Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1302
result(s)
How Long is Forever in the Laboratory? Three Implementations of an Infinite-Horizon Monetary Economy
Staff Working Paper 2021-16
Janet Hua Jiang,
Daniela Puzzello,
Cathy Zhang
Standard monetary models adopt an infinite horizon with discounting. Testing these models in the lab requires implementing this horizon within a limited time frame. We compare three approaches to such an implementation and discuss their relative advantages.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Economic models,
Inflation and prices
JEL Code(s):
C,
C9,
C92,
D,
D8,
D83,
E,
E4,
E40
Labor Demand Response to Labor Supply Incentives: Lessons from the German Mini-Job Reform
Staff Working Paper 2021-15
Gabriela Galassi
How do firms change their employment decisions when tax benefits for low-earning workers are expanded? Some firms increase employment overall, whereas others replace high-earning workers with low-earning workers, according to German linked employer-employee data.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Firm dynamics,
Labour markets
JEL Code(s):
E,
E2,
E24,
E6,
E64,
H,
H2,
H20,
H24,
H3,
H32,
I,
I3,
I38,
J,
J2,
J23,
J3,
J38
Secular Economic Changes and Bond Yields
Staff Working Paper 2021-14
Bruno Feunou,
Jean-Sébastien Fontaine
We investigate the economic forces behind the secular decline in bond yields. Before the anchoring of inflation in the mid-1990s, nominal shocks drove inflation, output and bond yields. Afterward, the impacts of nominal shocks were much less significant.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Econometric and statistical methods,
Interest rates,
Monetary policy and uncertainty,
Potential output
JEL Code(s):
E,
E4,
E43,
G,
G1,
G12
Debt-Relief Programs and Money Left on the Table: Evidence from Canada's Response to COVID-19
Staff Working Paper 2021-13
Jason Allen,
Robert Clark,
Shaoteng Li,
Nicolas Vincent
During the COVID-19 pandemic, Canadian financial institutions offered debt-relief programs to help borrowers cope with job losses and economic insecurity. We consider the low take-up rates for these programs and suggest that to be effective, such programs must be visible and easy to use.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Coronavirus disease (COVID-19),
Credit and credit aggregates,
Debt management
JEL Code(s):
G,
G3,
G31,
H,
H5
Imperfect Banking Competition and Macroeconomic Volatility: A DSGE Framework
Staff Working Paper 2021-12
Jiaqi Li
How do banks adjust their loan rate markup in response to macroeconomic shocks?
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Financial institutions,
Interest rates
JEL Code(s):
E,
E3,
E32,
E4,
E44,
G,
G2,
G21,
L,
L1,
L13
A Generalized Endogenous Grid Method for Default Risk Models
Staff Working Paper 2021-11
Youngsoo Jang,
Soyoung Lee
Models with default options are hard to solve. We propose an extension of the endogenous grid method that solves default risk models more efficiently and accurately.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Credit risk management
JEL Code(s):
C,
C6,
C63,
E,
E3,
E37
Monetary Policy Pass-Through with Central Bank Digital Currency
Staff Working Paper 2021-10
Janet Hua Jiang,
Yu Zhu
Many central banks are considering issuing a central bank digital currency (CBDC). This would introduce a new policy tool—interest on CBDC. We investigate how this new tool would interact with traditional monetary policy tools, such as the interest on central bank reserves.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Monetary policy transmission
JEL Code(s):
E,
E5,
E50,
E52
Market Concentration and Uniform Pricing: Evidence from Bank Mergers
Staff Working Paper 2021-9
João Granja,
Nuno Paixao
We show that US banks price deposits almost uniformly across their branches and that this pricing practice is more important than increases in local market concentration in explaining the deposit rate dynamics following bank mergers.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial system regulation and policies,
Market structure and pricing
JEL Code(s):
D,
D4,
G,
G2,
G20,
G21,
G28,
G3,
G34,
L,
L1,
L11
Distributional Effects of Payment Card Pricing and Merchant Cost Pass-through in Canada and the United States
Staff Working Paper 2021-8
Marie-Hélène Felt,
Fumiko Hayashi,
Joanna Stavins,
Angelika Welte
Although credit cards are more expensive for merchants to accept than cash or debit cards, merchants typically pass through their costs evenly to all customers. Along with consumer card rewards and banking fees, this creates cross-subsidies between payment methods. Because higher-income individuals tend to use credit cards more than those with lower incomes, our results indicate that these cross-subsidies might lead to regressive distributional effects.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Financial institutions,
Financial services,
Market structure and pricing,
Payment clearing and settlement systems
JEL Code(s):
D,
D1,
D12,
D2,
D23,
D3,
D31,
E,
E4,
E42,
G,
G2,
G21,
L,
L8,
L81