Search

Content Types

Subjects

Authors

Research Themes

JEL Codes

Sources

Published After

Published Before

2138 Results

Inference in Games Without Nash Equilibrium: An Application to Restaurants’ Competition in Opening Hours

Staff working paper 2018-60 Erhao Xie
This paper relaxes the Bayesian Nash equilibrium (BNE) assumption commonly imposed in empirical discrete choice games with incomplete information. Instead of assuming that players have unbiased/correct expectations, my model treats a player’s belief about the behavior of other players as an unrestricted unknown function. I study the joint identification of belief and payoff functions.

Are Bank Bailouts Welfare Improving?

Staff working paper 2021-56 Malik Shukayev, Alexander Ueberfeldt
Financial sector bailouts, while potentially beneficial during a crisis, might lead to excessive risk taking if anticipated. Taking expectations and aggregate risk implications into account, we show that bailouts can be welfare improving, but only if capital adequacy constraints are sufficiently tight.

Forecasting Risks to the Canadian Economic Outlook at a Daily Frequency

Staff discussion paper 2023-19 Chinara Azizova, Bruno Feunou, James Kyeong
This paper quantifies tail risks in the outlooks for Canadian inflation and real GDP growth by estimating their conditional distributions at a daily frequency. We show that the tail risk probabilities derived from the conditional distributions accurately reflect realized outcomes during the sample period from 2002 to 2022.

Price Discounts and Cheapflation During the Post-Pandemic Inflation Surge

Staff working paper 2024-31 Alberto Cavallo, Oleksiy Kryvtsov
We study how price variation within a store changes with inflation, and whether households exploit these changes to reduce the burden of inflation. We find that price changes from discounts mitigated the inflation burden while cheapflation exacerbated it.

Channels of Transmission: How Mortgage Rates Affect House Prices and Rents in Canada

Staff analytical paper 2026-2 Nishaad Rao, Tao Wang
We use Canadian data to examine how monetary policy affects house prices and the consumer price index for rent through exogenous changes in the mortgage interest rates. It finds that the price and rent impacts operate through various channels and that these impacts vary by region.

Adverse Selection with Heterogeneously Informed Agents

Staff working paper 2018-7 Mohammad Davoodalhosseini
A model of over-the-counter markets is proposed. Some asset buyers are informed in that they can identify high quality assets. Heterogeneous sellers with private information choose what type of buyers they want to trade with.

On the Evolution of the United Kingdom Price Distributions

We propose a functional principal components method that accounts for stratified random sample weighting and time dependence in the observations to understand the evolution of distributions of monthly micro-level consumer prices for the United Kingdom (UK).

What COVID-19 revealed about the resilience of bond funds

Staff analytical note 2020-18 Guillaume Ouellet Leblanc, Ryan Shotlander
The liquidity management strategies of fund managers, supported by policy measures, have helped bond funds limit the increase in redemptions caused by COVID 19. This avoided further deterioration in liquidity in bond markets. Nevertheless, these funds were left with lower cash buffers, which could make them more vulnerable to additional large redemptions.

Estimating Policy Functions in Payments Systems Using Reinforcement Learning

We demonstrate the ability of reinforcement learning techniques to estimate the best-response functions of banks participating in high-value payments systems—a real-world strategic game of incomplete information.
June 2, 2022

Economic progress report: Navigating a high inflation environment

Remarks (delivered virtually) Paul Beaudry Gatineau Chamber of Commerce Gatineau, Quebec
Bank of Canada Deputy Governor Paul Beaudry talks about the Bank’s latest interest rate announcement and the importance of keeping inflation expectations well anchored to prevent high inflation from becoming entrenched.
Go To Page