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2358
result(s)
Allocative Efficiency and the Productivity Slowdown
Staff Working Paper 2021-1
Lin Shao,
Rongsheng Tang
In our analysis of the US productivity slowdown in the 1970s and 2000s, we find that a significant portion of this deceleration can be attributed to a lack of improvement in allocative efficiency across sectors. Our analysis further identifies increased sector-level volatility as a major contributor to this lack of improvement in allocative efficiency.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models,
Productivity
JEL Code(s):
E,
E2,
E23,
O,
O4,
O47
Consumer Credit with Over-optimistic Borrowers
Staff Working Paper 2020-57
Florian Exler,
Igor Livshits,
James (Jim) C. MacGee,
Michèle Tertilt
When lenders cannot directly identify behavioural and rational borrowers, they use type scoring to track the likelihood of a borrower’s type. This leads to the partial pooling of borrowers, which results in rational borrowers subsidizing borrowing costs for behavioural borrowers. This, in turn, reduces the effectiveness of regulatory policies that target mistakes by behavioural borrowers.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Credit risk management,
Financial system regulation and policies
JEL Code(s):
E,
E2,
E21,
E4,
E49,
G,
G1,
G18,
K,
K3,
K35
Losing Contact: The Impact of Contactless Payments on Cash Usage
Staff Working Paper 2020-56
Marie-Hélène Felt
Contactless payment cards are a competitive alternative to cash. Using Canadian panel data from 2010 to 2017, this study investigates whether contactless credit cards are an important contributor to the decline in the transactional use of cash.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Econometric and statistical methods,
Financial services
JEL Code(s):
C,
C3,
C33,
D,
D1,
D12,
E,
E4,
E41
Implementation and Effectiveness of Extended Monetary Policy Tools: Lessons from the Literature
Staff Discussion Paper 2020-16
Grahame Johnson,
Sharon Kozicki,
Romanos Priftis,
Lena Suchanek,
Jonathan Witmer,
Jing Yang
This paper summarizes the literature on the performance of various extended monetary policy tools when conventional policy rates are constrained by the effective lower bound. We highlight issues that may arise when these tools are used by central banks of small open economies.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Monetary policy,
Monetary policy implementation,
Monetary policy transmission
JEL Code(s):
E,
E5,
E52,
E58,
E6,
E63
A Reference Guide for the Business Outlook Survey
Staff Discussion Paper 2020-15
David Amirault,
Naveen Rai,
Laurent Martin
The Business Outlook Survey (BOS) has become an important part of monetary policy deliberations at the Bank of Canada and is also well known in Canadian policy and financial circles. This paper compiles more than 20 years of experience conducting the BOS and serves as a comprehensive reference manual.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Firm dynamics,
Regional economic developments
JEL Code(s):
C,
C8,
C83,
D,
D2,
D22,
E,
E3,
E32
Strategic Uncertainty in Financial Markets: Evidence from a Consensus Pricing Service
Staff Working Paper 2020-55
Lerby Ergun,
Andreas Uthemann
We look at the informational content of consensus pricing in opaque over-the-counter markets. We show that the availability of price data informs participants mainly about other participants’ valuations, rather than about the value of a financial security.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial markets,
Market structure and pricing
JEL Code(s):
C,
C5,
C58,
D,
D5,
D53,
D8,
D83,
G,
G1,
G12,
G14
Labor Market Policies During an Epidemic
Staff Working Paper 2020-54
Serdar Birinci,
Fatih Karahan,
Yusuf Mercan,
Kurt See
We study the labour market and welfare effects of expanding unemployment insurance benefits and introducing payroll subsidies during the COVID-19 pandemic. We find that both policies are complementary and are beneficial to different types of workers. Payroll subsidies preserve the employment of workers in highly productive jobs, while unemployment insurance replaces lost income for workers who experience inevitable job loss.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Coronavirus disease (COVID-19),
Fiscal policy,
Labour markets
JEL Code(s):
E,
E2,
E24,
E6,
E62,
J,
J6,
J64
Can the Business Outlook Survey Help Improve Estimates of the Canadian Output Gap?
Staff Discussion Paper 2020-14
Calista Cheung,
Luke Frymire,
Lise Pichette
We investigate whether questions in the Bank of Canada’s Business Outlook Survey can provide useful signals for the output gap.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Business fluctuations and cycles,
Central bank research,
Economic models,
Monetary policy and uncertainty,
Potential output
JEL Code(s):
E,
E3
Towards a HANK Model for Canada: Estimating a Canadian Income Process
Staff Discussion Paper 2020-13
Iskander Karibzhanov
How might one simulate a million realistic income paths and compute their statistical moments in under a second? Using CUDA-based methods to estimate the Canadian earnings process, I find that the distribution of labour income growth is sharply peaked with heavy tails—similar to that in the United States.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Economic models,
Labour markets
JEL Code(s):
D,
D3,
D31,
E,
E2,
E24,
J,
J3,
J31