Firm dynamics

• Technology Adoption in Input-Output Networks

  Staff Working Paper 2019-51 Xintong Han, Lei Xu

  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.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, Firm dynamics, Productivity JEL Code(s): C, C6, C61, L, L2, L23, L8, L86, O, O1, O14, O3, O33

• What Do Survey Data Tell Us About US Businesses?

  Staff Working Paper 2019-45 Anmol Bhandari, Serdar Birinci, Ellen McGrattan, Kurt See

  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.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Business fluctuations and cycles, Firm dynamics JEL Code(s): C, C8, C83, E, E2, E22, H, H2, H25

• Amazon Effects in Canadian Online Retail Firm-Product-Level Data

  Staff Working Paper 2019-42 Alex Chernoff

  I use firm-product-level data for Canadian online retailers to study how product scope (the average number of product categories per firm) evolved from 1999 to 2012. During this period, product scope dropped monotonically from 59 to 5 product categories.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Firm dynamics, Service Sector JEL Code(s): D, D2, D22, L, L1, L11, L8, L81

• Trade Flows and Exchange Rates: Importers, Exporters and Products

  Staff Working Paper 2019-41 Michael Devereux, Wei Dong, Ben Tomlin

  Using highly disaggregated transaction-level trade data, we document the importance of new firm level trade partner relationships and the addition of new products to existing relationships in driving long-run import flows.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Exchange rates, Firm dynamics, International topics JEL Code(s): F, F1, F4

• Reassessing Trade Barriers with Global Value Chains

  Staff Working Paper 2019-19 Yuko Imura

  This paper provides a systematic, quantitative analysis of the short-run and long-run effects of various trade-restricting policies in the presence of global value chains and multinational production.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Business fluctuations and cycles, Firm dynamics, International topics, Trade Integration JEL Code(s): F, F1, F12, F13, F4, F41

• Financial Distress and Hedging: Evidence from Canadian Oil Firms

  Staff Discussion Paper 2019-4 Kun Mo, Farrukh Suvankulov, Sophie Griffiths

  The paper explores the link between financial distress and the commodity price hedging behaviour of Canadian oil firms.

  Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Financial markets, Firm dynamics JEL Code(s): G, G3, G32, Q, Q4, Q40

• Firm-level Investment Under Imperfect Capital Markets in Ukraine

  Staff Working Paper 2019-14 Oleksandr Shcherbakov

  This paper develops and estimates a model of firm-level fixed capital investment when firms face borrowing constraints.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Econometric and statistical methods, Economic models, Firm dynamics JEL Code(s): C, C6, C61, C63, D, D2, D24, G, G3, G31
• April 8, 2019

  Why Do Central Banks Care About Market Power?

  Presentation Carolyn A. Wilkins G7 conference hosted by Banque de France Paris, France

  Senior Deputy Governor Carolyn A. Wilkins discusses how the competitive landscape and digitalization affect monetary policy and why central banks care about market power.

  Content Type(s): Press, Speeches Topic(s): Firm dynamics, Inflation and prices, Labour markets, Market structure and pricing, Potential output, Productivity, Service Sector, Transmission of monetary policy

• Can Capital Deepening Explain the Global Decline in Labor’s Share?

  Staff Working Paper 2019-3 Andrew Glover, Jacob Short

  We estimate an aggregate elasticity of substitution between capital and labor near or below one, which implies that capital deepening cannot explain the global decline in labor's share. Our methodology derives from transition paths in the neo-classical growth model.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Firm dynamics, International topics, Labour markets JEL Code(s): E, E1, E13, E2, E22, E25, J, J3

• Financial Development Beyond the Formal Financial Market

  Staff Working Paper 2018-49 Lin Shao

  This paper studies the effects of financial development, taking into account both formal and informal financing. Using cross-country firm-level data, we document that informal financing is utilized more by rich countries than poor countries.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial markets, Firm dynamics, Productivity JEL Code(s): E, E4, E44, O, O1, O17, O4, O47