Staff research

• Forecasting Canadian GDP: Region-Specific versus Countrywide Information

  Staff Working Paper 2005-31 Frédérick Demers, David Dupuis

  The authors investigate whether the aggregation of region-specific forecasts improves upon the direct forecasting of Canadian GDP growth.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods JEL Code(s): C, C3, C32, C5, C53, E, E1, E17

• Intertemporal Substitution in Macroeconomics: Evidence from a Two-Dimensional Labour Supply Model with Money

  Staff Working Paper 2005-30 Ali Dib, Louis Phaneuf

  The hypothesis of intertemporal substitution in labour supply has a history of empirical failure when confronted with aggregate time-series data.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Labour markets JEL Code(s): C, C5, C52, E, E2, E24, E3, E32, J, J2, J22

• Has Exchange Rate Pass-Through Really Declined in Canada?

  Staff Working Paper 2005-29 Hafedh Bouakez, Nooman Rebei

  Several empirical studies suggest that exchange rate pass-through has declined in recent years in industrialized countries.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Economic models, Exchange rates, Inflation and prices, International topics JEL Code(s): F, F3, F4

• Inflation and Relative Price Dispersion in Canada: An Empirical Assessment

  Staff Working Paper 2005-28 André Binette, Sylvain Martel

  The authors investigate empirically the relationship between different aspects of inflation and relative price dispersion in Canada using a Markov regime-switching Phillips curve.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Inflation and prices JEL Code(s): C, C3, C32, E, E3, E31

• Inflation Dynamics and the New Keynesian Phillips Curve: An Identification-Robust Econometric Analysis

  Staff Working Paper 2005-27 Jean-Marie Dufour, Lynda Khalaf, Maral Kichian

  The authors use identification-robust methods to assess the empirical adequacy of a New Keynesian Phillips curve (NKPC) equation.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, Inflation and prices JEL Code(s): C, C1, C13, C5, C52, E, E3, E31

• Uninsured Idiosyncratic Production Risk with Borrowing Constraints

  Staff Working Paper 2005-26 Francisco Covas

  The author analyzes a general-equilibrium model of a heterogeneous agents economy in which the agents are subject to borrowing constraints and uninsurable idiosyncratic production risk.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Economic models, Financial institutions, Financial markets JEL Code(s): E, E2, E22, G, G1, G11, M, M1, M13

• The Impact of Unanticipated Defaults in Canada's Large Value Transfer System

  Staff Working Paper 2005-25 Darcey McVanel

  Canada's Large Value Transfer System (LVTS) is designed to meet international risk-proofing standards at a minimum cost to participants in terms of collateral requirements.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Payment clearing and settlement systems JEL Code(s): E, E4, E44, E47, G, G2, G21

• A Search Model of Venture Capital, Entrepreneurship, and Unemployment

  Staff Working Paper 2005-24 Robin Boadway, Oana Secrieru, Marianne Vigneault

  The authors develop a search model of venture capital in which the number of successful matches of entrepreneurs and venture capitalists (VCs) at any moment in time is a function of the number of entrepreneurs searching for funds, the number of VCs searching for entrepreneurs, and the number of vacancies posted by each VC.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial markets, Fiscal policy, Labour markets JEL Code(s): D, D8, D82, G, G1, G18, G2, G24, H, H2, H21, J, J6, J64

• Pocket Banks and Out-of-Pocket Losses: Links between Corruption and Contagion

  Staff Working Paper 2005-23 Raphael Solomon

  The author describes a model with a corrupt banking system, in which bankers knowingly lend at market interest rates to back projects riskier than the market rate indicates.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Financial stability JEL Code(s): D, D8, D82, G, G1, G19, G2, G21

• The Effects of the Exchange Rate on Investment: Evidence from Canadian Manufacturing Industries

  Staff Working Paper 2005-22 Tarek Harchaoui, Faouzi Tarkhani, Terence Yuen

  Using industry-level data for 22 Canadian manufacturing industries, the authors examine the relationship between exchange rates and investment during the period 1981–97.

  Content Type(s): Staff research, Staff working papers Research Topic(s): Domestic demand and components, Exchange rates JEL Code(s): D, D2, D24, F, F4