E13 - Neoclassical

• Optimal Capital Regulation

  Staff Working Paper 2017-6 Stéphane Moyen, Josef Schroth

  We study constrained-efficient bank capital regulation in a model with market-imposed equity requirements. Banks hold equity buffers to insure against sudden loss of access to funding. However, in the model, banks choose to only partially self-insure because equity is privately costly.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Credit and credit aggregates, Financial Institutions, Financial stability, Financial system regulation and policies JEL Code(s): E, E1, E13, E3, E32, E4, E44

• Capital Flows to Developing Countries: Is There an Allocation Puzzle?

  Staff Working Paper 2016-53 Josef Schroth

  Foreign direct investment inflows are positively related to growth across developing countries—but so are savings in excess of investment. I develop an explanation for this well-established puzzle by focusing on the limited availability of consumer credit in developing countries together with general equilibrium effects.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Foreign reserves management, Interest rates, International financial markets JEL Code(s): E, E1, E13, E2, E21, F, F4, F43

• Business Cycles in Small, Open Economies: Evidence from Panel Data Between 1900 and 2013

  Staff Working Paper 2016-48 Wataru Miyamoto, Thuy Lan Nguyen

  Using a novel data set for 17 countries dating from 1900 to 2013, we characterize business cycles in both small developed and developing countries in a model with financial frictions and a common shock structure. We estimate the model jointly for these 17 countries using Bayesian methods.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Business fluctuations and cycles, Economic models, International topics JEL Code(s): E, E1, E13, E3, E32, F, F4, F41, F44

• 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.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Credit and credit aggregates, Financial stability, Financial system regulation and policies, Lender of last resort JEL Code(s): E, E1, E13, E3, E32, E4, E44

• Inflation and Unemployment in Competitive Search Equilibrium

  Staff Working Paper 2010-15 Mei Dong

  Using a monetary search model, Rocheteau, Rupert and Wright (2007) show that the relationship between inflation and unemployment can be positive or negative depending on the primitives of the model. The key features are indivisible labor, nonseparable preferences and bargaining.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Inflation: costs and benefits JEL Code(s): E, E1, E12, E13, E4, E40, E5, E52

• Working Time over the 20th Century

  Staff Working Paper 2006-18 Alexander Ueberfeldt

  From 1870 to 2000, the workweek length of employed persons decreased by 41 per cent in industrialized countries.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, Labour markets, Productivity JEL Code(s): E, E1, E13, E2, E24, O, O1, O11

• The Bank of Canada's New Quarterly Projection Model, Part 1. The Steady-State Model: SSQPM

  Technical Report No. 72 Richard Black, Douglas Laxton, David Rose, Robert Tetlow

  This report is the first documenting the Bank of Canada's new model of the Canadian economy, the Quarterly Projection Model (QPM). QPM is used at the Bank of Canada for both economic projections and policy analysis. Here the authors focus on the model's long-run properties, describing SSQPM, a model of the steady state of QPM […]

  Content Type(s): Technical Reports Topic(s): Economic models JEL Code(s): C, C5, C51, E, E1, E13