BISPaper
Analytical shortcut solves dynamic distribution in fixed cost models
A Kansas City Fed working paper provides an analytical solution to the Kolmogorov forward equation for fixed cost models.
AI Paper Curation
BDFPaper
Climate stress tests raise spreads for new high emitters by 10bp
Participating in the ECB climate stress test led euro area banks to reallocate credit away from carbon-intensive clients and charge 10 basis points higher spreads on new high-emitting borrowers, according to a Banque de France study of over two million loan records.
BISPaper
Repo markets: efficient and fragile for the same reasons
A multi-central bank study shows that the 16 trillion dollar global repo market provides essential liquidity while harboring acute structural vulnerabilities.
BISPaper
Rising complexity premia explain four decades of US wage inequality
A Federal Reserve Board study shows that occupational problem-solving complexity strongly predicts US wage growth since 1980.
BISPaper
AI growth increases US output volatility by 2.8 percent
A Kansas City Fed working paper finds that artificial intelligence development is concentrated in volatile occupations and has increased US output volatility by 2.8 percent, roughly 3.5 times the impact of the 1990s IT boom.
BISPaper
BISPaper
Zoning expanded single-family land share and raised lot sizes
A Federal Reserve Bank of Philadelphia working paper shows that historical zoning regulations in Cook County systematically expanded single-family land use while reducing apartments and mixed-use commercial space between 1921 and 1980.
BISPaper
Deflation and rigid wage setting suppress Japanese real pay gains
A Bank of Japan working paper shows that prolonged deflation and labor market frictions suppressed Japanese real wage growth over the past three decades.
BOEPaper
Cloud adoption boosts small bank market share and depositor welfare
Cloud outsourcing reduces technological barriers in banking, driving deposit growth for smaller UK institutions and raising depositor welfare by 11.2 percent, according to a Bank of England working paper.
FEDPaper
Occupational complexity explains four decades of U.S. wage inequality
A Federal Reserve Board paper reveals that occupational problem complexity drives U.S. wage inequality growth since 1980.
BOJPaper
Downward wage rigidity and deflation widen wage-productivity gap
A Bank of Japan working paper shows that downward nominal wage rigidity combined with prolonged deflation and job security preferences widened Japan's wage-productivity gap over the past 30 years.
BISPaper
AI diffusion lowers industry concentration after initial rise
A Federal Reserve Bank of San Francisco working paper finds a hump-shaped relationship between artificial intelligence adoption and industry concentration.