The main motivation for prudential regulation is to increase the solvency of the banking sector. However, it is usually understood that tighter regulation also leads to more concentration and higher spreads. Thus, these prudential measures are seen as implying a trade-off between solvency and...

After a decade of structural reforms, unemployment rates have tripled in Argentina. The authors show the importance of considering re-incidence in the measurement of unemployment risk and develop a methodology to do that. The estimates for Argentina show that, though the typical unemployment...