Coelho, Christiano Arrigoni; Pinto, Julio Cesar Costa - Associação dos Centros de Pós-Graduação em … - 2004
This paper uses numerical methods to solve bank's cost minimization problem. Following Clouse and Dow (2002), we model bank's behavior using stochastic dynamic programming. We take account of institutional aspects of Brazilian regime that influence the bank's choice of reserves in the end of the...