Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1320
result(s)
The Carrot and the Stick: The Business Cycle Implications of Incentive Pay in the Labor Search Model
Staff Working Paper 2015-35
Julien Champagne
This paper considers a real business cycle model with labor search frictions where two types of incentive pay are explicitly introduced following the insights from the micro literature on performance pay (e.g. Lazear, 1986).
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Labour markets
JEL Code(s):
E,
E2,
E24,
J,
J3,
J33,
J4,
J41
Heterogeneity in the Dynamic Effects of Uncertainty on Investment
Staff Working Paper 2015-34
Sungje Byun,
Soojin Jo
How does aggregate profit uncertainty influence investment activity at the firm level? We propose a parsimonious adaptation of a factor-autoregressive conditional heteroscedasticity model to exploit information in a subindustry sales panel for an efficient and tractable estimation of aggregate volatility.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Domestic demand and components,
Econometric and statistical methods,
International topics
JEL Code(s):
C,
C2,
C22,
C23,
D,
D8,
D80,
E,
E2,
E22
Cheap But Flighty: How Global Imbalances Create Financial Fragility
Staff Working Paper 2015-33
Enrico Perotti,
Toni Ahnert
We analyze how a wealth shift to emerging countries may lead to instability in developed countries. Investors exposed to expropriation risk are willing to pay a safety premium to invest in countries with good property rights.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability
JEL Code(s):
F,
F3,
G,
G2
Quantifying Contagion Risk in Funding Markets: A Model-Based Stress-Testing Approach
Staff Working Paper 2015-32
Kartik Anand,
Céline Gauthier,
Moez Souissi
We propose a tractable, model-based stress-testing framework where the solvency risks, funding liquidity risks and market risks of banks are intertwined.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Financial system regulation and policies
JEL Code(s):
C,
C7,
C72,
E,
E5,
E58,
G,
G0,
G01,
G2,
G21,
G28
Exchange Rate Pass-Through, Currency of Invoicing and Market Share
Staff Working Paper 2015-31
Michael Devereux,
Wei Dong,
Ben Tomlin
This paper investigates the impact of market structure on the joint determination of exchange rate pass-through and currency of invoicing in international trade. A novel feature of the study is the focus on market share of firms on both sides of the market—that is, exporting firms and importing firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Exchange rates,
Inflation and prices,
Market structure and pricing
JEL Code(s):
F,
F3,
F4
The Endogenous Relative Price of Investment
Staff Working Paper 2015-30
Joel Wagner
This paper takes a full-information model-based approach to evaluate the link between investment-specific technology and the inverse of the relative price of investment. The two-sector model presented includes monopolistic competition where firms can vary the markup charged on their product depending on the number of firms competing.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles
JEL Code(s):
E,
E3,
E32,
L,
L1,
L11,
L16
Examining Full Collateral Coverage in Canada’s Large Value Transfer System
Staff Working Paper 2015-29
Lana Embree,
Varya Taylor
The Large Value Transfer System (LVTS) is Canada’s main electronic interbank funds transfer system that financial institutions use daily to transmit thousands of payments worth several billions of dollars.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E47,
G,
G2,
G21
Revisiting National Border Effects in Foreign Trade in Goods of Canadian Provinces
Staff Working Paper 2015-28
Farrukh Suvankulov
A significant body of empirical studies demonstrates sizable national border effects in foreign trade of Canadian provinces throughout the 1980s and 1990s. This paper revisits and expands the scope of the border effects analysis by estimating the border effect in trade with U.S. states as well as countries in the European Union (EU) and the G 20 using more recent data from 2001–10.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
International topics
JEL Code(s):
F,
F1,
F14,
F15
Risk Sharing in the Presence of a Public Good
Staff Working Paper 2015-27
Josef Schroth
This paper studies an economy where agents can spend resources on consuming a private good and on funding a public good. There is asymmetric information regarding agents’ relative preference for private versus public good consumption.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Financial system regulation and policies,
Fiscal policy
JEL Code(s):
D,
D8,
D82,
D86,
E,
E6,
E62,
H,
H2,
H21,
H23,
H7,
H77