Previous research has consistently demonstrated a positive relation between firm size and skill premium. We decompose this result by type of skilled worker using data from Chilean firms and find that returns in skill premium to size are an order of magnitude larger for owners and managers...

In this paper, we study the macroeconomic effects of banking capital requirements. We provide a theoretical explanation for why decreasing capital requirements may lead to lower average leverage ratio among banks. This counterintuitive result is an outcome of the general equilibrium effects on...

In this paper we analyze the optimal capital requirement in a model of banks with heterogeneous investment risks and asymmetric information. Asymmetric information prevents depositors from charging an actuarially-fair interest rate based on banking risk, and leads to cross-subsidization across...

We construct a framework of firm dynamics to evaluate the impact of the enforcement of contracts between final goods producers and their intermediate goods suppliers on firm life-cycle growth, technology accumulation and aggre-gate productivity. We build upon the tractable contracts model of...

In this paper we present a general equilibrium model where heterogeneous agents endogenously choose whether to become workers, consumers or entrepreneurs in order to analyze how limits on the leverage of banks affect real output. In our model tighter limits on the leverage of banks cause an...

Spanish Abstract: En 1999 Colombia sufrió la peor crisis económica desde que se tienen series de crecimiento. El detonante principal fue una reversión en los flujos de capital, pero la crisis fue agravada por desbalances macroeconómicos y fricciones financieras. En un principio el Banco de...

Excessive credit growth and high asset prices increase systemic risks. Because, in equilibrium, these two variables are jointly determined the analysis of systemic risk and the cost-benefit analysis of macroprudential regulation require a specific framework consistent with the existing empirical...