Working Papers on Economics

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…

Colombian monthly data covering the period from 1995:01 to 2002:11 and ECM, fixed and time-varying parameters and Kalman filter techniques are used in this paper to quantify the exchange rate pass-through effects on import prices within a sample of manufactured imports. Also, whether the foreign…

In this paper I consider the following problem: there is a collection of exogenously given socially feasible sets, and for each one of them, each one of a group of individuals chooses from an individually feasible set. The fact that the product of the individually feasible sets is larger than…

Derivatives are contingent claims that complete financial markets. Their use allow agents and firms to ameliorate the impact over con-sumption, production and investment given a change in relative prices induced by an active monetary policy. In this sense, derivatives generate in some cases a…

In this paper, we modeled the Colombian long run economic growth (1925-2003) using a two- regime first order Markov switching model. We found evidence of non-linearity in the annual rate of economic growth. The results show that changes between regimes are sudden and sporadic. The Colombian…

No previous work has focused on the analysis of the regional and interregional structure and structural changes in Colombia. An initial exploration using a parsimonious approach to the measurement of interregional interaction suggested a country with limited spatial interdependency. These…

 The hypothesis that the internal public debt has played the role of shock absorber in Colombia since 1923 is modelled. 1923 was an important landmark in the history of Fiscal and monetary reforms in Colombia during the twentieth century. The econometric results offer a strong support for…

This paper develops a political economy model that provides an explanation as for why ruling Elites in oligarquic societies may rely on income redistribution to the poor (the masses) in order to prevent them from attempting a revolution. We refer to this kind of redistribution as populist…

A pseudo-panel was built to estimate the determinants of the labor participation decision of married women between 1984 and 2000. Past participation decisions, education level, labor income taxes, children between 1 and 2 years of age, and the presence of other people unemployed at home are the…

We compute both seigniorage rate and  welfare cost of inflation rate in Colombia using a  Sidrauski-type model  in which preferences are separable functions of the service flows of  non-durable goods and  money holdings.  The set of the estimated parameters imply…

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

Output Gap Estimation, Estimation Uncertainty and its Effect on Policy Rules Output Gap Estimation, Estimation Uncertainty and its Effect on Policy Rules

Financial Inefficiency and Real Business Cycle in Colombia Financial Inefficiency and Real Business Cycle in Colombia      Camilo Zea*

A Model of the Nominal and Real Exchange in Colombia A Model of the Nominal and Real Exchange in Colombia   Javier Gómez*

A nonlinear specification of demand for cash in Colombia A nonlinear specification of demand for cash in Colombia   By Luis E. Arango and Andrés González(1)