Staff working papers provide a forum for staff to publish work-in-progress research intended for journal publication.
1323
result(s)
An Investigation into the Effects of Border Carbon Adjustments on the Canadian Economy
Staff Working Paper 2023-27
Y.-H. Henry Chen,
Hossein Hosseini,
Craig Johnston,
Sergey Paltsev,
Marie-Christine Tremblay
We examine the economic implications of border carbon adjustments (BCAs) for Canada. We find that, BCAs, in the form of import tariffs, reduce Canada’s carbon leakage and improve its competitiveness when Canada is part of a broad coalition of BCA-implementing countries. Welfare also improves when tariff revenues are transferred to households.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Climate change,
International topics,
Trade integration
JEL Code(s):
C,
C6,
C68,
F,
F1,
H,
H2,
Q,
Q3,
Q37,
Q5
How Banks Create Gridlock to Save Liquidity in Canada's Large Value Payment System
Staff Working Paper 2023-26
Rodney J. Garratt,
Zhentong Lu,
Phoebe Tian
We show how participants in Canada’s new high-value payment system save liquidity by exploiting the new gridlock resolution arrangement. The findings have important implications for the design of these systems and shed light on financial institutions’ liquidity preference.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E42,
E5,
E58,
G,
G2,
G21
Pricing Indefinitely Lived Assets: Experimental Evidence
Staff Working Paper 2023-25
John Duffy,
Janet Hua Jiang,
Huan Xie
We study the trading of an asset with bankruptcy risk. The traded price of the asset is, on average, 40% of the expected total dividend payments. We investigate which economic models can explain the low traded price.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Asset pricing,
Financial markets
JEL Code(s):
C,
C9,
C91,
C92,
D,
D8,
D81,
G,
G1,
G12
From LVTS to Lynx: Quantitative Assessment of Payment System Transition
Staff Working Paper 2023-24
Ajit Desai,
Zhentong Lu,
Hiru Rodrigo,
Jacob Sharples,
Phoebe Tian,
Nellie Zhang
We quantitatively assess the changes in participants’ payment behaviour from modernizing Canada's high-value payments system to Lynx. Our analysis suggests that Lynx's liquidity-saving mechanism encourages liquidity pooling and early payments submission, resulting in improved efficiency for participants but with slightly increased payment delays.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial services,
Financial system regulation and policies,
Payment clearing and settlement systems
JEL Code(s):
C,
C1,
C10,
E,
E4,
E42,
G,
G2,
G28
Narrative-Driven Fluctuations in Sentiment: Evidence Linking Traditional and Social Media
Staff Working Paper 2023-23
Alistair Macaulay,
Wenting Song
News media present competing interpretations of what breaking news implies for the macroeconomy. Recent examples include news reporting on high inflation and yield curve inversions. Do these narratives shape macroeconomic sentiment? In this paper, we highlight the importance of narratives using evidence linking traditional media and social media.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial markets,
Inflation and prices,
Monetary policy
JEL Code(s):
D,
D8,
D84,
E,
E3,
E32,
E4,
E43,
E44,
E5,
G,
G1
The Impact of Unemployment Insurance and Unsecured Credit on Business Cycles
Staff Working Paper 2023-22
Michael Irwin
This paper studies how unsecured consumer credit impacts the extent to which unemployment insurance (UI) policies smooth aggregate consumption fluctuations over the business cycle. Using a general equilibrium real business cycle model, I find that unsecured credit amplifies the extent to which UI smooths cyclical consumption fluctuations.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Credit and credit aggregates,
Economic models,
Fiscal policy,
Labour markets
JEL Code(s):
E,
E2,
E21,
E24,
E3,
E32,
E4,
E44,
E6,
E62
Trade and Diffusion of Embodied Technology: An Empirical Analysis
Staff Working Paper 2023-21
Stephen Ayerst,
Faisal Ibrahim,
Gaelan MacKenzie,
Swapnika Rachapalli
Using data from patents, citations, inter-sectoral sales and customs, we examine the international diffusion of technology through imports of sectoral knowledge and production inputs. We develop an instrumental variable strategy to identify the causal effects of technology embodied in imports on innovation and diffusion outcomes.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Development economics,
International topics,
Productivity,
Trade integration
JEL Code(s):
F,
F1,
F14,
F6,
F61,
O,
O1,
O19,
O3,
O31,
O33
Demographic Origins of the Decline in Labor’s Share
Staff Working Paper 2023-20
Andrew Glover,
Jacob Short
Declining labour market dynamism of workers results in an increasing wedge between their earnings and their marginal product as they age. This wedge and the demographic shift in the earnings shares of older workers can account for 59% of the decline in labor’s share of earnings in the United States.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Labour markets,
Productivity
JEL Code(s):
D,
D3,
D33,
E,
E2,
E25,
J,
J1,
J3,
J6,
J62
Supply Drivers of US Inflation Since the COVID-19 Pandemic
Staff Working Paper 2023-19
Serdar Kabaca,
Kerem Tuzcuoglu
This paper examines the contribution of several supply factors to US headline inflation since the start of the COVID-19 pandemic. We identify six supply shocks using a structural VAR model: labor supply, labor productivity, global supply chain, oil price, price mark-up and wage mark-up shocks.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Econometric and statistical methods,
Inflation and prices
JEL Code(s):
C,
C3,
C32,
E,
E3,
E31,
E32