August 31, 2021 Research Update - August 2021 This monthly newsletter features the latest research publications by Bank of Canada economists including external publications and working papers published on the Bank of Canada’s website. Content Type(s): Staff research, Research newsletters
August 30, 2021 CARR Meeting (August 30, 2021) Content Type(s): Meetings Source(s): Canadian Alternative Reference Rate Working Group
Reaching for yield or resiliency? Explaining the shift in Canadian pension plan portfolios Staff Analytical Note 2021-20 Sébastien Betermier, Nicholas Byrne, Jean-Sébastien Fontaine, Hayden Ford, Jason Ho, Chelsea Mitchell “Reach for yield”—This is the commonly heard explanation for why pension plans shift their portfolios toward alternative assets. But we show that the new portfolios also hold more bonds, offer lower average returns and produce smaller and less volatile solvency deficits. These shifts are part of a broader strategy to reduce solvency risk. Content Type(s): Staff research, Staff analytical notes Topic(s): Financial institutions, Financial markets, Financial system regulation and policies JEL Code(s): G, G1, G11
August 23, 2021 Operational details for upcoming secondary market purchases of Government of Canada securities (August 30-September 10) As previously announced, the Bank of Canada (the Bank) launched on April 1, 2020 a program to purchase Government of Canada securities in the secondary market – the Government Bond Purchase Program (GBPP). Content Type(s): Press, Market notices Source(s): Government of Canada Bond Purchase Program
Household financial vulnerabilities and physical climate risks Staff Analytical Note 2021-19 Thibaut Duprey, Colin Jones, Callie Symmers, Geneviève Vallée Natural disasters occur more often than before, potentially exposing households to financial distress. We study the intersection between household financial vulnerabilities and severe weather events. Content Type(s): Staff research, Staff analytical notes Topic(s): Climate change, Credit and credit aggregates, Financial stability, Housing, Recent economic and financial developments JEL Code(s): C, C2, C21, C3, C38, D, D1, D14, Q, Q5, Q54
Fiscal Spillovers: The Case of US Corporate and Personal Income Taxes Staff Working Paper 2021-41 Madeline Hanson, Daniela Hauser, Romanos Priftis How do changes to personal and corporate income tax rates in the United States affect its trading partners? Spillover effects from cuts in the two taxes differ. They are generally small and negative for corporate taxes, but sizable and positive for personal income taxes. Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Exchange rate regimes, Fiscal policy, International topics JEL Code(s): E, E3, E32, E6, E62, F, F4, F44, H, H2, H20
Measuring the Effectiveness of Salespeople: Evidence from a Cold-Drink Market Staff Working Paper 2021-40 Haofeng Jin, Zhentong Lu Salespeople are widely employed in many industries. We leverage a unique data set on retail sales from a leading Chinese cold-drink manufacturer and information on the firm’s salespeople assignment rule to measure the causal effect of salespeople on product revenue. Content Type(s): Staff research, Staff working papers Topic(s): Labour markets, Service sector JEL Code(s): L, L8, L81, M, M3, M5
August 19, 2021 Quarterly Financial Report - Second Quarter 2021 Quarterly Financial Report - Second Quarter 2021 - For the period ended June 30, 2021 Content Type(s): Publications, Quarterly Financial Report