Staff working papers - Bank of Canada
https://www.bankofcanada.ca/rss-feeds/
Bank of Canada RSS Feedsen2024-03-28T23:06:12+00:00Monetary Policy and Government Debt Dynamics Without Commitment
https://www.bankofcanada.ca/2019/12/staff-working-paper-2019-52/
I show that maturity considerations affect the optimal conduct of monetary and fiscal policy during a period of government debt reduction. I consider a New Keynesian model and study a dynamic game of monetary and fiscal policy authorities without commitment, characterizing the incentives that drive the choice of interest rate.2019-12-30T09:16:41+00:00enMonetary Policy and Government Debt Dynamics Without Commitment2019-12-30Fiscal policyMonetary policyStaff Working Paper 2019-52https://www.bankofcanada.ca/wp-content/uploads/2019/12/swp2019-52.pdfMonetary Policy and Government Debt Dynamics Without CommitmentDmitry MatveevDecember 2019EE5E52E6E62E63Technology Adoption in Input-Output Networks
https://www.bankofcanada.ca/2019/12/staff-working-paper-2019-51/
We study how input-output networks affect the speed of technology adoption. In particular, we model the decision to adopt the programming language Python 3 by software packages. Python 3 provides advanced features but is not backward compatible with Python 2, which implies it comes with adoption costs.2019-12-23T15:39:25+00:00enTechnology Adoption in Input-Output Networks2019-12-23Economic modelsFirm dynamicsProductivityStaff Working Paper 2019-51https://www.bankofcanada.ca/wp-content/uploads/2019/12/swp2019-51.pdfTechnology Adoption in Input-Output NetworksXintong HanLei XuDecember 2019CC6C61LL2L23L8L86OO1O14O3O33Monetary Payoff and Utility Function in Adaptive Learning Models
https://www.bankofcanada.ca/2019/12/staff-working-paper-2019-50/
When players repeatedly face an identical or similar game (e.g., coordination game, technology adoption game, or product choice game), they may learn through experience to perform better in the future. This learning behaviour has important economic implications.2019-12-20T15:53:25+00:00enMonetary Payoff and Utility Function in Adaptive Learning Models2019-12-20Econometric and statistical methodsEconomic modelsStaff Working Paper 2019-50https://www.bankofcanada.ca/wp-content/uploads/2019/12/swp2019-50.pdfMonetary Payoff and Utility Function in Adaptive Learning ModelsErhao XieDecember 2019CC5C57C7C72C9C92On the Evolution of Multiple Jobholding in Canada
https://www.bankofcanada.ca/2019/12/staff-working-paper-2019-49/
The number of workers who hold more than one job (a.k.a. multiple jobholders) has increased recently in Canada. While this seems to echo the view that non-standard work arrangements are becoming pervasive, the increase has in fact been trivial compared with the long-run rise of multiple jobholding that has occurred since the mid-1970s.2019-12-19T13:34:31+00:00enOn the Evolution of Multiple Jobholding in Canada2019-12-19Econometric and statistical methodsLabour marketsStaff Working Paper 2019-49https://www.bankofcanada.ca/wp-content/uploads/2019/12/swp2019-49.pdfOn the Evolution of Multiple Jobholding in CanadaOlena KostyshynaEtienne LaléDecember 2019EE2E24JJ2J21J22J6J60Model Uncertainty and Wealth Distribution
https://www.bankofcanada.ca/2019/12/staff-working-paper-2019-48/
This paper studies the implications of model uncertainty for wealth distribution in a tractable general equilibrium model with a borrowing constraint and robustness à la Hansen and Sargent (2008). Households confront model uncertainty about the process driving the return of the risky asset, and they choose robust policies.2019-12-17T08:29:50+00:00enModel Uncertainty and Wealth Distribution2019-12-17Asset pricingBusiness fluctuations and cyclesEconomic modelsStaff Working Paper 2019-48https://www.bankofcanada.ca/wp-content/uploads/2019/12/swp2019-48.pdfModel Uncertainty and Wealth DistributionEdouard DjeutemShaofeng XuDecember 2019DD3D8EE2Loan Insurance, Market Liquidity, and Lending Standards
