Firm-level Investment Under Imperfect Capital Markets in Ukraine Staff Working Paper 2019-14 Oleksandr Shcherbakov This paper develops and estimates a model of firm-level fixed capital investment when firms face borrowing constraints. Content Type(s): Staff research, Staff working papers Research Topic(s): Econometric and statistical methods, Economic models, Firm dynamics JEL Code(s): C, C6, C61, C63, D, D2, D24, G, G3, G31
April 8, 2019 Why Do Central Banks Care About Market Power? Presentation Carolyn A. Wilkins G7 conference hosted by Banque de France Paris, France Senior Deputy Governor Carolyn A. Wilkins discusses how the competitive landscape and digitalization affect monetary policy and why central banks care about market power. Content Type(s): Press, Speeches and appearances, Presentations Research Topic(s): Firm dynamics, Inflation and prices, Labour markets, Market structure and pricing, Monetary policy transmission, Potential output, Productivity, Service sector
Global Commodity Markets and Rebalancing in China: The Case of Copper Staff Discussion Paper 2019-3 Jeannine Bailliu, Doga Bilgin, Kun Mo, Kurt Niquidet, Benjamin Sawatzky Given that China accounts for about half of global copper consumption, it is reasonable to expect that any significant change in Chinese copper consumption will have an impact on the global market. Content Type(s): Staff research, Staff discussion papers Research Topic(s): Econometric and statistical methods, International topics JEL Code(s): O, O1, O13, O14, Q, Q0, Q02
Corporate Debt Composition and Business Cycles Staff Working Paper 2019-5 Jelena Zivanovic Based on empirical evidence, I propose a dynamic stochastic general equilibrium model with two financial sectors to analyze the role of corporate debt composition (bank versus bond financing) in the transmission of economic shocks. Content Type(s): Staff research, Staff working papers Research Topic(s): Business fluctuations and cycles, Financial institutions, Financial markets, Recent economic and financial developments JEL Code(s): E, E3, E32, E4, E44
Price Caps in Canadian Bond Borrowing Markets Staff Analytical Note 2019-2 Léanne Berger-Soucy, Jean-Sébastien Fontaine, Adrian Walton Price controls, or caps, can lead to shortages, as 1970’s gasoline price controls illustrate. One million trades show that the market for borrowing bonds in Canada has an implicit price cap: traders are willing to pay no more than the overnight interest rate to borrow a bond. This suggests the probability of a shortage increases when interest rates are very low. Content Type(s): Staff research, Staff analytical notes Research Topic(s): Financial markets JEL Code(s): G, G1, G10, G12
Frictional Capital Reallocation I: Ex Ante Heterogeneity Staff Working Paper 2019-4 Randall Wright, Sylvia Xiaolin Xiao, Yu Zhu This paper studies dynamic general equilibrium models where firms trade capital in frictional markets. Gains from trade arise due to ex ante heterogeneity: some firms are better at investment, so they build capital in the primary market; others acquire it in the secondary market. Content Type(s): Staff research, Staff working papers Research Topic(s): Monetary policy JEL Code(s): E, E2, E22, E4, E44
Can Capital Deepening Explain the Global Decline in Labor’s Share? Staff Working Paper 2019-3 Andrew Glover, Jacob Short We estimate an aggregate elasticity of substitution between capital and labor near or below one, which implies that capital deepening cannot explain the global decline in labor's share. Our methodology derives from transition paths in the neo-classical growth model. Content Type(s): Staff research, Staff working papers Research Topic(s): Firm dynamics, International topics, Labour markets JEL Code(s): E, E1, E13, E2, E22, E25, J, J3
January 10, 2019 Bank of Canada publishes the Canadian Alternative Reference Rate Working Group principles for enhancements to fallback language The Bank of Canada today published the Canadian Alternative Reference Rate Working Group (CARR) principles for enhancements to fallback language for cash products. Content Type(s): Press, Market notices Source(s): Canadian Alternative Reference Rate Working Group