Colombia

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Why No Hyperinflation in Colombia? On the Determinants of Stable Economic Policies

Imagine a country whose inflation rate has recently surpassed 300% a year, and during some months even surpassed the 50% level that was estabilished as a benchmark for the definition of Phillip Cagan's classic study on the subject. This rapid inflation led to a devaluation of the local currency...

Why Justice is Unresponsive to Crime: The Case of Cocaine in Colombia

Why justice is unresponsive to crime: Why justice is un responsive to crime: The case of cocine in Colombia


Wage-setting Decisions on Newly Hired Employees: Survey Evidence from Colombian Firms

This paper uses a survey on wage formation that was applied to 1,305 Colombian firms to study wage-setting decisions with respect to newly hired employees. The Colombian case is interesting, since the country’s labour market performance, especially its unemployment rate and level of informality...

Wage Adjustment Practices and the Link between Price and Wages: Survey Evidence from Colombian Firms

The aim of this paper is to explore firms wage adjustment practices in the Colombian formal labor market; specifically, the timing and frequency of wage increases, as well as the link between wage and price changes. To this end, we use an ad hoc survey of 1,305 small, medium and large firms...

Urban Planning in Latin America: The Case of Valledupar (Colombia)

The series Cuadernos de Historia Económica is a publication of Banco de la República in Cartagena. The opinions contained in this document are the sole responsibility of the author and do not commit Banco de la República or its Board of Directors....

Understanding Comsumption in Colombia

One of the principal issues of Colombian macroeconomic policy in the 1990s has been the deterioration of private savings (Figure 1). The decline in the private saving rate was usually related to consumers real expenditure, which grew by an average of 3.9% in the period 1991-1993, compared to 1.9...

Too Late but Profitable: Railroads in Colombia during 1920-1950

During the 1920s, the Colombian economy experienced the highest rate of growth in its history. The economic reforms of 1923 (the central bank, gold standard, banking legislation, fiscal reorganization), the coffee boom, and the unprecedented influx of foreign capital were the driving forces...

The Rise in Female POarticipation in Colombia: Fertility, marital status or education?

Colombia has experienced a secular increase in the labor participation of urban women, going from nearly 47% in 1984 to 65% in 2006. We decompose the evolution of participation into changes in the composition of the population and changes in the participation rates by groups (defined according...

The Rise and Perpetuation of a Moderate Inflation, Colombia 1970-1991

Colombian inflationary experience is explained using a theoretical model that stresses two elements: the effect of shocks and the type of policy designed to respond to them. The empirical investigation uses the event-study methodology and finds that the model successfully accounts for the main...

The macroprudential policy framework in Colombia

Macroprudential policy in Colombia is described along with a discussion of the main challenges faced by the authorities in implementing it and a review of episodes in which macroprudential measures were taken. An overview and some estimates of their effectiveness in preventing the buildup of...

The International Cycle and Colombian Monetary Policy

The objective of this paper is to analyze how international cycles affect the real GDP cycle and so monetary policy decisions in Colombia. We estimate that cycles in world GDP, export prices and capital inflows are strongly associated with the Colombian business cycle both on impact and even...

The Impact of Transportation Infrastructure on the Colombian Economy

The Impact of Transportation Infrastructure on the Colombian Economy 1905-1990: An Historical and Econometric Approach. The Impact of Transportation Infrastructure on the Colombian
Economy 1905-1990: An Historical and Econometric Approach


The Great Depression in Colombia: A Stimulus to Industrialization, 1930-1953

This paper analyzes the role of the Great Depression and protectionism in the Colombian industrialization of the early 1930s as well as the role of other determinants in the rapid industrialization that took place during the period 1934-1953. We conclude that the market pushed industrialization...

The Fall in Colombian Savings During the 1990s. Theory and Evidence

This After 1991 Colombia witnessed a sharp fall in the national savings rate (see figure 1.1), and in particular that of the private sector. Two hypotheses have been advanced for explaining this behavior. The first one stresses consumption smoothing within the Perrnanent Income Hypothesis...

The Demographic Transition in Colombia: Theory and Evidence

The demographic transition from high to low mortality and fertility rates was one of the most important structural changes during the twentieth Century in most Latin American economies. This paper uses a simple economic framework based on Galor and Weil (2000) for understanding the main forces...

The Competing Risks of Acquiring and Being Acquired: Evidence from Colombia´s Financial Sector

This paper studies the determinants of the probability of participating in a process of merging or acquisition for financial institutions in Colombia. We use survival analysis techniques and competing risks models to estimate the probability of participating in such processes as an acquiring or...

The Changing Role of the Public Sector: The Colombian Case

SeveralObservers of Latin America have underscored the notion that an emerging "consensus" regarding the role of the State in the economy surfaced during the 1980's (v.g World Bank, 1993; Williamson, 1993). Starting from an emphasis on issues regarding stabilization, there are three main and...

Testing the Short-And-Long-Run Exchange Rate Effects on Trade Balance: The Case of Colombia

This paper examines the role of exchange rates in determining the short-and-long-run trade balance behavior for Colombia. Conventional wisdom says that a nominal devaluation improves the trade balance. This conjecture is rooted in the Bickerdike- Robinson-Metzler (BRM) and Marshall-Lerner (ML)...

Testing the Law of One Price in Retail Banking: An Analysis for Colombia Using a Pair-wise Approach

We apply a pair-wise approach to test the law of one price for deposit (lending) rates in Colombia. We find that when banks are of different size deposit rates adjust quickly, suggesting a competitive environment. By contrast, lending rates adjust rapidly when banks are of similar size,...

Testing for Bubbles in Housing Markets: New Results Using a New Method

In the context of financial crises influenced by the development and burst of housing price bubbles, the detection of exuberant behaviors in the financial market and the implementation of early warning diagnosis tests are of vital importance. This paper applies the new method developed by...

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