Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1304
result(s)
Expropriation Risk and FDI in Developing Countries: Does Return of Capital Dominate Return on Capital?
Staff Working Paper 2017-9
M. Akhtaruzzaman,
Nathan Berg,
Christopher Hajzler
Previously reported effects of institutional quality and political risks on foreign direct investment (FDI) are mixed and, therefore, difficult to interpret. We present empirical evidence suggesting a relatively clear, statistically robust, and intuitive characterization.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Development economics,
International financial markets
JEL Code(s):
D,
D2,
D23,
F,
F2,
F21,
F23
Adoption Costs of Financial Innovation: Evidence from Italian ATM Cards
Staff Working Paper 2017-8
Kim Huynh,
Philipp Schmidt-Dengler,
Gregor W. Smith,
Angelika Welte
The discrete choice to adopt a financial innovation affects a household’s exposure to inflation and transactions costs. We model this adoption decision as being subject to an unobserved cost.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Econometric and statistical methods,
Financial services
JEL Code(s):
C,
C3,
C35,
D,
D1,
D14,
E,
E4,
E41
Banking Regulation and Market Making
Staff Working Paper 2017-7
David Cimon,
Corey Garriott
We model how securities dealers respond to regulations on leverage, position and liquidity such as those imposed by the Basel III framework. We show that while asset prices exhibit greater price impact, bid-ask spreads do not change and trading volumes may even increase.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Financial system regulation and policies,
Market structure and pricing
JEL Code(s):
G,
G1,
G14,
G2,
G20,
L,
L1,
L10
Optimal Capital Regulation
Staff Working Paper 2017-6
Stéphane Moyen,
Josef Schroth
We study constrained-efficient bank capital regulation in a model with market-imposed equity requirements. Banks hold equity buffers to insure against sudden loss of access to funding. However, in the model, banks choose to only partially self-insure because equity is privately costly.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Financial institutions,
Financial stability,
Financial system regulation and policies
JEL Code(s):
E,
E1,
E13,
E3,
E32,
E4,
E44
Canadian Bank Notes and Dominion Notes: Lessons for Digital Currencies
Staff Working Paper 2017-5
Ben Fung,
Scott Hendry,
Warren E. Weber
This paper studies the period in Canada when both private bank notes and government-issued notes (Dominion notes) were simultaneously in circulation. Because both of these notes shared many of the characteristics of today's digital currencies, the experience with these notes can be used to draw lessons about how digital currencies might perform.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Financial services
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E58
Stability and Efficiency in Decentralized Two‐Sided Markets with Weak Preferences
Staff Working Paper 2017-4
Radoslav Raykov
Many decentralized markets are able to attain a stable outcome despite the absence of a central authority (Roth and Vande Vate, 1990). A stable matching, however, need not be efficient if preferences are weak. This raises the question whether a decentralized market with weak preferences can attain Pareto efficiency in the absence of a central matchmaker.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models
JEL Code(s):
C,
C7,
C78,
D,
D6,
D61
Price-Level Dispersion versus Inflation-Rate Dispersion: Evidence from Three Countries
Staff Working Paper 2017-3
David Fielding,
Christopher Hajzler,
James (Jim) C. MacGee
Inflation can affect both the dispersion of commodity-specific price levels across locations (relative price variability, RPV) and the dispersion of inflation rates (relative inflation variability, RIV). Some menu-cost models and models of consumer search suggest that the RIV-inflation relationship could differ from the RPV-inflation relationship.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices
JEL Code(s):
E,
E3,
E31,
E5,
E50
A Dynamic Factor Model for Nowcasting Canadian GDP Growth
Staff Working Paper 2017-2
Tony Chernis,
Rodrigo Sekkel
This paper estimates a dynamic factor model (DFM) for nowcasting Canadian gross domestic product. The model is estimated with a mix of soft and hard indicators, and it features a high share of international data.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Econometric and statistical methods
JEL Code(s):
C,
C3,
C32,
C38,
C5,
C53,
E,
E3,
E37
Terms-of-Trade and House Price Fluctuations: A Cross-Country Study
Staff Working Paper 2017-1
Paul Corrigan
Terms-of-trade shocks are known to be key drivers of business cycles in open economies. This paper argues that terms-of-trade shocks were also important for house price fluctuations in a panel of developed countries over the 1994–2015 period.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Housing,
International topics
JEL Code(s):
C,
C3,
C32,
E,
E3,
E32,
E5,
E51,
F,
F3,
F36,
F4,
F41