The analysis of productivity performance of the Mexican Northern Border offers an interesting case study for that objective. This is because it combines mobile growth factors due to regional reallocation of economic activity and, on the other hand, the fact that factors that are considered immobile in the literature such as education, infrastructure and specialization were...
This paper examines the structure and dynamics of institutionalised flows of credit between economic sectors - with a distinct emphasis on industry - during the era of import-substitution industrialisation. Using the debate between "balanced vs. unbalanced growth" theories as prompting guide, the paper challenges conventional wisdom sustaining that the state supported...
This article studies regional gaps in education quality at the senior high school level, for the period2000-2012, in Colombia's municipalities. Municipal education quality is measured using a test calledSaber 11, applied to high school students in their last year. With the aforementioned aim in mind, a non-parametric convergence analysis is carried out, in which the geographical...
This article provides empirical evidence about the relationship between capital flows, natural resource exploitation, and de-industrialisation in the case of Colombia. To this end, we analyze if the massive increase in capital inflows during the latest commodity boom led to an additional appreciation of Colombia's real effective exchange rate, thereby aggravating Dutch disease...
This article shows that estimates of the elasticity of pass-through from exchange rate to prices reported in some of the recent literature are derived from erroneous calculations. The Board of Bank of México has been using these estimates for several years to make decisions on monetary policy.Keywords : Exchange rate pass-through in Mexico; Structural VAR-X models; Impulse...
This paper analyses the effectiveness of official interventions of the Colombian Central Bank in the foreign exchange market over the period of June 2008-December 2013. The estimation procedure suggested by Hansen (2000) is used to estimate a threshold model for the spot exchange rate that splits the data sample into two different regimes that depend on the extent of the...
This article provides empirical evidence about the relationship between capital flows, natural resource exploitation, and de-industrialisation in the case of Colombia. To this end, we analyze if the massive increase in capital inflows during the latest commodity boom led to an additional appreciation of Colombia's real effective exchange rate, thereby aggravating Dutch disease...
The history of economic recessions has shown that every deep downturn has been accompanied by disruptions in the financial sector. Paradoxically, up until the financial world crisis of 2007-2009, little attention was given to macroeconomic and financial interdependence. In this paper, a study is conducted on the relationship between financial and real business cycles for a sample...
This paper analyses the effectiveness of official interventions of the Colombian Central Bank in the foreign exchange market over the period of June 2008-December 2013. The estimation procedure suggested by Hansen (2000) is used to estimate a threshold model for the spot exchange rate that splits the data sample into two different regimes that depend on the extent of the...
This document presents a dynamic general equilibrium model with endogenous technical change. The model is used to guide an interpretation of the Colombian case for the period 1925-2012. The main conclusions are the following: the steady state technical change and economic growth rates depend upon a balance between the individual benefit for innovation and its opportunity cost...
This paper analyzes the relationship between monetary policy decisions and financial stability conditions, considering the asset prices as the key variable. The econometric estimates show that the Banco de la República has not had any response between 1996 and 2012 to the variables associated with financial stability, such as the gap in asset prices and credit. In this sense, we...
The purpose of this study is to compare the effect of monetary policy on economic activity in the five longest-operating Latin American countries operating the inflation targeting scheme (Chile, Brazil, Colombia, Peru and Mexico). A structural VAR model is estimated for each country using similar variables, finding that the impacts are significantly higher in Mexico and Peru...
After the international crisis, it was suggested that inflation targets should be raised in order to allow more space to monetary policies during contractionary product times. The present study proposes that the limit to raise the inflation target should be threshold inflation, defined as the rate above which price variability is detrimental to economic growth. Bayesian methods...
Quality of employment has traditionally been analyzed using synthetic indicators. However, this analysis does not incorporate a theoretical framework that supports weighting variables within such indicators. This study seeks to fill the existing gap by using the Consumer Theory and equivalence scales, in an attempt to measure quality of employment. According to the Quality of...
This document presents a dynamic general equilibrium model with endogenous technical change. The model is used to guide an interpretation of the Colombian case for the period 1925-2012. The main conclusions are the following: the steady state technical change and economic growth rates depend upon a balance between the individual benefit for innovation and its opportunity cost...
Quality of employment has traditionally been analyzed using synthetic indicators. However, this analysis does not incorporate a theoretical framework that supports weighting variables within such indicators. This study seeks to fill the existing gap by using the Consumer Theory and equivalence scales, in an attempt to measure quality of employment. According to the Quality of...