D - Microeconomics

• Order Submission: The Choice between Limit and Market Orders

  Staff Working Paper 2005-42 Ingrid Lo, Stephen Sapp

  Most financial markets allow investors to submit both limit and market orders, but it is not always clear what affects the choice of order type.

  Content Type(s): Staff research, Staff working papers Topic(s): Exchange rates, Financial institutions, Market structure and pricing JEL Code(s): D, D4, G, G1

• A Search Model of Venture Capital, Entrepreneurship, and Unemployment

  Staff Working Paper 2005-24 Robin Boadway, Oana Secrieru, Marianne Vigneault

  The authors develop a search model of venture capital in which the number of successful matches of entrepreneurs and venture capitalists (VCs) at any moment in time is a function of the number of entrepreneurs searching for funds, the number of VCs searching for entrepreneurs, and the number of vacancies posted by each VC.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Fiscal policy, Labour markets JEL Code(s): D, D8, D82, G, G1, G18, G2, G24, H, H2, H21, J, J6, J64

• Pocket Banks and Out-of-Pocket Losses: Links between Corruption and Contagion

  Staff Working Paper 2005-23 Raphael Solomon

  The author describes a model with a corrupt banking system, in which bankers knowingly lend at market interest rates to back projects riskier than the market rate indicates.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability JEL Code(s): D, D8, D82, G, G1, G19, G2, G21

• The Effects of the Exchange Rate on Investment: Evidence from Canadian Manufacturing Industries

  Staff Working Paper 2005-22 Tarek Harchaoui, Faouzi Tarkhani, Terence Yuen

  Using industry-level data for 22 Canadian manufacturing industries, the authors examine the relationship between exchange rates and investment during the period 1981–97.

  Content Type(s): Staff research, Staff working papers Topic(s): Domestic demand and components, Exchange rates JEL Code(s): D, D2, D24, F, F4

• La fonction de production et les données canadiennes

  Staff Working Paper 2005-20 Patrick Perrier

  This study has two aspects. First, the author examines the theoretical properties of the constant elasticity of substitution (CES) production function and the implications of this formulation for the properties of a structural macroeconomic model.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models JEL Code(s): D, D2, D24, E, E2, E23, O, O4, O40

• Lines of Credit and Consumption Smoothing: The Choice between Credit Cards and Home Equity Lines of Credit

  Staff Working Paper 2005-18 Shubhasis Dey

  The author models the choice between credit cards and home equity lines of credit (HELOCs) within a framework where consumers hold lines of credit as instruments of consumption smoothing across state and time.

  Content Type(s): Staff research, Staff working papers Topic(s): Credit and credit aggregates JEL Code(s): D, D1, D8, D81

• Risk Perceptions and Attitudes

  Staff Working Paper 2005-17 Miroslav Misina

  Changes in risk perception have been used in various contexts to explain shorter-term developments in financial markets, as part of a mechanism that amplifies fluctuations in financial markets, as well as in accounts of "irrational exuberance."

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Financial markets JEL Code(s): D, D8, D81, D84, G, G1, G12

• Efficiency and Economies of Scale of Large Canadian Banks

  Staff Working Paper 2005-13 Jason Allen, Ying Liu

  The authors measure the economies of scale of Canada's six largest banks and their costefficiency over time. Using a unique panel data set from 1983 to 2003, they estimate pooled translog cost functions and derive measures of relative efficiency and economies of scale.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions JEL Code(s): C, C3, C33, D, D2, D24, G, G2, G21

• Determinants of Borrowing Limits on Credit Cards

  Staff Working Paper 2005-7 Shubhasis Dey, Gene Mumy

  The difference between actual borrowings and borrowing limits alone generates information asymmetry in the credit card market.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Market structure and pricing JEL Code(s): C, C3, D, D4, D8, D82

• Monetary Policy under Model and Data-Parameter Uncertainty

  Staff Working Paper 2005-6 Gino Cateau

  Policy-makers in the United States over the past 15 to 20 years seem to have been cautious in setting policy: empirical estimates of monetary policy rules such as Taylor's (1993) rule are much less aggressive than those derived from optimizing models.

  Content Type(s): Staff research, Staff working papers Topic(s): Monetary policy and uncertainty JEL Code(s): D, D8, D81, E, E5, E58