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008210820t20212021oncd    ob   f|0| 0 eng d
040 |aCaOODSP|beng|erda|cCaOODSP
043 |an-cn---
0861 |aFB3-5/2021-12E-PDF
1001 |aLi, Jiaqi |c(Economist)|eauthor.
24510|aImperfect banking competition and macroeconomic volatility : |ba DSGE framework / |cby Jiaqi Li.
264 1|aOttawa, Ontario, Canada : |bBank of Canada = Banque du Canada, |c2021.
264 4|c©2021
300 |a1 online resource (ii, 50 pages) : |bcharts.
336 |atext|btxt|2rdacontent
337 |acomputer|bc|2rdamedia
338 |aonline resource|bcr|2rdacarrier
4901 |aStaff working paper = |aDocument de travail du personnel, |x1701-9397 ; |v2021-12
500 |a"Last updated: March 12, 2021."
504 |aIncludes bibliographical references (pages 47-50).
520 |a"This paper studies the impact of imperfect banking competition on aggregate fluctuations using a DSGE framework that features a Cournot banking sector. The paper highlights a new propagation mechanism of imperfect banking competition that operates via the dynamics of the expected marginal product of capital. Since capital is partly financed by bank loans, a higher expected return on capital implies that firms are more willing to borrow to invest in capital, making their capital and thus loan demand more inelastic. Market power enables banks to take advantage of the lower loan demand elasticity by charging a higher loan rate markup. Given that different shocks affect the dynamics of the expected return on capital differently, this paper finds that while the loan rate markup after a contractionary monetary policy shock increases and thus amplifies aggregate fluctuations, the impact of imperfect banking competition after a productivity shock is less clear and depends on the persistence of the shock"--Abstract, page ii.
650 0|aBusiness cycles|xEconometric models.
650 0|aInterest rates|xEconometric models.
650 6|aCycles économiques|xModèles économétriques.
650 6|aTaux d'intérêt|xModèles économétriques.
7102 |aBank of Canada, |eissuing body.
830#0|aStaff working paper (Bank of Canada)|v2021-12.|w(CaOODSP)9.806221
85640|qPDF|s882 KB|uhttps://publications.gc.ca/collections/collection_2021/banque-bank-canada/FB3-5-2021-12-eng.pdf