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2360
result(s)
Merchant Acceptance of Cash and Credit Cards at the Point of Sale
Staff Analytical Note 2018-1
Ben Fung,
Kim Huynh,
Kerry Nield,
Angelika Welte
Recent data show that the use of credit cards in Canada has been increasing, while the use of cash has been declining. At the same time, only two-thirds of small or medium-sized businesses accept credit cards.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Bank notes,
Digital currencies and fintech,
Econometric and statistical methods,
Financial services
JEL Code(s):
C,
C2,
D,
D1,
E,
E4,
E41
Capital-Goods Imports and US Growth
Staff Working Paper 2018-1
Michele Cavallo,
Anthony Landry
Capital-goods imports have become an increasing source of growth for the U.S. economy. To understand this phenomenon, we build a neoclassical growth model with international trade in capital goods in which agents face exogenous paths of total factor and investment-specific productivity measures.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Productivity,
Trade integration
JEL Code(s):
E,
E2,
F,
F2,
F4,
O,
O3,
O4
The Impacts of Minimum Wage Increases on the Canadian Economy
Staff Analytical Note 2017-26
Dany Brouillette,
Daniel Gao,
Olivier Gervais,
Calista Cheung
This note reviews the channels through which scheduled minimum wage increases over the coming years may affect Canadian economic activity and inflation and assesses their macroeconomic impacts. From reduced-form estimates of direct minimum wage pass-through, we find that consumer price index (CPI) inflation could be boosted by about 0.1 percentage point (pp) on average in 2018.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Labour markets,
Recent economic and financial developments
JEL Code(s):
E,
E2,
E24,
J,
J2,
J21,
J22,
J23
Wage Dynamics and Returns to Unobserved Skill
Staff Working Paper 2017-61
Lance Lochner,
Youngmin Park,
Youngki Shin
Economists disagree about the factors driving the substantial increase in residual wage inequality in the U.S. over the past few decades. We identify and estimate a general model of log wage residuals that incorporates: (i) changing returns to unobserved skills, (ii) a changing distribution of unobserved skills, and (iii) changing volatility in wages due to factors unrelated to skills.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Econometric and statistical methods,
Labour markets
JEL Code(s):
C,
C2,
C23,
J,
J2,
J24,
J3,
J31
Who Pays? CCP Resource Provision in the Post-Pittsburgh World
Staff Discussion Paper 2017-17
Jorge Cruz Lopez,
Mark Manning
At the Pittsburgh Summit in 2009, G20 countries announced their commitment to clear all standardized over-the-counter (OTC) derivatives through central counterparties (CCPs). Since then, CCPs have become increasingly important and there has been an extensive program of regulatory enhancements to both them and OTC derivatives markets.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Financial markets,
Financial stability,
Financial system regulation and policies
JEL Code(s):
G,
G0,
G01,
G2,
G28
Which Model to Forecast the Target Rate?
Staff Working Paper 2017-60
Bruno Feunou,
Jean-Sébastien Fontaine,
Jianjian Jin
Specifications of the Federal Reserve target rate that have more realistic features mitigate in-sample over-fitting and are favored in the data.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Interest rates
JEL Code(s):
E,
E4,
E43
Credit Risk Transfer and Bank Insolvency Risk
Staff Working Paper 2017-59
Maarten van Oordt
The present paper shows that, everything else equal, some transactions to transfer portfolio credit risk to third-party investors increase the insolvency risk of banks. This is particularly likely if a bank sells the senior tranche and retains a sufficiently large first-loss position.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit risk management,
Financial institutions,
Financial stability
JEL Code(s):
G,
G2,
G21,
G28,
G3,
G32
Variance Premium, Downside Risk and Expected Stock Returns
Staff Working Paper 2017-58
Bruno Feunou,
Ricardo Lopez Aliouchkin,
Roméo Tedongap,
Lai Xi
We decompose total variance into its bad and good components and measure the premia associated with their fluctuations using stock and option data from a large cross-section of firms.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Financial markets
JEL Code(s):
G,
G1,
G12
Credit Crunches from Occasionally Binding Bank Borrowing Constraints
Staff Working Paper 2017-57
Tom D. Holden,
Paul Levine,
Jonathan Swarbrick
We present a model in which banks and other financial intermediaries face both occasionally binding borrowing constraints and costs of equity issuance. Near the steady state, these intermediaries can raise equity finance at no cost through retained earnings.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Credit and credit aggregates,
Economic models,
Financial markets
JEL Code(s):
E,
E2,
E22,
E3,
E32,
E5,
E51,
G,
G2