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2126 Results

The Propagation of Regional Shocks in Housing Markets: Evidence from Oil Price Shocks in Canada

Staff working paper 2018-56 Lutz Kilian, Xiaoqing Zhou
How do global oil price shocks spread through Canada’s economy? With Canada’s regionally diverse economy in mind, we explore the implications of oil price shocks for Canadian housing markets and regional economies. We show that the belief that oil price shocks only matter in oil-rich regions is false.

Privacy-Enhancing Technologies for CBDC Solutions

Staff discussion paper 2025-1 Rakesh Arora, Han Du, Raza Ali Kazmi, Duc-Phong Le
Privacy-enhancing technologies (PETs) could offer solutions to safeguard end-user privacy and meet rigorous data protection standards for central bank digital currencies. We consider how PETs can transform privacy design in financial systems and the implications of their broader adoption.

Identifying Consumer-Welfare Changes when Online Search Platforms Change Their List of Search Results

Staff working paper 2020-5 Ryan Martin
Online shopping is often guided by search platforms. Consumers type keywords into query boxes, and search platforms deliver a list of products. Consumers' attention is limited, and exhaustive searches are often impractical.

Monetary Policy Transmission, Bank Market Power, and Wholesale Funding Reliance

Staff working paper 2023-35 Amina Enkhbold
I study how banking market concentration and reliance on wholesale funding affect monetary policy transmission to mortgage rates. I find that this transmission is imperfect and dampens the response of consumption, output, and housing prices.

Equity Option-Implied Probability of Default and Equity Recovery Rate

Staff working paper 2016-58 Bo Young Chang, Greg Orosi
There is a close link between prices of equity options and the default probability of a firm. We show that in the presence of positive expected equity recovery, standard methods that assume zero equity recovery at default misestimate the option-implied default probability.

Intermediary Market Power and Capital Constraints

Staff working paper 2023-51 Jason Allen, Milena Wittwer
We examine how intermediary capitalization affects asset prices in a framework that allows for intermediary market power. We introduce a model in which capital-constrained intermediaries buy or trade an asset in an imperfectly competitive market, and we show that weaker capital constraints lead to both higher prices and intermediary markups.

Credit Card Minimum Payment Restrictions

Staff working paper 2024-26 Jason Allen, Michael Boutros, Benedict Guttman-Kenney
We study a government policy that restricts repayment choices with the aim of reducing credit card debt and estimate its effects by applying a difference-in-differences methodology to comprehensive credit-reporting data about Canadian consumers. We find the policy has trade-offs: reducing revolving debt comes at a cost of reducing credit access, and potentially increasing delinquency.
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