Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1320
result(s)
Unpacking Moving: A Quantitative Spatial Equilibrium Model with Wealth
Staff Working Paper 2023-34
Elisa Giannone,
Qi Li,
Nuno Paixão,
Xinle Pang
We propose a model to understand low observed migration rates by considering the interaction between location and wealth decisions. We look at different policies and find that temporary moving vouchers only slightly increase welfare, while lower housing regulations can decrease the welfare gap by lowering house prices nationwide.
Privacy-Preserving Post-Quantum Credentials for Digital Payments
Staff Working Paper 2023-33
Raza Ali Kazmi,
Duc-Phong Le,
Cyrus Minwalla
Digital payments and decentralized systems enable the creation of new financial products and services for users. One core challenge in digital payments is the need to protect users from fraud and abuse while retaining privacy in individual transactions. We propose a pseudonymous credential scheme for use in payment systems to tackle this problem.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Digital currencies and fintech,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
G,
G2,
G21,
O,
O3,
O31
SME Failures Under Large Liquidity Shocks: An Application to the COVID-19 Crisis
Staff Working Paper 2023-32
Pierre-Olivier Gourinchas,
Şebnem Kalemli-Özcan,
Veronika Penciakova,
Nicholas Sander
We study the effects of financial frictions on firm exit when firms face large liquidity shocks. We develop a simple model of firm cost-minimization that introduces a financial friction that limits firms’ borrowing capacity to smooth temporary shocks to liquidity.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Coronavirus disease (COVID-19),
Firm dynamics,
International topics
JEL Code(s):
D,
D2,
D21,
D22,
E,
E6,
E65,
H,
H8,
H81
The Macroeconomic Effects of Portfolio Equity Inflows
Staff Working Paper 2023-31
Nick Sander
I provide evidence that portfolio equity inflows can have expansionary effects on GDP and inflation if not offset by monetary policy. I use a shift-share instrument to estimate equity inflows based on plausibly exogenous timing of inflows into mutual funds with heterogeneous country portfolios.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
International financial markets,
International topics,
Monetary policy
JEL Code(s):
E,
E3,
E32,
F,
F3,
F32,
F4,
F44
Understanding Inflation Dynamics: The Role of Government Expenditures
We study the impact government expenditure has on inflation. We find that changes in government expenditure account for a substantial portion of inflation variations. We also find that inflation and inflation expectations respond negatively to fiscal spending shocks, reaffirming the supply-side channel through which inflation responds to fiscal expansions.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Fiscal policy,
Inflation and prices
JEL Code(s):
E,
E3,
E6,
E62,
E63
Time Use and Macroeconomic Uncertainty
Staff Working Paper 2023-29
Matteo Cacciatore,
Stefano Gnocchi,
Daniela Hauser
We estimate the effects of economic uncertainty on time use and discuss its macroeconomic implications. We develop a model to demonstrate that substitution between market and non-market work provides an additional insurance margin to households, weakening precautionary savings and labour supply and lowering aggregate demand, ultimately amplifying the contractionary effects of uncertainty.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Coronavirus disease (COVID-19),
Domestic demand and components,
Monetary policy and uncertainty
JEL Code(s):
E,
E2,
E24,
E3,
E32,
E5,
E52,
J,
J2,
J22
Crowdfunding and Risk
Staff Working Paper 2023-28
David Cimon
Crowdfunding may enable unique products to reach the consumer market. I model a crowdfunding technology that publicly screens consumer demand early in the production process. In this model, entrepreneurs like crowdfunding for risky projects where demand is uncertain, but not for large, safe projects or for projects where production costs are uncertain.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Digital currencies and fintech,
Financial markets,
Financial services
JEL Code(s):
G,
G2,
G21,
G24,
G3,
G32
An Investigation into the Effects of Border Carbon Adjustments on the Canadian Economy
Staff Working Paper 2023-27
Y.-H. Henry Chen,
Hossein Hosseini,
Craig Johnston,
Sergey Paltsev,
Marie-Christine Tremblay
We examine the economic implications of border carbon adjustments (BCAs) for Canada. We find that, BCAs, in the form of import tariffs, reduce Canada’s carbon leakage and improve its competitiveness when Canada is part of a broad coalition of BCA-implementing countries. Welfare also improves when tariff revenues are transferred to households.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Climate change,
International topics,
Trade integration
JEL Code(s):
C,
C6,
C68,
F,
F1,
H,
H2,
Q,
Q3,
Q37,
Q5
How Banks Create Gridlock to Save Liquidity in Canada's Large Value Payment System
Staff Working Paper 2023-26
Rodney J. Garratt,
Zhentong Lu,
Phoebe Tian
We show how participants in Canada’s new high-value payment system save liquidity by exploiting the new gridlock resolution arrangement. The findings have important implications for the design of these systems and shed light on financial institutions’ liquidity preference.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
E5,
E58,
G,
G2,
G21