Financial Fragility of Firms in Colombia, 2000-2006: A Discriminant Analysis of a Minskyan Model

Abstract:     
Based on Foley (2003), this article sets the financial situations of firms, classifying hedges, speculatives and Ponzi. On the other hand, it applies a discriminant analysis, a multivariate technique that classify empirically based on the financial indexes. As a result, the theoretical and empirical classifications are consistent and these shows that in the growing phase of a boom, there is a high percentage of hedge firms, and in turn, arises a slight spoilage of your financial stability. Thus, that gives an empirical evidence of relevant assertions of the Financial Instability Hypothesis; prove the microeconomic segment of Foley (2003) and sets out an alternative indicator of the financial fragility.

Note: Downloadable document is in Spanish.

Number of Pages in PDF File: 42

JEL Classification: E120, E440, G010

working papers series