Autor: Eduardo Zilberman

WP073 – Macroeconomic Effects of Credit Deepening in Latin America

ABSTRACT  –  We augment a relatively standard dynamic general equilibrium model with financial frictions, in order to quantify the macroeconomic effects of the credit deepening process observed in many Latin American (LA) countries in the last decade — most notably in Brazil. In the model, a stylized banking sector intermediates credit from patient households to impatient households and firms. The key novelty of the paper, motivated by the Brazilian experience, is to model the credit constraint faced by (impatient) households as a function of future labor income. In the calibrated model, credit deepening generates only modest above-trend growth in consumption, investment, and GDP. Since Brazil has experienced one of the most intense credit deepening processes in Latin America, we argue that the quantitative effects for other LA economies are unlikely to be sizeable. Download do Paper Ano: 2014 Working-paper: WP073 Eduardo Zilberman Ler todos os Posts de Eduardo Zilberman’s Share...

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WP035 – Targenting the Poors: A Macroeconomic Analysis of Cash Transfer Programs

ABSTRACT – This paper introduces cash transfers targeting the poor in an incomplete markets model with heterogeneous agents facing idiosyncratic risk. These transfers change the degree of insurance in the economy and affect precautionary motives asymmetrically, leading the poorest households to decrease savings proportionally more than their richer counterparts. In a model economy calibrated to Brazil, once the cash transfer program is adopted, wealth inequality and social welfare increase, poverty decreases, while employment and income inequality remain about the same. Imperfect access to financial markets is important for these results, whereas whether the program is funded with lump sum or distortive taxes is not.  Download do Paper Ano: 2012 Working-paper: 035 Eduardo Zilberman Ler todos os Posts de Eduardo Zilberman’s Share...

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