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2333
result(s)
Learning in a Complex World: Insights from an OLG Lab Experiment
Staff Working Paper 2023-13
Cars Hommes,
Stefanie J. Huber,
Daria Minina,
Isabelle Salle
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.
The Role of Intermediaries in Selection Markets: Evidence from Mortgage Lending
Staff Working Paper 2023-12
Jason Allen,
Robert Clark,
Jean-François Houde,
Shaoteng Li,
Anna Trubnikova
This paper looks at the role mortgage brokers play in helping borrowers generate quotes and qualify for credit. We find that, on average, borrowers that engage with a mortgage broker pay lower interest rates. However, in about 15% of cases, borrowers are steered towards longer amortizing mortgages than they would have chosen absent a broker. Since mortgages with longer amortization have higher total interest costs over the entire life of the mortgage, this steering is expensive.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial services,
Market structure and pricing
JEL Code(s):
D,
D4,
G,
G2,
G21,
L,
L2
Inflation, Output, and Welfare in the Laboratory
Staff Working Paper 2023-11
Janet Hua Jiang,
Daniela Puzzello,
Cathy Zhang
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.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Inflation and prices,
Inflation: costs and benefits,
Monetary policy
JEL Code(s):
C,
C9,
C92,
D,
D8,
D83,
E,
E4,
E40
Exporting and Investment Under Credit Constraints
Staff Working Paper 2023-10
Kim Huynh,
Robert Petrunia,
Joel Rodrigue,
Walter Steingress
We examine the relationship between firms’ performance and credit constraints affecting export market entry. Using administrative Canadian firm-level data, our findings show that new exporters (a) increase their productivity, (b) raise their leverage ratio and (c) increase investment. We estimate that 48 percent of Canadian manufacturers face binding credit constraints when deciding whether to enter export markets.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Firm dynamics,
International topics,
Productivity
JEL Code(s):
F,
F1,
F10,
F14,
F3,
F36,
G,
G2,
G20,
G28,
G3,
G32
Central Bank Digital Currencies and Banking: Literature Review and New Questions
Staff Discussion Paper 2023-4
James Chapman,
Jonathan Chiu,
Mohammad Davoodalhosseini,
Janet Hua Jiang,
Francisco Rivadeneyra,
Yu Zhu
We review the nascent but fast-growing literature on central bank digital currencies (CBDCs), focusing on their potential impacts on private banks. We evaluate these impacts in three areas of traditional banking: payments, lending and liquidity and maturity transformation. We also take a broader look at CBDCs and highlight two promising directions for future research.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Central bank research,
Digital currencies and fintech,
Financial institutions,
Financial stability
JEL Code(s):
E,
E5,
E50,
E58,
G,
G0,
G00,
L,
L0,
L00
Introducing the Bank of Canada’s Market Participants Survey
Staff Analytical Note 2023-1
Annick Demers,
Tamara Gomes,
Stephane Gignac
The Market Participants Survey (MPS) gathers financial market participants’ expectations for key macroeconomic and financial variables and for monetary policy. This staff analytical note describes the MPS’s objectives and main features, its process and design, and how Bank of Canada staff use the results.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial markets,
Monetary policy and uncertainty,
Recent economic and financial developments
JEL Code(s):
C,
C8,
C83,
E,
E4,
E44,
E5,
E52,
E58,
G,
G1,
G12,
G14
Fiscal Stimulus and Skill Accumulation over the Life Cycle
Staff Working Paper 2023-9
Laure Simon
Using micro data from the U.S. Consumer Expenditure Survey and Current Population Survey, I document that government spending shocks affect individuals differently over the life cycle.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Fiscal policy,
Productivity
JEL Code(s):
D,
D1,
D12,
D15,
E,
E2,
E21,
E6,
E62,
J,
J1,
J11,
J2,
J24
Climate Variability and International Trade
Staff Working Paper 2023-8
Geoffrey R. Dunbar,
Walter Steingress,
Ben Tomlin
This paper quantifies the impact of hurricanes on seaborne international trade to the United States. Matching the timing of hurricane–trade route intersections with monthly U.S. port-level trade data, we isolate the unanticipated effects of a hurricane hitting a trade route using two separate identification schemes: an event study and a local projection.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Climate change,
International topics
JEL Code(s):
C,
C2,
C22,
C5,
F,
F1,
F14,
F18,
Q,
Q5,
Q54
Stress Relief? Funding Structures and Resilience to the Covid Shock
Staff Working Paper 2023-7
Kristin Forbes,
Christian Friedrich,
Dennis Reinhardt
Funding structures affected the amount of financial stress different countries and sectors experienced during the spread of COVID-19 in early 2020. Policy responses targeting specific vulnerabilities were more effective at mitigating this stress than those supporting banks or the economy more broadly.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Coronavirus disease (COVID-19),
Exchange rates,
Financial institutions,
Financial stability,
Financial system regulation and policies,
International topics
JEL Code(s):
E,
E4,
E44,
E6,
E65,
F,
F3,
F31,
F36,
F4,
F42,
G,
G1,
G18,
G2,
G23,
G3,
G38