Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1304
result(s)
Inequality in Parental Transfers, Borrowing Constraints and Optimal Higher Education Subsidies
Staff Working Paper 2019-7
Youngmin Park
This paper studies optimal education subsidies when parental transfers are unequally distributed across students and cannot be publicly observed. After documenting substantial inequality in parental transfers among US college students with similar family resources, I examine its implications for how the education subsidy should vary with schooling level and family resources to minimize inefficiencies generated by borrowing constraints.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Fiscal policy,
Potential output,
Productivity
JEL Code(s):
D,
D1,
D14,
D6,
D61,
D64,
D8,
D82,
I,
I2,
I22,
J,
J2,
J24
The Distributional Effects of Conventional Monetary Policy and Quantitative Easing: Evidence from an Estimated DSGE Model
Staff Working Paper 2019-6
Stefan Hohberger,
Romanos Priftis,
Lukas Vogel
This paper compares the distributional effects of conventional monetary policy and quantitative easing (QE) within an estimated open-economy DSGE model of the euro area.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Interest rates,
Monetary policy,
Monetary policy transmission
JEL Code(s):
E,
E4,
E44,
E5,
E52,
F,
F4,
F41
Corporate Debt Composition and Business Cycles
Staff Working Paper 2019-5
Jelena Zivanovic
Based on empirical evidence, I propose a dynamic stochastic general equilibrium model with two financial sectors to analyze the role of corporate debt composition (bank versus bond financing) in the transmission of economic shocks.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Financial institutions,
Financial markets,
Recent economic and financial developments
JEL Code(s):
E,
E3,
E32,
E4,
E44
Frictional Capital Reallocation I: Ex Ante Heterogeneity
Staff Working Paper 2019-4
Randall Wright,
Sylvia Xiaolin Xiao,
Yu Zhu
This paper studies dynamic general equilibrium models where firms trade capital in frictional markets. Gains from trade arise due to ex ante heterogeneity: some firms are better at investment, so they build capital in the primary market; others acquire it in the secondary market.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Monetary policy
JEL Code(s):
E,
E2,
E22,
E4,
E44
Can Capital Deepening Explain the Global Decline in Labor’s Share?
Staff Working Paper 2019-3
Andrew Glover,
Jacob Short
We estimate an aggregate elasticity of substitution between capital and labor near or below one, which implies that capital deepening cannot explain the global decline in labor's share. Our methodology derives from transition paths in the neo-classical growth model.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Firm dynamics,
International topics,
Labour markets
JEL Code(s):
E,
E1,
E13,
E2,
E22,
E25,
J,
J3
The Productivity Slowdown in Canada: An ICT Phenomenon?
Staff Working Paper 2019-2
Jeffrey Mollins,
Pierre St-Amant
We ask whether a weaker contribution of information and communication technologies (ICT) to productivity growth could account for the productivity slowdown observed in Canada since the early 2000s. To answer this question, we consider several methods capturing channels through which ICT could affect aggregate productivity growth.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Productivity
JEL Code(s):
D,
D2,
D24,
O,
O4,
O41,
O47
A Framework for Analyzing Monetary Policy in an Economy with E-money
Staff Working Paper 2019-1
Yu Zhu,
Scott Hendry
This paper considers an economy where central-bank-issued fiat money competes with privately issued e-money. We study a policy-setting game between the central bank and the e-money issuer and find (1) the optimal monetary policy of the central bank depends on the policy of the private issuer and may deviate from the Friedman rule; (2) multiple equilibria may exist; (3) when the economy approaches a cashless state, the central bank’s optimal policy improves the market power of the e-money issuer and can lead to a discrete decrease in welfare and a discrete increase in inflation; and (4) first best cannot be achieved.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Monetary policy
JEL Code(s):
E,
E5,
E52
Limited Commitment, Endogenous Credibility and the Challenges of Price-level Targeting
Staff Working Paper 2018-61
Gino Cateau,
Malik Shukayev
This paper studies the cost of limited commitment when a central bank has the discretion to adjust policy whenever the costs of honoring its past commitments become high. Specifically, we consider a central bank that seeks to implement optimal policy in a New Keynesian model by committing to a price-level target path.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credibility,
Inflation targets,
Monetary policy framework
JEL Code(s):
E,
E3,
E31,
E5,
E52
Inference in Games Without Nash Equilibrium: An Application to Restaurants’ Competition in Opening Hours
Staff Working Paper 2018-60
Erhao Xie
This paper relaxes the Bayesian Nash equilibrium (BNE) assumption commonly imposed in empirical discrete choice games with incomplete information. Instead of assuming that players have unbiased/correct expectations, my model treats a player’s belief about the behavior of other players as an unrestricted unknown function. I study the joint identification of belief and payoff functions.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Market structure and pricing
JEL Code(s):
C,
C5,
C57,
L,
L1,
L13,
L8,
L85