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2360
result(s)
The Costs of Point-of-Sale Payments in Canada
Staff Discussion Paper 2017-4
Anneke Kosse,
Heng Chen,
Marie-Hélène Felt,
Valéry Dongmo Jiongo,
Kerry Nield,
Angelika Welte
Using data from our 2014 cost-of-payments survey, we calculate resource costs for cash, debit cards and credit cards. For each payment method, we examine the total cost incurred by consumers, retailers, financial institutions and infrastructures, the Royal Canadian Mint and the Bank of Canada.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Financial institutions,
Payment clearing and settlement systems
JEL Code(s):
D,
D1,
D12,
D2,
D23,
D24,
E,
E4,
E41,
E42,
G,
G2,
G21,
L,
L2
Small‐Sample Tests for Stock Return Predictability with Possibly Non‐Stationary Regressors and GARCH‐Type Effects
Staff Working Paper 2017-10
Sermin Gungor,
Richard Luger
We develop a simulation-based procedure to test for stock return predictability with multiple regressors. The process governing the regressors is left completely free and the test procedure remains valid in small samples even in the presence of non-normalities and GARCH-type effects in the stock returns.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Econometric and statistical methods,
Financial markets
JEL Code(s):
C,
C1,
C12,
C3,
C32,
G,
G1,
G14
The Share of Systematic Variations in the Canadian Dollar—Part II
Staff Analytical Note 2017-1
Jean-Sébastien Fontaine,
Guillaume Nolin
This analytical note examines how much of the systematic variation in the Canadian dollar is attributable to its sensitivity to commodity prices. We introduce a new “oil” portfolio that captures systematic variations when the exchange rates of commodity exporters and commodity importers move in opposite directions.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Exchange rates
JEL Code(s):
F,
F3,
F31
Expropriation Risk and FDI in Developing Countries: Does Return of Capital Dominate Return on Capital?
Staff Working Paper 2017-9
M. Akhtaruzzaman,
Nathan Berg,
Christopher Hajzler
Previously reported effects of institutional quality and political risks on foreign direct investment (FDI) are mixed and, therefore, difficult to interpret. We present empirical evidence suggesting a relatively clear, statistically robust, and intuitive characterization.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Development economics,
International financial markets
JEL Code(s):
D,
D2,
D23,
F,
F2,
F21,
F23
Adoption Costs of Financial Innovation: Evidence from Italian ATM Cards
Staff Working Paper 2017-8
Kim Huynh,
Philipp Schmidt-Dengler,
Gregor W. Smith,
Angelika Welte
The discrete choice to adopt a financial innovation affects a household’s exposure to inflation and transactions costs. We model this adoption decision as being subject to an unobserved cost.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Econometric and statistical methods,
Financial services
JEL Code(s):
C,
C3,
C35,
D,
D1,
D14,
E,
E4,
E41
Banking Regulation and Market Making
Staff Working Paper 2017-7
David Cimon,
Corey Garriott
We model how securities dealers respond to regulations on leverage, position and liquidity such as those imposed by the Basel III framework. We show that while asset prices exhibit greater price impact, bid-ask spreads do not change and trading volumes may even increase.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Financial system regulation and policies,
Market structure and pricing
JEL Code(s):
G,
G1,
G14,
G2,
G20,
L,
L1,
L10
Optimal Capital Regulation
Staff Working Paper 2017-6
Stéphane Moyen,
Josef Schroth
We study constrained-efficient bank capital regulation in a model with market-imposed equity requirements. Banks hold equity buffers to insure against sudden loss of access to funding. However, in the model, banks choose to only partially self-insure because equity is privately costly.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Financial institutions,
Financial stability,
Financial system regulation and policies
JEL Code(s):
E,
E1,
E13,
E3,
E32,
E4,
E44
Canadian Bank Notes and Dominion Notes: Lessons for Digital Currencies
Staff Working Paper 2017-5
Ben Fung,
Scott Hendry,
Warren E. Weber
This paper studies the period in Canada when both private bank notes and government-issued notes (Dominion notes) were simultaneously in circulation. Because both of these notes shared many of the characteristics of today's digital currencies, the experience with these notes can be used to draw lessons about how digital currencies might perform.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Bank notes,
Digital currencies and fintech,
Financial services
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E58
Stability and Efficiency in Decentralized Two‐Sided Markets with Weak Preferences
Staff Working Paper 2017-4
Radoslav Raykov
Many decentralized markets are able to attain a stable outcome despite the absence of a central authority (Roth and Vande Vate, 1990). A stable matching, however, need not be efficient if preferences are weak. This raises the question whether a decentralized market with weak preferences can attain Pareto efficiency in the absence of a central matchmaker.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Economic models
JEL Code(s):
C,
C7,
C78,
D,
D6,
D61