Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1306
result(s)
Producer Heterogeneity, Value-Added, and International Trade
Staff Working Paper 2016-54
Patrick Alexander
Standard new trade models depict producers as heterogeneous in total factor productivity. In this paper, I adapt the Eaton and Kortum (2002) model of international trade to incorporate tradable intermediate goods and producer heterogeneity in value-added productivity.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
International topics,
Productivity,
Trade integration
JEL Code(s):
F,
F1,
F11,
F12,
F14
Capital Flows to Developing Countries: Is There an Allocation Puzzle?
Staff Working Paper 2016-53
Josef Schroth
Foreign direct investment inflows are positively related to growth across developing countries—but so are savings in excess of investment. I develop an explanation for this well-established puzzle by focusing on the limited availability of consumer credit in developing countries together with general equilibrium effects.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Foreign reserves management,
Interest rates,
International financial markets
JEL Code(s):
E,
E1,
E13,
E2,
E21,
F,
F4,
F43
Supervising Financial Regulators
Staff Working Paper 2016-52
Josef Schroth
How much discretion should local financial regulators in a banking union have in accommodating local credit demand? I analyze this question in an economy where local regulators privately observe expected output from high lending. They do not fully internalize default costs from high lending since deposit insurance cannot be priced fairly.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Financial stability,
Financial system regulation and policies,
Regional economic developments
JEL Code(s):
E,
E4,
E44,
G,
G2,
G28,
H,
H7
Firm-Specific Shocks and Aggregate Fluctuations
Staff Working Paper 2016-51
Leonid Karasik,
Danny Leung,
Ben Tomlin
In order to understand what drives aggregate fluctuations, many macroeconomic models point to aggregate shocks and discount the contribution of firm-specific shocks. Recent research from other developed countries, however, has found that aggregate fluctuations are in part driven by idiosyncratic shocks to large firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Firm dynamics,
Market structure and pricing
JEL Code(s):
E,
E2,
E22,
E23,
E24,
E3,
L,
L6
Broker Routing Decisions in Limit Order Markets
Staff Working Paper 2016-50
David Cimon
The primary focus of this paper is to study conflict of interest in the brokerage market. Brokers face a conflict of interest when the commissions they receive from investors differ from the costs imposed by different trading venues.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Market structure and pricing
JEL Code(s):
G,
G2,
G24,
G28
Monetary Policy Tradeoffs Between Financial Stability and Price Stability
Staff Working Paper 2016-49
Malik Shukayev,
Alexander Ueberfeldt
We analyze the impact of interest rate policy on financial stability in an environment where banks can experience runs on their short-term liabilities, forcing them to sell assets at fire-sale prices.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Monetary policy framework,
Monetary policy transmission
JEL Code(s):
D,
D6,
D62,
E,
E3,
E32,
E4,
E44,
G,
G0,
G01
Business Cycles in Small, Open Economies: Evidence from Panel Data Between 1900 and 2013
Staff Working Paper 2016-48
Thuy Lan Nguyen,
Wataru Miyamoto
Using a novel data set for 17 countries dating from 1900 to 2013, we characterize business cycles in both small developed and developing countries in a model with financial frictions and a common shock structure. We estimate the model jointly for these 17 countries using Bayesian methods.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models,
International topics
JEL Code(s):
E,
E1,
E13,
E3,
E32,
F,
F4,
F41,
F44
Managing Risk Taking with Interest Rate Policy and Macroprudential Regulations
Staff Working Paper 2016-47
Simona Cociuba,
Malik Shukayev,
Alexander Ueberfeldt
We develop a model in which a financial intermediary’s investment in risky assets—risk taking—is excessive due to limited liability and deposit insurance and characterize the policy tools that implement efficient risk taking.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial system regulation and policies,
Monetary policy framework
JEL Code(s):
E,
E4,
E44,
E5,
E52,
G,
G1,
G11,
G18
Fragility of Resale Markets for Securitized Assets and Policy of Asset Purchases
Staff Working Paper 2016-46
Martin Kuncl
Markets for securitized assets were characterized by high liquidity prior to the recent financial crisis and by a sudden market dry-up at the onset of the crisis. A general equilibrium model with heterogeneous investment opportunities and information frictions predicts that, in boom periods or mild recessions, the degree of adverse selection in resale markets for securitized assets is limited because of the reputation-based guarantees by asset originators.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Credit and credit aggregates,
Economic models,
Financial markets,
Financial stability,
Financial system regulation and policies
JEL Code(s):
E,
E3,
E32,
E5,
G,
G0,
G01,
G2