Staff research

• Lines of Credit and Consumption Smoothing: The Choice between Credit Cards and Home Equity Lines of Credit

  Staff Working Paper 2005-18 Shubhasis Dey

  The author models the choice between credit cards and home equity lines of credit (HELOCs) within a framework where consumers hold lines of credit as instruments of consumption smoothing across state and time.

  Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates JEL Code(s): D, D1, D8, D81

• Risk Perceptions and Attitudes

  Staff Working Paper 2005-17 Miroslav Misina

  Changes in risk perception have been used in various contexts to explain shorter-term developments in financial markets, as part of a mechanism that amplifies fluctuations in financial markets, as well as in accounts of "irrational exuberance."

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Financial markets JEL Code(s): D, D8, D81, D84, G, G1, G12

• Endogenous Central Bank Credibility in a Small Forward-Looking Model of the U.S. Economy

  Staff Working Paper 2005-16 René Lalonde

  The linkages between inflation and the economy's cyclical position are thought to be strongly affected by the credibility of monetary authorities.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Inflation and prices, Monetary policy transmission JEL Code(s): C, C3, C32, E, E5, E52

• Learning-by-Doing or Habit Formation?

  Staff Working Paper 2005-15 Hafedh Bouakez, Takashi Kano

  In a recent paper, Chang, Gomes, and Schorfheide (2002) extend the standard real business cycle (RBC) model to allow for a learning-by-doing (LBD) mechanism whereby current labour supply affects future productivity.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Economic models, Labour markets JEL Code(s): C, C5, C52, E, E3, E32, J, J2, J22

• Labour Market Adjustments to Exchange Rate Fluctuations: Evidence from Canadian Manufacturing Industries

  Staff Working Paper 2005-14 Danny Leung, Terence Yuen

  The authors provide some of the first empirical evidence on labour market adjustments to exchange rate movements in Canadian manufacturing industries.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Labour markets JEL Code(s): E, E2, E23, F, F4

• Efficiency and Economies of Scale of Large Canadian Banks

  Staff Working Paper 2005-13 Jason Allen, Ying Liu

  The authors measure the economies of scale of Canada's six largest banks and their costefficiency over time. Using a unique panel data set from 1983 to 2003, they estimate pooled translog cost functions and derive measures of relative efficiency and economies of scale.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions JEL Code(s): C, C3, C33, D, D2, D24, G, G2, G21

• Do Exchange Rates Affect the Capital-Labour Ratio? Panel Evidence from Canadian Manufacturing Industries

  Staff Working Paper 2005-12 Danny Leung, Terence Yuen

  Using industry-level data for Canadian manufacturing industries from 1981 to 1997, the authors find empirical evidence of a negative relationship between the capital-labour ratio and the user cost of capital relative to the price of labour.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Productivity JEL Code(s): F, F4

• An Analysis of Closure Policy under Alternative Regulatory Structures

  Staff Working Paper 2005-11 Greg Caldwell

  The author develops a theoretical model of bank closure. The regulatory decision about bank failure consists of two parts: whether to close and how to close.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions JEL Code(s): G, G2, G21, G28

• Educational Spillovers: Does One Size Fit All?

  Staff Working Paper 2005-10 Robert Baumann, Raphael Solomon

  In a search model of production, where agents accumulate heterogeneous amounts of human capital, an individual worker's wage depends on average human capital in the searching population.

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets JEL Code(s): I, I2, I29, J, J2, J24, J3, J31

• State Dependence in Fundamentals and Preferences Explains Risk-Aversion Puzzle

  Staff Working Paper 2005-9 Fousseni Chabi-Yo, René Garcia, Eric Renault

  The authors examine the ability of economic models with regime shifts to rationalize and explain the risk-aversion and pricing-kernel puzzles put forward in Jackwerth (2000).

  Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Market structure and pricing JEL Code(s): G, G1, G12, G13