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9272 Results

An Up-to-Date and Improved BVAR Model of the Canadian Economy

Staff Working Paper 1994-4 Daniel Racette, Jacques Raynauld, Christian Sigouin
In this paper, we estimate a fully optimized BVAR model of the Canadian economy for the period 1971-87. The model is well-adapted to the features of a small open economy. We show how it can be used as an input in the monetary policy process either as a forecasting instrument or an analytical tool.

Dynamic Employment and Hours Effects of Government Spending Shocks

Staff Working Paper 1999-1 Mingwei Yuan, Wenli Li
In this paper, we analyze the dynamic behaviour of employment and hours worked per worker in a stochastic general equilibrium model with a matching mechanism between vacancies and unemployed workers. The model is estimated for the United States using the Generalized Methods of Moments (GMM) estimation technique. An increase in government spending raises hours worked […]
Content Type(s): Staff research, Staff working papers Topic(s): Fiscal policy, Labour markets JEL Code(s): E, E2, E24, E3, E32, E6, E62, J, J6, J64

The Sale of Durable Goods by a Monopolist in a Stochastic Environment

Staff Working Paper 1998-18 Gabriel Srour
This paper examines the sale of durable goods by a monopolist in a stochastic partil equilibrium setting. It analyzes the responses of prices and output to various types of shocks and notes the differences with non-durable goods and competitive markets. It shows that behavior in this model with constant marginal costs of production is in […]
Content Type(s): Staff research, Staff working papers Topic(s): Market structure and pricing JEL Code(s): D, D4

Menu Costs, Relative Prices, and Inflation: Evidence for Canada

Staff Working Paper 1997-14 Robert Amano, Tiff Macklem
The menu-cost models of price adjustment developed by Ball and Mankiw (1994;1995) predict that short-run movements in inflation should be positively related to the skewness and the variance of the distribution of disaggregated relative-price shocks in each period. We test these predictions on Canadian data using the distribution of changes in disaggregated producer prices to measure the skewness and standard deviation of relative-price shocks.
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