World Bank Policy Research Working Paper 3515, February 2005The Policy Research Working Paper Series disseminates the findings of work in progress to encourage theexchange of ideas about development issues. An objective of the series is to get the findings out quickly, evenif the presentations are less than fully polished. The papers carry the names of the authors and should becited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those ofthe authors. They do not necessarily represent the view of the World Bank, its Executive Directors, or thecountries they represent. Policy Research Working Papers are available online at http://econ.worldbank.org.* Contact author. Departamento de Análisis Económico Aplicado, Universidad de Las Palmas deGran Canaria, Edificio de Ciencias Empresariales, Campus de Tafira, 35017 Las Palmas de GranCanaria. E-mail: mmgonzalez@daea.ulpgc.es.We are grateful to Antonio Álvarez, Javier Campos, Antonio Estache, Andrés Gómez-Lobo,Rafael Myro, Luis Orea, Sergio Perelman and Ana Rodríguez for useful discussions,comments and suggestions. We are also grateful to the BBVA for partial financing of thisresearch activity.
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