Research

• A Discussion of the Reliability of Results Obtained with Long-Run Identifying Restrictions

  Staff Working Paper 1998-4 Pierre St-Amant, David Tessier

  In a recent article, Faust and Leeper (1997) discuss reasons why inference from structural VARs identified with long-run restrictions may not be reliable. In this paper, the authors argue that there are reasons to believe that Faust and Leeper's arguments are not devastating in practice. First, simulation exercises suggest that this approach does well when […]

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods JEL Code(s): C, C3

• Tendance des dépenses publiques et de l'inflation et évolution comparative du taux de chômage au Canada et aux États-Unis

  Staff Working Paper 1998-3 Pierre St-Amant, David Tessier

  The authors' purpose in this paper is to isolate the respective contributions of budgetary and monetary policy in Canada and the United States to the behaviour of unemployment rates in the two countries. Their method consists of estimating VAR models and using long-term identification restrictions to perform a structural analysis. Budgetary policy shocks are defined […]

  Content Type(s): Staff research, Staff working papers Topic(s): Fiscal policy JEL Code(s): E, E6

• The Financial Services Sector: Past Changes and Future Prospects

  Technical Report No. 82 Charles Freedman, Clyde Goodlet

  The financial services industry has been undergoing significant change in recent years. This paper analyzes some key developments affecting the industry and examines some important issues facing the industry and its regulators.

  Content Type(s): Staff research, Technical reports Topic(s): Financial services JEL Code(s): G, G2

• The Canadian Banking System

  Technical Report No. 81 Charles Freedman

  This paper examines the major changes in the Canadian banking system since the Second World War, with special attention paid to the differences between Canadian and U.S. developments over this period.

  Content Type(s): Staff research, Technical reports Topic(s): Financial institutions JEL Code(s): G, G2

• International Borrowing, Specialization and Unemployment in a Small, Open Economy

  Staff Working Paper 1998-2 Patrick Osakwe, Shouyong Shi

  Empirical evidence suggests that the unemployment rate and the export/GNP ratio are positively correlated with external debt across developing countries. This paper develops a dynamic model that provides an explanation for the aforementioned relationships. The central idea of our paper is that international borrowing affects unemployment and specialization patterns by unevenly changing the risk-sharing structure—across […]

  Content Type(s): Staff research, Staff working papers Topic(s): International topics JEL Code(s): F, F3, J, J6

• Food Aid Delivery, Food Security and Aggregate Welfare in a Small Open Economy: Theory and Evidence

  Staff Working Paper 1998-1 Patrick Osakwe

  A small-open-economy model is developed to examine how the method of food aid disbursement affects labor employment, food security and aggregate welfare, in recipient countries, in an environment in which private sector firms pay efficiency wages to induce effort. Two forms of food aid delivery are considered: first is project food aid, under which food […]

  Content Type(s): Staff research, Staff working papers Topic(s): Development economics JEL Code(s): J, J4, O, O1, Q, Q1