https://www.bankofcanada.ca/2019/12/staff-working-paper-2019-47/
We examine loan insurance—credit risk transfer upon origination—in a model in which lenders can screen, learn loan quality over time, and can sell loans. Some lenders with low screening ability insure, benefiting from higher market liquidity of insured loans while forgoing the option to exploit future information about loan quality.2019-12-09T13:55:35+00:00enLoan Insurance, Market Liquidity, and Lending Standards2019-12-09Financial institutionsFinancial marketsFinancial system regulation and policiesStaff Working Paper 2019-47https://www.bankofcanada.ca/wp-content/uploads/2019/12/swp2019-47.pdfLoan Insurance, Market Liquidity, and Lending StandardsToni AhnertMartin KunclDecember 2019GG0G01G2G21G28Extreme Downside Risk in Asset Returns
https://www.bankofcanada.ca/2019/12/staff-working-paper-2019-46/
Financial markets can experience sudden and extreme downward movements. Investors are highly concerned about the performance of their assets in such scenarios. Some assets perform badly in a downturn in the market; others have milder reactions.2019-12-06T09:33:41+00:00enExtreme Downside Risk in Asset Returns2019-12-06Asset pricingEconometric and statistical methodsStaff Working Paper 2019-46https://www.bankofcanada.ca/wp-content/uploads/2019/12/SWP2019-46.pdfExtreme Downside Risk in Asset ReturnsLerby ErgunDecember 2019CC1C14GG1G11G12What Do Survey Data Tell Us About US Businesses?
https://www.bankofcanada.ca/2019/12/staff-working-paper-2019-45/
This paper examines the reliability of survey data on business incomes, valuations, and rates of return, which are key inputs for studies of wealth inequality and entrepreneurial choice.2019-12-05T10:43:32+00:00enWhat Do Survey Data Tell Us About US Businesses?2019-12-05Business fluctuations and cyclesFirm dynamicsStaff Working Paper 2019-45https://www.bankofcanada.ca/wp-content/uploads/2019/12/swp2019-45.pdfWhat Do Survey Data Tell Us About US Businesses?Anmol BhandariSerdar BirinciEllen McGrattanKurt SeeDecember 2019CC8C83EE2E22HH2H25Interconnected Banks and Systemically Important Exposures
https://www.bankofcanada.ca/2019/11/staff-working-paper-2019-44/
How do banks' interconnections in the euro area contribute to the vulnerability of the banking system? We study both the direct interconnections (banks lend to each other) and the indirect interconnections (banks are exposed to similar sectors of the economy). These complex linkages make the banking system more vulnerable to contagion risks.2019-11-20T07:41:59+00:00enInterconnected Banks and Systemically Important Exposures2019-11-20Financial stabilityStaff Working Paper 2019-44https://www.bankofcanada.ca/wp-content/uploads/2019/11/swp2019-44.pdfInterconnected Banks and Systemically Important ExposuresAlan RoncoroniStefano BattistonMarco D’ErricoGrzegorz HalajChristoffer KokNovember 2019CC6C63GG1G15G2G21A Macroprudential Theory of Foreign Reserve Accumulation
https://www.bankofcanada.ca/2019/10/staff-working-paper-2019-43/
This paper proposes a theory of foreign reserves as macroprudential policy. We study an open-economy model of financial crises in which pecuniary externalities lead to overborrowing, and show that by accumulating international reserves, the government can achieve the constrained-efficient allocation.2019-10-03T11:50:21+00:00enA Macroprudential Theory of Foreign Reserve Accumulation2019-10-03Balance of payments and componentsFinancial stabilityFinancial system regulation and policiesForeign reserves managementInternational financial marketsStaff Working Paper 2019-43https://www.bankofcanada.ca/wp-content/uploads/2019/10/swp2019-43.pdfA Macroprudential Theory of Foreign Reserve AccumulationFernando ArceJulien BenguiJavier BianchiOctober 2019DD5D52D6D62FF3F34