Staff working papers

• Securitization under Asymmetric Information over the Business Cycle

  Staff Working Paper 2015-9 Martin Kuncl

  This paper studies the efficiency of financial intermediation through securitization in a model with heterogeneous investment projects and asymmetric information about the quality of securitized assets. I show that when retaining part of the risk, the issuer of securitized assets may credibly signal its quality.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Credit and credit aggregates, Economic models, Financial markets, Financial stability, Financial system regulation and policies JEL Code(s): E, E3, E32, E4, E44, G, G0, G01, G2, G20

• What Drives Bank-Intermediated Trade Finance? Evidence from Cross-Country Analysis

  Staff Working Paper 2015-8 Jose Maria Serena, Garima Vasishtha

  Empirical work on the underlying causes of the recent dislocations in bank-intermediated trade finance has been limited by the poor availability of hard data. This paper analyzes the key determinants of bank-intermediated trade finance using a novel data set covering ten banking jurisdictions.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, International financial markets, International topics JEL Code(s): F, F1, F14, F19

• Information, Risk Sharing and Incentives in Agency Problems

  Staff Working Paper 2015-7 Jia Xie

  This paper studies the use of information for incentives and risk sharing in agency problems. When the principal is risk neutral or the outcome is contractible, risk sharing is unnecessary or completely taken care of by a contract on the outcome.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models JEL Code(s): D, D8

• A New Data Set of Quarterly Total Factor Productivity in the Canadian Business Sector

  Staff Working Paper 2015-6 Shutao Cao, Sharon Kozicki

  In this paper, a quarterly growth-accounting data set is built for the Canadian business sector with the top-down approach of Diewert and Yu (2012). Inputs and outputs are measured and used to estimate the quarterly total factor productivity (TFP).

  Content Type(s): Staff research, Staff working papers Topic(s): Productivity JEL Code(s): D, D2, D24, F, F4, F43, O, O4, O47

• Motivations for Capital Controls and Their Effectiveness

  Staff Working Paper 2015-5 Radhika Pandey, Gurnain Pasricha, Ila Patnaik, Ajay Shah

  We assess the motivations for changing capital controls and their effectiveness in India, a country with extensive and long-standing controls. We focus on the controls on foreign borrowing that can, in principle, be motivated by macroprudential concerns.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rate regimes, Financial stability, Financial system regulation and policies, International topics JEL Code(s): F, F3, F32, G, G1, G15, G18

• Does Financial Integration Increase Welfare? Evidence from International Household-Level Data

  Staff Working Paper 2015-4 Christian Friedrich

  Despite a vast empirical literature that assesses the impact of financial integration on the economy, evidence of substantial welfare gains from consumption risk sharing remains elusive. While maintaining the usual cross-country perspective of the literature, this paper explicitly accounts for household heterogeneity and thus relaxes three restrictive assumptions that have featured prominently in the past.

  Content Type(s): Staff research, Staff working papers Topic(s): International financial markets, International topics, Labour markets, Recent economic and financial developments JEL Code(s): E, E2, E21, F, F3, I, I3, I31