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676 Results

How Important Are Liquidity Constraints for Canadian Households? Evidence from Micro-Data

Staff Discussion Paper 2012-9 Umar Faruqui, Samah Torchani
Using a unique micro-dataset containing real and financial information on Canadian households for 2000–07, the authors address two questions: (1) What is the proportion of households whose consumption displays excess sensitivity to income, and who are likely liquidity constrained?
Content Type(s): Staff research, Staff discussion papers Research Topic(s): Economic models, Sectoral balance sheet JEL Code(s): C, C3, C35, D, D1, D12, D3, D30

How Changes in Oil Prices Affect the Macroeconomy

Staff Working Paper 2009-33 Brian DePratto, Carlos De Resende, Philipp Maier
We estimate a New Keynesian general-equilibrium open economy model to examine how changes in oil prices affect the macroeconomy. Our model allows oil price changes to be transmitted through temporary demand and supply channels (affecting the output gap), as well as through persistent supply side effects (affecting trend growth).

The Political Impact of Immigration: Evidence from the United States

Staff Working Paper 2018-19 Anna Maria Mayda, Giovanni Peri, Walter Steingress
In this paper we study the impact of immigration to the United States on the vote for the Republican Party by analyzing county-level data on election outcomes between 1990 and 2010. Our main contribution is to separate the effect of high-skilled and low-skilled immigrants, by exploiting the different geography and timing of the inflows of these two groups of immigrants.
Content Type(s): Staff research, Staff working papers Research Topic(s): International topics, Labour markets JEL Code(s): F, F2, F22, J, J6, J61

Optimization in a Simulation Setting: Use of Function Approximation in Debt Strategy Analysis

Staff Working Paper 2007-13 David Bolder, Tiago Rubin
The stochastic simulation model suggested by Bolder (2003) for the analysis of the federal government's debt-management strategy provides a wide variety of useful information. It does not, however, assist in determining an optimal debt-management strategy for the government in its current form.

Long-Term Determinants of the Personal Savings Rate: Literature Review and Some Empirical Results for Canada

Staff Working Paper 2000-3 Gilles Bérubé, Denise Côté
This paper examines the structural determinants of the personal savings rate in Canada over the last 30 years, using cointegration techniques. The main finding is that the real interest rate, expected inflation, the ratio of the all-government fiscal balances to nominal GDP, and the ratio of household net worth to personal disposable income are the most […]
Content Type(s): Staff research, Staff working papers Research Topic(s): Domestic demand and components JEL Code(s): C, C2, C22, E, E2, E21
August 15, 2001

Analyzing the Monetary Aggregates

In recent years, the Bank has put renewed emphasis on analyzing monetary variables and on developing models that incorporate money as an active part of the transmission mechanism. In this article, Dinah Maclean describes how the monetary aggregates are used in the formulation of monetary policy analysis at the Bank, outlining the key tools and models used. The most important money-based model currently in use is the M1-VECM. In this model, deviations in the money supply from the long-term demand for money cause changes in inflation. The author briefly describes the "active-money" paradigm underlying this model and explains the key equations within it. Other simpler empirical models are also outlined, including single-equation indicator models for output based on the narrow aggregates, a neural network, and a model based on the broader aggregate M2++. A detailed technical annex provides details on model equations and coefficient values.
Content Type(s): Publications, Bank of Canada Review articles Research Topic(s): Monetary aggregates

What Drags and Drives Mobility: Explaining Canada’s Aggregate Migration Patterns

Staff Working Paper 2012-28 David Amirault, Daniel de Munnik, Sarah Miller
Using census data at the economic region level from 1991 to 2006 and a gravity model framework, this paper examines the factors that influence migration within Canada.

Centralizing Over-the-Counter Markets?

Staff Working Paper 2021-39 Jason Allen, Milena Wittwer
Would a shift in trading in fixed-income markets—from over the counter (bilateral trading) to a centralized electronic platform—improve welfare? We use trade-level data on the secondary market for Government of Canada debt to answer this question.
Content Type(s): Staff research, Staff working papers Research Topic(s): Financial institutions, Market structure and pricing JEL Code(s): D, D4, D40, D47, G, G1, G10, G2, G20, L, L1, L10
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