Staff working papers

• Estimating Policy-Neutral Interest Rates for Canada Using a Dynamic Stochastic General-Equilibrium Framework

  Staff Working Paper 2004-9 Jean-Paul Lam, Greg Tkacz

  In an era when the primary policy instrument is the level of the short-term interest rate, a comparison of that rate with some equilibrium rate can be a useful guide for policy and a convenient method to measure the stance of monetary policy.

  Content Type(s): Staff research, Staff working papers Topic(s): Interest rates JEL Code(s): C, C3, C32, E, E3, E37

• The Economic Theory of Retail Pricing: A Survey

  Staff Working Paper 2004-8 Oana Secrieru

  The types of contracts that arise in a typical vertical manufacturer–retailer relationship are more sophisticated than usually assumed in standard macroeconomic models.

  Content Type(s): Staff research, Staff working papers Topic(s): Market structure and pricing JEL Code(s): D, D4, D40, L, L2, L22, L4, L42

• The Demand for Money in a Stochastic Environment

  Staff Working Paper 2004-7 Joseph Atta-Mensah

  The author re-examines the demand-for-money theory in an intertemporal optimization model. The demand for real money balances is derived to be a function of real income and the rates of return of all financial assets traded in the economy.

  Content Type(s): Staff research, Staff working papers Topic(s): Monetary aggregates JEL Code(s): E, E4, E41, E5, E50, G, G1, G11

• Bank Capital, Agency Costs, and Monetary Policy

  Staff Working Paper 2004-6 Césaire Meh, Kevin Moran

  Evidence suggests that banks, like firms, face financial frictions when raising funds.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Financial institutions, Monetary policy transmission JEL Code(s): E, E4, E44, E5, E52, G, G2, G21

• Structural Change and Forecasting Long-Run Energy Prices

  Staff Working Paper 2004-5 Jean-Thomas Bernard, Lynda Khalaf, Maral Kichian

  The authors test the statistical significance of Pindyck's (1999) suggested class of econometric equations that model the behaviour of long-run real energy prices.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods JEL Code(s): C, C2, C22, C5, C52, C53, Q, Q4, Q40

• A Structural Small Open-Economy Model for Canada

  Staff Working Paper 2004-4 Stephen Murchison, Andrew Rennison, Zhenhua Zhu

  The authors develop a small open-economy dynamic stochastic general-equilibrium (DSGE) model in an attempt to understand the dynamic relationships in Canadian macroeconomic data.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Economic models, Inflation and prices JEL Code(s): E, E2, E3, E5, E52

• Modélisation « PAC » du secteur extérieur de l'économie américaine

  Staff Working Paper 2004-3 Marc-André Gosselin, René Lalonde

  In this paper, the authors use polynomial adjustment cost (PAC) models to analyze and forecast the main components of the U.S. trade sector.

  Content Type(s): Staff research, Staff working papers Topic(s): Domestic demand and components, Econometric and statistical methods, International topics JEL Code(s): C, C3, C32, E, E3, E37, F, F4, F47

• Exact Tests of Equal Forecast Accuracy with an Application to the Term Structure of Interest Rates

  Staff Working Paper 2004-2 Richard Luger

  The author proposes a class of exact tests of the null hypothesis of exchangeable forecast errors and, hence, of the hypothesis of no difference in the unconditional accuracy of two competing forecasts.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods JEL Code(s): C, C1, C12, C2, C22, C5, C52, C53

• The Effect of Adjustment Costs and Organizational Change on Productivity in Canada: Evidence from Aggregate Data

  Staff Working Paper 2004-1 Danny Leung

  A basic neoclassical model of production is often used to assess the contribution of investment to output growth. In the model, investment raises the capital stock and output growth increases in proportion to the growth in capital.

  Content Type(s): Staff research, Staff working papers Topic(s): Productivity JEL Code(s): O, O3, O31, O4, O49