Recent literature has focused on the study of systemic risk in complex networks. It is clear now, after the crisis of 2008, that the aggregate behavior of the interaction among agents is not straightforward and it is very difficult to predict. Contributing to this debate, this paper shows that...

The aim of this paper is to analyze the impact of the Brazilian Cooperative Credit System (CCS) in the macroeconomic efficiency of the National Financial System (NFS), meant here as the capacity in supplying cheap financial services in a uniform way. Two aspects were evaluated: the participation...

This paper compares the forecast precision of the Functional Signal plus Noise (FSN), the Dynamic Nelson-Siegel (DL), and a random walk model. The empirical results suggest that both outperform the random walk at short horizons (one-month) and that the the FSN model outperforms the DL at the...

This article examines the relationship between the level of regulation and transparency of financial institutions from 37 countries and the impacts of the subprime crisis on the stock market, through a regulation and transparency index. Furthermore, with the objective of detecting reasons for...

This paper examines the relation between the degree of firms’ financial constraint and the observed rise in the cost of bank financing during the global financial crisis of 2008. It introduces a new measure of financial constraint: the lending rate paid by each firm on working capital loans....

In the context of the implementation of the Basel II accord, this paper analyzes the cyclical behavior of Brazilian bank capital under the current regulation. We use an unbalanced panel data of banks operating in Brazil between 2003 and 2008 to estimate an equation of the bank economic capital....

In this work we compare the interest rate forecasting performance using a broad class of linear models. The models are estimated through a MCMC procedure with data from the US and Brazilian markets. We show that a simple parametric specification has the best predictive power, but it does not...

In spite of early skepticism on the merits of floating exchange rate regimes in emerging markets, 8 of the 25 largest countries in this group have now had a floating exchange rate regime for more than a decade. Using parsimonious VAR specifications covering the period of floating exchange rates,...

This paper aims at investigating the structural relation between patterns of services consumption and income. We focus on how patterns of services consumption adjust to different levels of income by using the perspective of social expansion as a narrative approach for the Brazilian case in the...

This article for the first time uses Brazilian trade data to draw conclusions about the invoice currency choice—both in general and as it pertains to the Brazilian real (BRL). We find that the Brazil-Argentina policy of providing payment orders associated to an exchange transaction between...