Josef Schroth

Senior Economist

Josef Schroth is a Senior Economist in the Financial Stability Department at the Bank of Canada. He is a macroeconomist whose primary research interests center on applying contract theory in market as well as non-market environments. Specific topics include financial market regulation and international policy coordination. Josef Schroth received his PhD in economics from UCLA.


Josef Schroth

Senior Economist
Financial Stability
Financial Studies

Bank of Canada
234 Laurier Avenue West
Ottawa, ON, K1A 0G9


Capital Flows to Developing Countries: Is There an Allocation Puzzle?

Staff Working Paper 2016-53 Josef Schroth
Foreign direct investment inflows are positively related to growth across developing countries—but so are savings in excess of investment. I develop an explanation for this well-established puzzle by focusing on the limited availability of consumer credit in developing countries together with general equilibrium effects.

Supervising Financial Regulators

Staff Working Paper 2016-52 Josef Schroth
How much discretion should local financial regulators in a banking union have in accommodating local credit demand? I analyze this question in an economy where local regulators privately observe expected output from high lending. They do not fully internalize default costs from high lending since deposit insurance cannot be priced fairly.

Financial Crisis Interventions

Staff Working Paper 2016-29 Josef Schroth
This paper develops a model of an economy where bank credit supports both productive investment and individual consumption smoothing in the face of idiosyncratic income risk. Bank credit is constrained by bank equity capital.

Risk Sharing in the Presence of a Public Good

Staff Working Paper 2015-27 Josef Schroth
This paper studies an economy where agents can spend resources on consuming a private good and on funding a public good. There is asymmetric information regarding agents’ relative preference for private versus public good consumption.

Managerial Compensation Duration and Stock Price Manipulation

Staff Working Paper 2015-25 Josef Schroth
I build a model of optimal managerial compensation where managers each have a privately observed propensity to manipulate short-term stock prices.

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Refereed journals

  • “Optimal Intermediary Rents.”
    American Economic Journal: Macroeconomics, vol. 8, No.1, p.98-118, (2016).


  • Ph.D. Economics, UCLA, 2011
  • MSc Economics and Econometrics, Southampton University, 2006
  • BSc Economics and Business, Goethe University Frankfurt, 2005

Research Interests

  • Macroeconomics
  • Contract theory
  • Financial economics


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