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


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.

Financial Crisis Resolution

Staff Working Paper 2012-42 Josef Schroth
This paper studies a dynamic version of the Holmstrom-Tirole model of intermediated finance. I show that competitive equilibria are not constrained efficient when the economy experiences a financial crisis. A pecuniary externality entails that banks’ desire to accumulate capital over time aggravates the scarcity of informed capital during the financial crisis.

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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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