C92 - Laboratory, Group Behavior - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-29T10:09:35+00:00Is Money Essential? An Experimental Approach
https://www.bankofcanada.ca/2023/07/staff-working-paper-2023-39/
Monetary theory says that money is essential if it helps to achieve better incentive-feasible outcomes. We test this in the laboratory.2023-07-28T14:43:21+00:00enIs Money Essential? An Experimental Approach2023-07-28Central bank researchEconomic modelsStaff Working Paper 2023-39https://www.bankofcanada.ca/wp-content/uploads/2023/07/swp2023-39.pdfStaff Working Paper 2023-39Janet Hua JiangPeter NormanDaniela PuzzelloBruno SultanumRandall WrightJuly 2023CC9C92EE4E5Pricing Indefinitely Lived Assets: Experimental Evidence
https://www.bankofcanada.ca/2023/04/staff-working-paper-2023-25/
We study the trading of an asset with bankruptcy risk. The traded price of the asset is, on average, 40% of the expected total dividend payments. We investigate which economic models can explain the low traded price.2023-04-24T14:52:48+00:00enPricing Indefinitely Lived Assets: Experimental Evidence2023-04-24Asset pricingFinancial marketsStaff Working Paper 2023-25https://www.bankofcanada.ca/wp-content/uploads/2023/04/swp2023-25.pdfStaff Working Paper 2023-25John DuffyJanet Hua JiangHuan XieApril 2023CC9C91C92DD8D81GG1G12Learning in a Complex World: Insights from an OLG Lab Experiment
https://www.bankofcanada.ca/2023/02/staff-working-paper-2023-13/
This paper brings novel insights into group coordination and price dynamics in complex environments. We implement a chaotic overlapping-generation model in the lab and find that group coordination is always on the steady state or on the two-cycle and that behavior is non-monotonic.2023-02-21T13:34:14+00:00enLearning in a Complex World: Insights from an OLG Lab Experiment2023-02-21Business fluctuations and cyclesEconomic modelsStaff Working Paper 2023-13https://www.bankofcanada.ca/wp-content/uploads/2023/02/swp2023-13.pdfStaff Working Paper 2023-13Cars HommesStefanie J. HuberDaria MininaIsabelle SalleFebruary 2023CC6C62C68C9C91C92EE1E13E7E70GG1G12G4G41Inflation, Output, and Welfare in the Laboratory
https://www.bankofcanada.ca/2023/02/staff-working-paper-2023-11/
We investigate the effect of inflation on output and welfare in the laboratory. Consistent with monetary theory, we find that inflation acts as a tax on monetary exchange and reduces output and welfare.2023-02-13T10:42:09+00:00enInflation, Output, and Welfare in the Laboratory2023-02-13Inflation and pricesInflation: costs and benefitsMonetary policyStaff Working Paper 2023-11https://www.bankofcanada.ca/wp-content/uploads/2023/02/swp2023-11.pdfStaff Working Paper 2023-11Janet Hua JiangDaniela PuzzelloCathy ZhangFebruary 2023CC9C92DD8D83EE4E40What to Target? Insights from a Lab Experiment
https://www.bankofcanada.ca/2021/10/staff-working-paper-2021-53/
In a laboratory experiment, we ask participants to predict inflation using three different policy regimes: inflation targeting—with and without greater communication of the target—average inflation targeting and price level targeting. We use participants’ predictions to compare the level and stability of inflation under each regime.2021-10-28T11:10:52+00:00enWhat to Target? Insights from a Lab Experiment2021-10-28Inflation targetsMonetary policy communicationsMonetary policy frameworkStaff Working Paper 2021-53https://www.bankofcanada.ca/wp-content/uploads/2021/10/swp2021-53.pdfStaff Working Paper 2021-53Isabelle SalleOctober 2021CC9C92EE3E31E5E52E7How Long is Forever in the Laboratory? Three Implementations of an Infinite-Horizon Monetary Economy
https://www.bankofcanada.ca/2021/04/staff-working-paper-2021-16/
Standard monetary models adopt an infinite horizon with discounting. Testing these models in the lab requires implementing this horizon within a limited time frame. We compare three approaches to such an implementation and discuss their relative advantages.2021-04-05T07:50:27+00:00enHow Long is Forever in the Laboratory? Three Implementations of an Infinite-Horizon Monetary Economy2021-04-05Central bank researchEconomic modelsInflation and pricesStaff Working Paper 2021-16https://www.bankofcanada.ca/wp-content/uploads/2021/04/swp2021-16.pdfHow Long is Forever in the Laboratory? Three Implementations of an Infinite-Horizon Monetary EconomyJanet Hua JiangDaniela PuzzelloCathy ZhangApril 2021CC9C92DD8D83EE4E40Ten Isn’t Large! Group Size and Coordination in a Large-Scale Experiment
https://www.bankofcanada.ca/2020/07/staff-working-paper-2020-30/
Economic activities typically involve coordination among a large number of agents. These agents have to anticipate what other agents think before making their own decisions.2020-07-08T10:14:21+00:00enTen Isn’t Large! Group Size and Coordination in a Large-Scale Experiment2020-07-08Financial marketsFinancial stabilityStaff Working Paper 2020-30https://www.bankofcanada.ca/wp-content/uploads/2020/07/swp2020-30.pdfStaff Working Paper 2020-30Jasmina ArifovicCars HommesAnita Kopányi-PeukerIsabelle SalleJuly 2020CC9C92DD8D83D9D90GG2G20Monetary 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 2019CC5C57C7C72C9C92Are Long-Horizon Expectations (De-)Stabilizing? Theory and Experiments
https://www.bankofcanada.ca/2019/08/staff-working-paper-2019-27/
Most models in finance assume that agents make trading plans over the infinite future. We consider instead that they are boundedly rational and may only form forecasts over a limited horizon.2019-08-01T10:19:48+00:00enAre Long-Horizon Expectations (De-)Stabilizing? Theory and Experiments2019-08-01Asset pricingCentral bank researchEconomic modelsFinancial marketsStaff Working Paper 2019-27https://www.bankofcanada.ca/wp-content/uploads/2019/08/swp2019-27.pdfAre Long-Horizon Expectations (De-)Stabilizing? Theory and ExperimentsGeorge EvansCars HommesIsabelle SalleBruce McGoughAugust 2019CC9C92DD8D84ECompeting Currencies in the Laboratory
https://www.bankofcanada.ca/2017/12/staff-working-paper-2017-53/
We investigate competition between two intrinsically worthless currencies as a result of decentralized interactions between human subjects. We design a laboratory experiment based on a simple two-country, two-currency search model to study factors that affect circulation patterns and equilibrium selection.2017-12-07T15:35:11+00:00enCompeting Currencies in the Laboratory2017-12-07Central bank researchDigital currencies and fintechStaff Working Paper 2017-53https://www.bankofcanada.ca/wp-content/uploads/2017/12/swp2017-53.pdfCompeting Currencies in the LaboratoryJanet Hua JiangCathy ZhangDecember 2017CC9C92DD8D83EE4E40