Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1330
result(s)
Bouncing Back: How Mothballing Curbs Prices
Staff Working Paper 2024-51
Thibaut Duprey,
Artur Kotlicki,
Daniel E. Rigobon,
Philip Schnattinger
We investigate the macroeconomic impacts of mothballed businesses—those that closed temporarily—on sectoral equilibrium prices after a negative demand shock. Our results suggest that pandemic fiscal support for temporary closures may have eased inflationary pressures.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Firm dynamics,
Fiscal policy,
Inflation and prices
JEL Code(s):
C,
C5,
C55,
C8,
C81,
D,
D2,
D22,
E,
E3,
E32
Consumer Search, Productivity Heterogeneity, Prices, Markups, and Pass-through: Theory and Estimation
Staff Working Paper 2024-50
Alex Chernoff,
Allen Head,
Beverly Lapham
We develop and estimate a search model in which identical consumers trade with price-setting firms that differ in productivity. We use the estimated model to characterize the qualitative and quantitative differences in prices and markups across firms. We explore how individual firms respond to changes in cost and demand and how they pass these through to their prices and markup.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Service sector
JEL Code(s):
E,
E3,
E31,
L,
L1,
L16
The Distributional Origins of the Canada-US GDP and Labour Productivity Gaps
Staff Working Paper 2024-49
James (Jim) C. MacGee,
Joel Rodrigue
We find the top 10% of the income distribution accounts for three-quarters of the gap in GDP per adult between Canada and the United States. The large gaps in income for high-income earners help distinguish between alternative explanations of this persistent gap in GDP per adult.
Familiarity with Crypto and Financial Concepts: Cryptoasset Owners, Non-Owners, and Gender Differences
Staff Working Paper 2024-48
Daniela Balutel,
Walter Engert,
Christopher Henry,
Kim Huynh,
Doina Rusu,
Marcel Voia
Measuring cryptoasset knowledge alongside financial knowledge enhances our understanding of individuals' decisions to purchase cryptoassets. This paper uses microdata from the Bank of Canada’s Bitcoin Omnibus Survey to examine gender differences and the interrelationship between crypto and financial knowledge through an empirical joint analysis.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Digital currencies and fintech,
Econometric and statistical methods
JEL Code(s):
C,
C8,
C81,
D,
D1,
D14,
D9,
D91,
G,
G5,
G53,
O,
O5,
O51
The (Mis)Allocation of Corporate News
Staff Working Paper 2024-47
Xing Guo,
Alistair Macaulay,
Wenting Song
We study how the distribution of information supply by the news media affects the macroeconomy. We find that media coverage focuses particularly on the largest firms, and that firms’ equity financing and investment increase after media coverage. But these equity and investment responses are largest among small, rarely covered firms. Our quantitative studies highlight that the aggregate effects of media coverage depend crucially on how that coverage is allocated.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Firm dynamics
JEL Code(s):
D,
D2,
D22,
D6,
D61,
L,
L1,
L11,
L2,
L20
Is This Normal? The Cost of Assuming that Derivatives Have Normal Returns
Staff Working Paper 2024-46
Radoslav Raykov
Derivatives exchanges often determine collateral requirements, which are fundamental to market safety, with dated risk models assuming normal returns. However, derivatives returns are heavy-tailed, which leads to the systematic under-collection of collateral (margin). This paper uses extreme value theory (EVT) to evaluate the cost of this margin inadequacy to market participants in the event of default.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability
JEL Code(s):
G,
G1,
G10,
G11,
G2,
G20
Preferences, Monetary Policy and Household Inflation
Staff Working Paper 2024-45
Geoffrey R. Dunbar
I quantify the importance of changes in household preferences on household inflation rates using 11 years of scanner data for 11,000 US households. My results suggest that changes in household preferences are an important driver of inflation dynamics at the household level.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Monetary policy transmission
JEL Code(s):
D,
D1,
D12,
E,
E5,
E52,
E58
How Do Households Respond to Expected Inflation? An Investigation of Transmission Mechanisms
Staff Working Paper 2024-44
Janet Hua Jiang,
Rupal Kamdar,
Kelin Lu,
Daniela Puzzello
We conduct surveys to study how consumer spending responds to higher inflation expectations. Most respondents spend the same, sticking to fixed budget plans or not considering inflation for spending decisions. About 20% decrease spending because they feel poorer and cut spending to invest in inflation-proof assets. Very few increase spending.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Central bank research,
Inflation and prices,
Inflation targets,
Monetary policy,
Monetary policy transmission
JEL Code(s):
D,
D1,
D15,
D8,
D84,
E,
E2,
E5,
E52,
E7
Gender Gaps in Time Use and Entrepreneurship
Staff Working Paper 2024-43
Pedro Bento,
Lin Shao,
Faisal Sohail
The prevalence of entrepreneurs, particularly low-productivity non-employers, declines as economies develop. This decline is more pronounced for women. Relative to men, women are more likely to be entrepreneurs in poor economies but less likely in rich economies.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Firm dynamics,
Productivity
JEL Code(s):
J,
J2,
L,
L2,
O,
O1