Financial fragility in a general equilibrium model: the Brazilian case

Benjamin Tabak, Daniel Cajueiro and Dimas Fazio

Annals of Finance, 2013, vol. 9, issue 3, 519-541

Abstract: This paper employs a general equilibrium approach to model the Brazilian financial system. We show that the model is able to replicate the main characteristics of the data and to predict short-term trends. We calibrate the model for the years of 2002–2006, which comprise a crisis period in Brazil’s financial system. Empirical results suggest that the financial system is improving in terms of financial stability over time. Furthermore, the model has been proven useful to model the Brazilian banking system and could be employed to evaluate the impact of changes in financial regulation on the banking system. Copyright Springer-Verlag 2013

Keywords: General equilibrium; Financial stability; Banking system; Financial regulation; Calibration; G01; G10; G15; G18; G21 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (5)

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Working Paper: Financial Fragility in a General Equilibrium Model: the Brazilian case (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:annfin:v:9:y:2013:i:3:p:519-541

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DOI: 10.1007/s10436-012-0199-9

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