Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1306
result(s)
Demand for Payment Services and Consumer Welfare: The Introduction of a Central Bank Digital Currency
Staff Working Paper 2020-7
Kim Huynh,
Jozsef Molnar,
Oleksandr Shcherbakov,
Qinghui Yu
Using a two-stage model, we study the determinants of Canadian consumers’ choices of payment method at the point of sale. We estimate consumer preferences and adoption costs for various combinations of payment methods. We analyze how introducing a central bank digital currency would affect the market equilibrium.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Financial services
JEL Code(s):
C,
C5,
C51,
E,
E4,
E42,
L,
L1,
L14,
L5,
L52
A Portfolio-Balance Model of Inflation and Yield Curve Determination
Staff Working Paper 2020-6
Antonio Diez de los Rios
How does the supply of nominal government debt affect the macroeconomy? To answer this question, we propose a portfolio-balance model of the yield curve in which inflation is determined through an interest rate rule.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Debt management,
Inflation and prices,
Interest rates,
Monetary policy
JEL Code(s):
E,
E4,
E43,
E5,
E52,
G,
G1,
G12,
H,
H6,
H63
Identifying Consumer-Welfare Changes when Online Search Platforms Change Their List of Search Results
Staff Working Paper 2020-5
Ryan Martin
Online shopping is often guided by search platforms. Consumers type keywords into query boxes, and search platforms deliver a list of products. Consumers' attention is limited, and exhaustive searches are often impractical.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Market structure and pricing
JEL Code(s):
C,
C1,
C14,
D,
D1,
D11,
D12,
D6,
D8,
D83,
L,
L4,
L40
A Spatial Model of Bank Branches in Canada
Staff Working Paper 2020-4
Heng Chen,
Matthew Strathearn
Using data on bank branch locations across Canada from 2008 to 2018, we explore an interesting aspect of bank branch competition—geographic concentration. We find that bank branch density does not correlate with geographic and market concentration; however, we do find strong correlation with postal-code demographics.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Firm dynamics,
Market structure and pricing
JEL Code(s):
L,
L1,
R,
R3
Managing GDP Tail Risk
Staff Working Paper 2020-3
Thibaut Duprey,
Alexander Ueberfeldt
Models for macroeconomic forecasts do not usually take into account the risk of a crisis—that is, a sudden large decline in gross domestic product (GDP). However, policy-makers worry about such GDP tail risk because of its large social and economic costs.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Economic models,
Financial stability,
Financial system regulation and policies,
Interest rates,
Monetary policy,
Monetary policy framework
JEL Code(s):
D,
D8,
E,
E4,
E44,
E5,
E52,
E58,
G,
G0,
G01
Social Learning and Monetary Policy at the Effective Lower Bound
Staff Working Paper 2020-2
Jasmina Arifovic,
Alex Grimaud,
Isabelle Salle,
Gauthier Vermandel
This research develops a model in which the economy is directly influenced by how pessimistic or optimistic economic agents are about the future. The agents may hold different views and update them as new economic data become available.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Central bank research,
Credibility,
Economic models,
Monetary policy,
Monetary policy communications
JEL Code(s):
C,
C8,
C82,
E,
E3,
E32,
E5,
E52
Contagion in Dealer Networks
Staff Working Paper 2020-1
Jean-Sébastien Fontaine,
Adrian Walton
Dealers connect investors who want to buy or sell securities in financial markets. Over time, dealers and investors form trading networks to save time and resources. An emerging field
of research investigates how networks form.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Market structure and pricing,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
G,
G1,
G2,
G21,
L,
L1,
L14
Monetary Policy and Government Debt Dynamics Without Commitment
Staff Working Paper 2019-52
Dmitry Matveev
I show that maturity considerations affect the optimal conduct of monetary and fiscal policy during a period of government debt reduction. I consider a New Keynesian model and study a dynamic game of monetary and fiscal policy authorities without commitment, characterizing the incentives that drive the choice of interest rate.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Fiscal policy,
Monetary policy
JEL Code(s):
E,
E5,
E52,
E6,
E62,
E63
Technology Adoption in Input-Output Networks
Staff Working Paper 2019-51
Xintong Han,
Lei Xu
We study how input-output networks affect the speed of technology adoption. In particular, we model the decision to adopt the programming language Python 3 by software packages. Python 3 provides advanced features but is not backward compatible with Python 2, which implies it comes with adoption costs.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Firm dynamics,
Productivity
JEL Code(s):
C,
C6,
C61,
L,
L2,
L23,
L8,
L86,
O,
O1,
O14,
O3,
O33