D8 - Information, Knowledge, and Uncertainty

• 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

• 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

• 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