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Determinants of consumer credit are estimated by using information from a Credit Union located in Medellín-Colombia. To the best of our knowledge, this is the first investigation using this kind of data in Colombia. We find that life cycle-permanent income hypothesis (LC-PIH) related variables are…

This paper analyzes the determinants of interest margins in the Colombian Financial System. Based on the model by Ho and Saunders (1981), interest margins are modelled as a function of the pure spread and bank-specific institutional imperfections using quarterly data for the period 1994:IV-2005:III…

 The understanding of foreign investment flows is important for emerging market policy makers, since such flows make up a considerable part of the balance of payments, and since such flows tend to be very volatile. Sudden stops or reversals of investment flows have, indeed, played an important…

The COVID-19 pandemic led inflation in Colombia to fall below the 3.0% target, reaching its lowest level in history of 1.51% in March 2021. However, in the second quarter of 2021, inflation began to rise to the point that in March 2023 it reached its highest peak (13.3%) since 1999. What explains…

This study uses a panel-data framework to identify the determinants of the spread over US Treasuries of emerging market sovereign issues as well as of the creditworthiness of the issuers, where the latter is represented by the Institutional Investor’s creditworthiness index. We use a sample of 16…

The study presented here is a follow-up study to Rowland and Torres (2004), who used a panel data framework together with data from 16 emerging market issuers to identify the determinants of the spread and the creditworthiness. Since many new issuers of emerging market sovereign debt have emerged…

As of June 2021, DANE and Banco de la República (BR) began to jointly report on the national accounts by institutional sector (CNSI). These will henceforth be published on a quarterly basis with a lag of less than three months.

Economic observers who monitor monetary policy often compare the timing of interest rate increase or decrease cycle decisions across countries to determine which countries were ahead and which were behind in their decisions. This might be correct if the countries had identical economic performance…

Abstract One explanation for the increasing number of hectares with coca cultivation is that eradication strategies displace coca crops but fail to completely clear affected areas. In the drug policy literature, that dynamic shifting is commonly known as the balloon effect. This study integrates…

Abstract This document analyses recent developments in digital credit and payments platforms in Colombia. It explores digital financial services characteristics, and the potential risks faced by users, providers, and the central bank.

The opinions contained in this document are the sole responsibility of the authors and do not commit Banco de la República or its Board of Directors  

The Covid-19 pandemic and the policy response to mitigate its effects led to a substantial deterioration in the Central National Government’s finances. In 2020, the deficit of the CNG stood at 7.8% of the GDP, a figure that was more than three times higher than in 2019. This increase was due to the…

Article 371 of the Colombian Constitution establishes that Banco de la República (the Central Bank of Colombia) performs central banking functions and is organized as a legal entity of public law with administrative, financial, and technical autonomy, subject to its own legal framework. Likewise,…

Since: 1997

Since 1991, inflation in Colombia was reduced from 25% on average to about 6% more recently. Although this performance is in line with a long run inflation target of 3%, some analysts ask whether the Central Bank should continue disinflating. In this paper we present a dynamic stochastic general…

In this survey, economic analysts are consulted about their expectations for specific time horizons. This survey is part of a set of tools for analyzing the transmission channels of monetary policy, which allows studying the degree of anchoring of inflation expectations, with the particularity that…

Abstract We revisit an old question but with a new identification strategy, namely the difference in exchange rate effects between announced (“vocal”) and secret (“dirty”) foreign exchange intervention. Using a Regression Discontinuity Design, we exploit a rule-based intervention mechanism enacted…

Do Local Governments Engage in Strategic Property-Tax Competition? Do Local Governments Engage in Strategic Property-Tax Competition?   by Jan K. Brueckner Department of Economics and Institute of Government and Public Affairs University of Illinois at Urbana-Champaign Champaign, IL…

Banco de la República (the Central Bank of Colombia) informs citizens that it has no interference in private transactions and, therefore, no relationship with the platform that calls itself ZK Bank. Banco de la República exercises central banking functions and, in accordance with the Constitution…

Medellín seminario de economía 113

We examine the effect of single‐sex classes on the pass rates, grades, and course choices of students in a coeducational university. We randomly assign students to all‐female, all‐male, and coed classes and, therefore, get around the selection issues present in other studies on single‐sex education…

The international crisis by the end of the previous decade brought very important changes in terms of degree, size, and volatility of capital flows to emerging markets. These became a challenge for their economic authorities because the negative effects likely to affect macroeconomic variables of…

Abstract The countries of the Caribbean Basin have a tradition in coffee production since the grain entered America through this area in the 18th century. Although the region lost importance in the international coffee market in the 20th century, the crop maintains its significance in…

Given that education is closely related to other determinants of informal employment, this study models its behavior to assess its impact on informality rates, recognizing that an improvement in the educational level could positively influence productivity and the formalization of employment.

Abstract The objective of this study is to describe the main fiscal indicators of Barranquilla during the period 2000–2021, as well as explore the possible factors that could be behind the observed behavior. We compare the evolution of the main fiscal variables of the district with those…