Fostering Financial Stability: Three Essays on Banking, Potential Output and Employment

This work is devoted to the analysis of some of the fundamental pillars of economic stability. The first chapter deals with the banking sector, with the development of an innovative Early Warning System to timely identify cases of future financial distress, to allow the early intervention of the supervisor. The second chapter considers Gross Domestic Product and its potential, and discusses a new methodology for estimating potential output. The third and last chapter concludes by examinating the labor market, with the development of a new technique based on state-space modelling to estimate trend employment.