE RESEARCH FINDINGS IN THE LITERATURE FOR THE U.S., WE FIND NO EVIDENCE THAT MONETARY SURPRISES AFFECT CHILEAN STOCK RETURNS.

THIS PAPER EXAMINES RELATIONSHIPS BETWEEN CROP INSURANCE AND INPUT TECHNOLOGY DECISIONS AMONG CHILEAN WHEAT FARMERS. USING NATIONWIDE FARM-LEVEL DATA, A BIVARIATE PROBIT MODEL IS ESTIMATED. WE INVESTIGATE THE EXTENT TO WHICH THE ADOPTION OF PRODUCTION INPUT TECHNOLOGIES IS ASSOCIATED WITH FARMERS? PARTICIPATION IN THE INSURANCE PROGRAM. WE FIND THAT RELATIONSHIPS BETWEEN INSURANCE AND TECHNOLOGY DECISIONS ARE SIGNIFICANT ONLY FOR FAMILY FARMERS. IN PARTICULAR, THERE IS A NEGATIVE RELATIONSHIP BETWEEN PARTICIPATION IN THE INSURANCE PROGRAM AND THE ADOPTION OF MODERN IRRIGATION. INTERPRETATIONS BASED ON THE ROLE OF INPUT TECHNOLOGIES ON INSURANCE ADOPTION AND ADVERSE SELECTION BEHAVIOURS ARE DISCUSSED.