The Carrot and the Stick: The Business Cycle Implications of Incentive Pay in the Labor Search Model Staff Working Paper 2015-35 Julien Champagne This paper considers a real business cycle model with labor search frictions where two types of incentive pay are explicitly introduced following the insights from the micro literature on performance pay (e.g. Lazear, 1986). Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Labour markets JEL Code(s): E, E2, E24, J, J3, J33, J4, J41
Heterogeneity in the Dynamic Effects of Uncertainty on Investment Staff Working Paper 2015-34 Sungje Byun, Soojin Jo How does aggregate profit uncertainty influence investment activity at the firm level? We propose a parsimonious adaptation of a factor-autoregressive conditional heteroscedasticity model to exploit information in a subindustry sales panel for an efficient and tractable estimation of aggregate volatility. Content Type(s): Staff research, Staff working papers Topic(s): Domestic demand and components, Econometric and statistical methods, International topics JEL Code(s): C, C2, C22, C23, D, D8, D80, E, E2, E22
September 9, 2015 Bank of Canada Unveils and Issues Commemorative $20 Bank Note Media Relations Ottawa, Ontario At an official ceremony at Rideau Hall, the Bank of Canada today unveiled and issued a special commemorative $20 bank note honouring Her Majesty Queen Elizabeth II. As of this day, Elizabeth II’s reign exceeds that of her great-great-grandmother, Queen Victoria, making Her Majesty the longest-reigning sovereign in Canada’s modern era. Content Type(s): Press, Press releases
August 28, 2015 Quarterly Financial Report - Second Quarter 2015 Quarterly Financial Report - Second Quarter 2015 - For the period ended 30 June 2015 Content Type(s): Publications, Quarterly Financial Report
Decomposing Movements in U.S. Non-Energy Import Market Shares Staff Discussion Paper 2015-5 Russell Barnett, Karyne B. Charbonneau Country market shares of U.S. non-energy imports have changed considerably since 2002, with varying volatility across three subperiods: pre-crisis (2002–07), crisis (2007–09) and post-crisis (2009–14). In this paper, we analyze market shares for four main trading partners of the United States (Canada, Mexico, China and Japan). Content Type(s): Staff research, Staff discussion papers Topic(s): International topics JEL Code(s): F, F1, F10, F14, F4
Cheap But Flighty: How Global Imbalances Create Financial Fragility Staff Working Paper 2015-33 Enrico Perotti, Toni Ahnert We analyze how a wealth shift to emerging countries may lead to instability in developed countries. Investors exposed to expropriation risk are willing to pay a safety premium to invest in countries with good property rights. Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability JEL Code(s): F, F3, G, G2
August 6, 2015 Completion of Public Consultation: Draft Terms for Auctions of Government of Canada Ultra-Long Bonds Following the release of the draft Terms for Auctions of Government of Canada Ultra-Long Bonds (proposal) by the Bank of Canada, a three-week consultation period, ending 10 July 2015, was held. Content Type(s): Press, Market notices
July 15, 2015 Release of the Monetary Policy Report Opening statement Stephen S. Poloz Ottawa, Ontario Press conference following the release of the Monetary Policy Report. Content Type(s): Press, Speeches and appearances, Opening statements Topic(s): Inflation and prices, Interest rates, Monetary policy, Monetary policy implementation, Recent economic and financial developments, Regional economic developments
July 6, 2015 Senior Loan Officer Survey - Second-Quarter 2015 The survey results suggest that, overall, business-lending conditions were broadly unchanged during the second quarter of 2015. Content Type(s): Publications, Senior Loan Officer Survey
Managerial Compensation Duration and Stock Price Manipulation Staff Working Paper 2015-25 Josef Schroth I build a model of optimal managerial compensation where managers each have a privately observed propensity to manipulate short-term stock prices. Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Labour markets, Recent economic and financial developments JEL Code(s): D, D8, D82, G, G1, G14, G3, G30, M, M1, M12