This paper examines the potential impact of US monetary policy normalization on portfolio capital flows to Emerging Markets Economies (EME) explicitly taking into account the unconventional US monetary policy. We build an econometric model of the drivers of capital flows to EMEs and the results...

In this paper we discuss the several aspects involved in the determination of the cost of capital of the telecommunications industry in Brazil. The cost of capital determination for regulated industries is extremely important, both to regulators and firms, since through the pertinent rate of...

An adequate rate of return on capital yielded by the regulated firms is a central issue related to the new cost-based approach adopted by the Brazilian Telecommunication Regulatory Agency (Anatel). In this context, careful attention must be given to the Weighted Average Cost of Capital (WACC)...

The current methodology adopted by the Aneel to estimate the rate of return (cost of capital) applied in the periodic tariff revision is improved via some modifications in the following parameters: country risk, exchange rate risk and regulatory risk. We recommend the global CAPM methodology...

The owner of a petroleum exploration concession in Brazil has an investment option until the expiration date fixed by the governmental agency, which can be extended by additional cost. The value of these rights and the optimal investment timing are calculated by solving a stochastic optimal...

Petroleum exploration in Brazil is performed throughout a bidding process coordinated by the National Petroleum Agency (NPA), where the exploration and production (E&P) firms need to evaluate concessions performing financial and economic analyses routinely. Since oil is a public resource with...

This paper proposes a simple structural model to estimate the term structure of sovereign spreads and the implied default probability of a selected group of emerging countries, which accounts for more than 50% of the J. P. Morgan EMBIG index. The real exchange rate dynamics, modeled as a pure...