D - Microeconomics

• Uncertainty and the Specificity of Human Capital

  Staff Working Paper 2007-57 Martin Gervais, Igor Livshits, Césaire Meh

  This paper studies the choice between general and specific human capital. A trade-off arises because general human capital, while less productive, can easily be reallocated across firms.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models JEL Code(s): D, D9, D92, J, J2, J24, J4, J41, J6, J62

• Implications of Asymmetry Risk for Portfolio Analysis and Asset Pricing

  Staff Working Paper 2007-47 Fousseni Chabi-Yo, Dietmar Leisen, Eric Renault

  Asymmetric shocks are common in markets; securities' payoffs are not normally distributed and exhibit skewness. This paper studies the portfolio holdings of heterogeneous agents with preferences over mean, variance and skewness, and derives equilibrium prices.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial markets, Market structure and pricing JEL Code(s): C, C5, C52, D, D5, D58, G, G1, G11, G12

• Micro Foundations of Price-Setting Behaviour: Evidence from Canadian Firms

  Staff Working Paper 2007-31 Daniel de Munnik, Kuan Xu

  How do firms adjust prices in the marketplace? Do they tend to adjust prices infrequently in response to changes in market conditions? If so, why? These remain key questions in macroeconomics, particularly for central banks that work to keep inflation low and stable.

  Content Type(s): Staff research, Staff working papers Topic(s): Inflation and prices, Monetary policy transmission JEL Code(s): D, D4, D40, E, E3, E30, L, L1, L11

• Firms Dynamics, Bankruptcy Laws and Total Factor Productivity

  Staff Working Paper 2007-17 Hajime Tomura

  This paper analyzes endogenous fluctuations in total factor productivity (TFP) in a dynamic general equilibrium model with heterogeneous agents, and illustrates the interaction of credit market frictions, asset prices, the entry and exit of firms, and fluctuations in TFP in response to firm-level productivity and aggregate credit-market shocks. I also analyze the effect of bankruptcy and foreclosure laws on fluctuations in TFP through their effect on credit market frictions.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial stability, Productivity JEL Code(s): D, D2, D24, E, E4, E44, G, G3, G33

• Monetary Policy Committees in Action: Is There Room for Improvement?

  Staff Working Paper 2007-6 Philipp Maier

  More than 80 central banks use a committee to take monetary policy decisions. The composition of the committee and the structure of the meeting can affect the quality of the decision making.

  Content Type(s): Staff research, Staff working papers Topic(s): Central bank research, Monetary policy framework JEL Code(s): C, C9, C92, D, D7, D70, E, E5, E58