Equilibrium in Two-Sided Markets for Payments: Consumer Awareness and the Welfare Cost of the Interchange Fee Staff working paper 2022-15 Kim Huynh, Gradon Nicholls, Oleksandr Shcherbakov We construct and estimate a structural two-stage model of equilibrium in a market for payments in order to quantify the network externalities and identify the main determinants of consumer and merchant decisions. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C5, C51, D, D1, D12, E, E4, E42, L, L1, L14 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Money and payments, Payment and financial market infrastructures, Retail payments
Can the Canadian International Investment Position Stabilize a Slowing Economy? Staff analytical note 2017-14 Maxime Leboeuf, Chen Fan In this note, we find that valuation effects can act as an important stabilizer, strengthening Canada’s net external wealth when its economic outlook worsens relative to that of other countries. Content Type(s): Staff research, Staff analytical notes JEL Code(s): F, F2, F21, F3, F32 Research Theme(s): Financial system, Financial stability and systemic risk, Structural challenges, International trade, finance and competitiveness
October 22, 2006 ToTEM: The Bank of Canada's New Projection and Policy-Analysis Model Bank of Canada Review - Autumn 2006 Paul Fenton, Stephen Murchison The Terms-of-Trade Economic Model, or ToTEM, replaced the Quarterly Projection Model (QPM) in December 2005 as the Bank's principal projection and policy-analysis model for the Canadian economy. Benefiting from advances in economic modelling and computer power, ToTEM builds on the strengths of QPM, allowing for optimizing behaviour on the part of firms and households, both in and out of steady state, in a multi-product environment. The authors explain the motivation behind the development of ToTEM, provide an overview of the model and its calibration, and present several simulations to illustrate its key properties, concluding with some indications of how the model is expected to evolve going forward. Content Type(s): Publications, Bank of Canada Review articles
October 6, 2016 Economic Trends and Monetary Policy Remarks Carolyn A. Wilkins Université du Québec à Trois-Rivières Trois-Rivières, Quebec Senior Deputy Governor Carolyn Wilkins talks about the major trends of the Canadian economy and how they affect monetary policy. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Monetary policy, Economic models, Economy/Economic growth, Inflation, Inflation targeting framework
Competing Currencies in the Laboratory Staff working paper 2017-53 Janet Hua Jiang, Cathy Zhang We investigate competition between two intrinsically worthless currencies as a result of decentralized interactions between human subjects. We design a laboratory experiment based on a simple two-country, two-currency search model to study factors that affect circulation patterns and equilibrium selection. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C9, C92, D, D8, D83, E, E4, E40 Research Theme(s): Financial markets and funds management, International markets and currencies, Models and tools, Economic models, Money and payments, Digital assets and fintech
The Evolution of Unobserved Skill Returns in the U.S.: A New Approach Using Panel Data 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 United States over the past few decades. To identify changes in the returns to unobserved skills, we make a novel assumption about the dynamics of skills (especially among older workers) rather than about the stability of skill distributions across cohorts, as is standard. Content Type(s): Staff research, Staff working papers JEL Code(s): C, C2, C23, J, J2, J24, J3, J31 Research Theme(s): Models and tools, Econometric, statistical and computational methods, Monetary policy, Real economy and forecasting, Structural challenges, Demographics and labour supply
February 10, 2021 Payments innovation beyond the pandemic Remarks (delivered virtually) Timothy Lane Institute for Data Valorisation Montréal, Quebec Deputy Governor Timothy Lane talks about how the Bank of Canada is contributing to the modernization of our payments ecosystem, and how the COVID-19 pandemic has highlighted the need to make payments more convenient for all Canadians. Content Type(s): Press, Speeches and appearances, Remarks Subject(s): Currency, Digital currency, Financial system, Financial markets, Fintech, Funds management
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 JEL Code(s): D, D2, D23, F, F2, F21, F23 Research Theme(s): Financial system, Financial stability and systemic risk, Structural challenges, International trade, finance and competitiveness
Examining the Impact of Home Purchase Restrictions on China’s Housing Market Staff working paper 2021-18 Zhentong Lu, Sisi Zhang, Jian Hong How do “cooling measures” in the housing market—policies aimed to stabilize prices—affect the market? We use a structural model of housing demand and price competition among developers to evaluate China’s home purchase restriction policies implemented in 2010–11. Content Type(s): Staff research, Staff working papers JEL Code(s): O, O1, O18, R, R3, R31, R38 Research Theme(s): Financial markets and funds management, Market structure, Financial system, Household and business credit, Monetary policy, Real economy and forecasting
December 14, 2009 Financial System Review - December 2009 Conditions in the international financial system have improved considerably since June in response to the forceful actions taken by policy-makers around the world.FSR Highlights - December 2009 Content Type(s): Publications, Financial Stability Report