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Propuesta metodológica para el cálculo del riesgo sistémico financiero en estudios de Historia Económica: Aplicación para el caso de la banca libre en Antioquia, 1888
[A methodology for assessing financial systemic risk in economic history studies: An Application for free banking in Antioquia, 1888]


  • Mejía Cubillos, Javier


This paper proposes a methodology to calculate the systemic risk in historical research, understanding that the characteristics of non modern financial systems and the availability of information do not enable the use of recent techniques of measuring financial risk. I propose a method of simple application and scarce information requirements, using the degree of leverage as an approximation of the individual risk, and the network theory to determine the allocation of individual risks throughout the system. The methodology is especially useful for studying the banking systems in early corporatizing periods. After been exposed the methodology, which takes as its central axis the shareholders, and the property as base linkages between institutions, it is mentioned its strengths and weaknesses; being, finally, tested in an application for the free banking experience in Antioquia.

Suggested Citation

  • Mejía Cubillos, Javier, 2012. "Propuesta metodológica para el cálculo del riesgo sistémico financiero en estudios de Historia Económica: Aplicación para el caso de la banca libre en Antioquia, 1888
    [A methodology for assessing f
    ," MPRA Paper 35460, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:35460

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    References listed on IDEAS

    1. Huang, Xin & Zhou, Hao & Zhu, Haibin, 2009. "A framework for assessing the systemic risk of major financial institutions," Journal of Banking & Finance, Elsevier, vol. 33(11), pages 2036-2049, November.
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    5. Ben S. Bernanke & Jean Boivin & Piotr Eliasz, 2005. "Measuring the Effects of Monetary Policy: A Factor-Augmented Vector Autoregressive (FAVAR) Approach," The Quarterly Journal of Economics, Oxford University Press, vol. 120(1), pages 387-422.
    6. Michael D. Bordo & Michael J. Dueker & David C. Wheelock, 2002. "Aggregate Price Shocks and Financial Instability: A Historical Analysis," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 521-538, October.
    7. Miguel Urrutia, 2007. "Precios y Salarios Urbanos en el Siglo XIX," DOCUMENTOS CEDE 004381, UNIVERSIDAD DE LOS ANDES-CEDE.
    8. Adrian, Tobias & Shin, Hyun Song, 2010. "Liquidity and leverage," Journal of Financial Intermediation, Elsevier, vol. 19(3), pages 418-437, July.
    9. Angela Milena Rojas, 2008. "Deuda pública interna, patrón metálico y guerras civiles: interconexiones institucionales, la Colombia del siglo XIX," REVISTA LECTURAS DE ECONOMÍA, UNIVERSIDAD DE ANTIOQUIA - CIE, April.
    10. Ignacio Briones & Hugh Rockoff, 2005. "Do Economists Reach a Conclusion on Free-Banking Episodes?," Econ Journal Watch, Econ Journal Watch, vol. 2(2), pages 279-324, August.
    11. Carlos A. Molina, 2005. "Are Firms Underleveraged? An Examination of the Effect of Leverage on Default Probabilities," Journal of Finance, American Finance Association, vol. 60(3), pages 1427-1459, June.
    12. Bartram, Sohnke M. & Brown, Gregory W. & Hund, John E., 2007. "Estimating systemic risk in the international financial system," Journal of Financial Economics, Elsevier, vol. 86(3), pages 835-869, December.
    13. Verwijmeren, Patrick & Derwall, Jeroen, 2010. "Employee well-being, firm leverage, and bankruptcy risk," Journal of Banking & Finance, Elsevier, vol. 34(5), pages 956-964, May.
    14. Sylvester Eijffinger, 2011. "Defining and Measuring Systemic Risk," Chapters,in: Handbook of Central Banking, Financial Regulation and Supervision, chapter 11 Edward Elgar Publishing.
    15. Adolfo Meisel R., 1996. "Autonomia De La Banca Central E Inflacion La Experiencia Colombiana, 1923-1995," BORRADORES DE ECONOMIA 002035, BANCO DE LA REPÚBLICA.
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    Cited by:

    1. Mejía Cubillos, Javier, 2011. "¿Puede ser considerado el auge antioqueño de la segunda mitad del siglo XIX un modelo de desarrollo económico local?
      [Can be considered the Antioquian economic takeoff during the second half of the
      ," MPRA Paper 35627, University Library of Munich, Germany.
    2. Javier Mejía, 2015. "Crecimiento económico de largo plazo en Antioquia, Colombia. Estimación del PIB, 1800-1913," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, June.
    3. Mejía-Cubillos, Javier, 2013. "Vínculos interregionales en la economía colombiana del siglo XIX: Empresariado del Caribe en el interior del país
      [Interregional links in Colombian economy during the 19th century: Caribbean entrep
      ," MPRA Paper 48626, University Library of Munich, Germany.

    More about this item


    systemic risk; social network analysis; financial history; free banking; 19th Century; Antioquia;

    JEL classification:

    • N01 - Economic History - - General - - - Development of the Discipline: Historiographical; Sources and Methods
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • N86 - Economic History - - Micro-Business History - - - Latin America; Caribbean
    • N26 - Economic History - - Financial Markets and Institutions - - - Latin America; Caribbean
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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