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Inflation Targeting in Colombia, 2002-2012

After decades using monetary aggregates as the main instrument of monetary policy and having different varieties of crawling peg exchange rate regimes, Colombia adopted a full-fledged inflation-targeting (IT) regime in 1999, with inflation as the nominal anchor, a floating exchange rate, and the...

Improving the Measurement of Core Inflation in Colombia Using Asymmetric Trimmed Means

The study evaluates the virtues of asymmetric trimmed means as efficient estimators of inflation for Colombia, an economy with high and variable inflation rates. Results suggest that the proposed indicators are more efficient than alternative indexes and are particularly suited for environments...

Illegal Mining and Human Capital Accumulation: Evidence from the Colombian Gold Rush


Las opiniones contenidas en el presente documento son responsabilidad exclusiva del autor y no comprometen al Banco de la República ni a su Junta Directiva.




Health Status and Labor Force Participation: Evidence for Urban Low and Middle Income Individuals in Colombia

This paper uses the first wave of the Colombian Longitudinal Survey (ELCA) to analyze the relationship between individual health status and labor force participation. The empirical modeling strategy accounts for the presence of potential endogeneity between these two variables.

Foreign and Domestic Firms in Colombia: How Do They Differ?

This paper studies foreign and domestic firms in Colombia and, in particular, whether these firms behave differently.   The study uses a dataset containing the 2003 balance sheets and income statements for some 7,001 firms.  The dataset was obtained from the Superintendencia de Sociedades.

Firm Productivity and Cities: The Case of Colombia


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.


Failing and Merging as Competing Alternatives during Times of Financial Distress: Evidence from the Colombian Financial Crisis

This paper studies the determinants of individual bank failures and M&A processes in Colombia during the financial crisis of the late 1990s. Using bank-specific data we estimate competing risk hazards models and find that while profitability and capitalization are the most important...

Explaining time to bank failure in Colombia during the financial crisis of the late 1990s


Estimating Credibility in Colombia's Exchange Rate Target Zone

Estimating credibility in Colombia's exchange rate target zone Estimating credibility in Colombia´s exchange rate target zone

Efficiency of Public Education in a Multiproduct Context: The Case of Colombian Municipalities

This paper estimates the local efficiency of the public provision of education in Colombia between 2007 and 2014. The empirical analysis relies on a multiproduct function that assesses public performance considering two types of education products: quality and enrolment. Results for Colombian...

Dutch Disease and Banana Exports in the Colombian Caribbean, 1910-1950

Dutch disease and banana exports in the Dutch disease and banana exports in the Colombian caribbean, 1910 - 1950

     Resumen In 1994, the seven departaments of the Colombian Caribbean had a population of about 7.2 million, representing 21% of the conuntry's total....

Downward Wage Rigidities and Other Firms’ Responses to an Economic Slowdown: Evidence from a Survey of Colombian Firms

This paper uses a wage setting survey of 1,305 Colombian firms to explore the nature and sources of wage rigidities. This is the first study of a non-European emerging economy that uses evidence from a survey of firms to analyse this topic. The survey was carried out during the first half of...

Disinflation Costs Under Inflation Targeting in Small Open Economy

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...

Credit Pro-cyclicality and Bank Balance Sheet in Colombia

The recent financial crisis has renewed the interest of economists, both at the theoretical and empirical level, in developing a better understanding of credit and its mechanisms. A rapidly growing strand of the literature views banks as facing funding restrictions that condition their borrowing...

Commodity Booms, Dutch Disease, and Real Business Cycles in a Small Open Economy: The Case of Coffee in Colombia

Este documento propone un modelo multisectorial de crecimiento, dinámico y estocástico que integra la literatura de ciclo económico real con la de economías con sectores en bonanza y enfermedad holandesa para analizar fluctuaciones, asignación de recursos y los cambios en precios relativos en...

Colombian liberalization and integration to world trade markets: Much ado about nothing


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



Bank Lending, Risk Taking, and the Transmission of Monetary Policy: New Evidence for Colombia

We study the  existence of a monetary policy transmission mechanism through banks in Colombia, using monthly banks’ balance sheet data for the period 1996:4 – 2012:12. We obtain results which are consistent with the basic postulates of the bank lending channel (and the risk-taking channel)...

Bank Lending Channel of Transmission of Monetary Policy: Does the Financial Structure of Banks Matter?

This paper tests the importance of the financial structure of banks in the bank lending channel of monetary policy transmission in Colombia, using an unbalanced panel of 51 banks for the period of 1996:4-2014:8. We find that an increase in the interbank rate (proxy of the intervention rate) has...

Bank Lending Channel of Monetary Policy: Evidence for Colombia, Using a Firms´ Panel

In this paper we find empirical evidence of bank lending channel for Colombia, using a balanced panel data of about four thousand non-financial firms. We find that increases in the interest rate, proxiing for the monetary policy instrument, lead to a reduction in the proportion of bank loans,...

Asymmetric Effects of Terms of Trade Shocks on Tradable and Non-tradable Investment Rates: The Colombian Case


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.