Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1330
result(s)
Does Indexation Bias the Estimated Frequency of Price Adjustment?
Staff Working Paper 2007-15
Maral Kichian,
Oleksiy Kryvtsov
We assess the implications of price indexation for estimated frequency of price adjustment in sticky price models of business cycles. These models predominantly assume that non-reoptimized prices are indexed to lagged or average inflation.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Economic models,
Inflation and prices
JEL Code(s):
E,
E3,
E31,
E37
Exporting and FDI with Endogenous Productivity
Staff Working Paper 2007-14
Oana Secrieru,
Marianne Vigneault
This paper provides an analysis of how a firm’s decision to serve a foreign market by exporting or by engaging in foreign direct investment (FDI) affects firm productivity, when productivity is endogeneous as a function of training. The main result of our paper is that, with endogeneous productivity, exporting results in lower productivity than does FDI, but exporting may result in higher or lower employment and output than does FDI.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
International topics,
Labour markets,
Productivity
JEL Code(s):
F,
F2,
F22,
F23
Optimization in a Simulation Setting: Use of Function Approximation in Debt Strategy Analysis
Staff Working Paper 2007-13
David Bolder,
Tiago Rubin
The stochastic simulation model suggested by Bolder (2003) for the analysis of the federal government's debt-management strategy provides a wide variety of useful information. It does not, however, assist in determining an optimal debt-management strategy for the government in its current form.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Debt management,
Econometric and statistical methods,
Financial markets,
Fiscal policy
JEL Code(s):
C,
C0,
C1,
C14,
C15,
C5,
C51,
C52,
C6,
C61,
C65,
E,
E6,
G,
G1,
H,
H6,
H63
Schooling, Inequality and Government Policy
Staff Working Paper 2007-12
Oleksiy Kryvtsov,
Alexander Ueberfeldt
This paper asks: What is the effect of government policy on output and inequality in an environment with education and labor-supply decisions? The answer is given in a general equilibrium model, consistent with the post 1960s facts on male wage inequality and labor supply in the U.S. In the model, education and labor-supply decisions depend on progressive income taxation, the education system, the social security system, and technology-driven wage differentials.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Labour markets,
Potential output,
Productivity
JEL Code(s):
H,
H5,
H52,
J,
J3,
J31,
J38
Uncollateralized Overnight Loans Settled in LVTS
Staff Working Paper 2007-11
Scott Hendry,
Nadja Kamhi
Loan-level data on the uncollateralized overnight loan market is generated using payment data from Canada's Large Value Transfer System (LVTS) and a modified version of the methodology proposed in Furfine (1999). There were on average just under 100 loans extended in this market each day from March 2004 to March 2006 for a total daily value of about $5 billion.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Interest rates
JEL Code(s):
E,
E4,
E44,
E5,
E50,
G,
G1,
G12
Do We Need the IMF to Resolve a Crisis? Lessons from Past Episodes of Debt Restructuring
Staff Working Paper 2007-10
Philipp Maier
This study investigate how debt restructurings have evolved over the decades. Debtors and creditors have a long history of engaging an outsider – a “third party”, such as the IMF – to organise and facilitate debt restructurings.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
International topics
JEL Code(s):
E,
E5,
F,
F3,
N,
N1,
N2
Best Instruments for Market Discipline in Banking
Staff Working Paper 2007-9
Greg Caldwell
The author develops a dynamic model of banking competition to determine which capital instrument is most effective in disciplining banks' risk choice. Comparisons are conducted between equity, subordinated debentures (SD), and uninsured deposits (UD) as funding sources.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions
JEL Code(s):
G,
G2,
G21,
G28
Evaluating Forecasts from Factor Models for Canadian GDP Growth and Core Inflation
Staff Working Paper 2007-8
Frédérick Demers,
Calista Cheung
This paper evaluates the performance of static and dynamic factor models for forecasting Canadian real output growth and core inflation on a quarterly basis. We extract the common component from a large number of macroeconomic indicators, and use the estimates to compute out-of-sample forecasts under a recursive and a rolling scheme with different window sizes.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods
JEL Code(s):
C,
C3,
C32,
E,
E3,
E37
Technology Shocks and Business Cycles: The Role of Processing Stages and Nominal Rigidities
Staff Working Paper 2007-7
Louis Phaneuf,
Nooman Rebei
This paper develops and estimates a dynamic general equilibrium model that realistically accounts for an input-output linkage between firms operating at different stages of processing. Firms face technological change which is specific to their processing stage and charge new prices according to stage-specific Calvo-probabilities.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Economic models
JEL Code(s):
E,
E3,
E32