D - Microeconomics

• Small and smaller: How the economic outlook of small firms relates to size

  Staff Analytical Note 2021-14 Chris D'Souza, James Fudurich, Farrukh Suvankulov

  Firms with fewer than 100 workers employ about 65 percent of the total labour force in Canada. An online survey experiment was conducted with firms of this size in Canada in 2018–19. We compare the responses of small and micro firms to explore how their characteristics and economic outlooks relate to their size.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Business fluctuations and cycles, Firm dynamics JEL Code(s): C, C8, C83, D, D2, D22, E, E3, E32

• The Effects of Government Licensing on E-commerce: Evidence from Alibaba

  Staff Working Paper 2021-32 Ginger Zhe Jin, Zhentong Lu, Xiaolu Zhou, Chunxiao Li

  How does government licensing affect selling on online platforms? We examine the impact of China’s 2015 Food Safety Law on sellers and buyers on Alibaba, the largest e-commerce platform in that country.

  Content Type(s): Staff research, Staff working papers Topic(s): Market structure and pricing, Recent economic and financial developments JEL Code(s): D, D8, D82, K, K2, K23, L, L5, L8, L81

• Analyzing supply and demand for business loans using microdata from the Senior Loan Officer Survey

  Staff Analytical Note 2021-13 Dylan Hogg

  Both supply and demand factors help determine the level of business lending in the economy, but most data show only their combined effect on prices and quantities. Using the Bank of Canada’s Senior Loan Officer Survey microdata on financial institutions’ lending conditions and demand, we separate supply from demand effects.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Credit and credit aggregates, Financial institutions, Financial stability JEL Code(s): D, D2, D22, G, G0, G01, G2

• Measuring and Evaluating Strategic Communications at the Bank of Canada

  Staff Discussion Paper 2021-9 Annie Portelance

  The Bank of Canada’s Communications Department has developed a framework to quantify and qualify the Bank’s communications efforts and their results. Using data-based measurement and evaluation, the department can assess the impact of the Bank’s communications activities and gauge the department’s contribution to the Bank’s overall goals.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Central bank research, Credibility, Monetary policy communications JEL Code(s): D, D8, D83

• An Empirical Analysis of Bill Payment Choices

  Staff Working Paper 2021-23 Anneke Kosse

  How do Canadians pay their bills? 2019 survey data collected from over 4,000 Canadian consumers show how people’s bill payment choices vary with consumer characteristics and types of bills. The data also reveal that many consumers feel limited in their choices, which suggests that preferences of billers might play an important role as well.

  Content Type(s): Staff research, Staff working papers Topic(s): Bank notes, Econometric and statistical methods, Financial services, Payment clearing and settlement systems JEL Code(s): D, D1, D9, G, G2

• Four Decades of Canadian Earnings Inequality and Dynamics Across Workers and Firms

  Staff Working Paper 2021-20 Audra Bowlus, Émilien Gouin-Bonenfant, Huju Liu, Lance Lochner, Youngmin Park

  We use four decades of Canadian matched employer-employee data to explore how inequality and the dynamics of individual earnings have evolved over time in Canada. We also examine how the earnings growth of individuals is related to the growth of their employers.

  Content Type(s): Staff research, Staff working papers Topic(s): Econometric and statistical methods, Firm dynamics, Labour markets, Potential output, Productivity JEL Code(s): D, D2, D22, D3, D31, E, E2, E24, J, J2, J24, J3, J31, J6, J63

• Adoption of Digital Technologies: Insights from a Global Survey Initiative

  Staff Discussion Paper 2021-7 James Fudurich, Lena Suchanek, Lise Pichette

  Firms are at the forefront of adopting new technology. Using survey data from a global network of central banks, we assess the effects of digitalization on firms’ pricing and employment decisions.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Firm dynamics, Inflation and prices, Labour markets JEL Code(s): D, D2, D22, E, E3, E31, J, J2, J21, O, O3, O33

• Update on housing market imbalances and household indebtedness

  Staff Analytical Note 2021-4 Mikael Khan, Olga Bilyk, Matthew Ackman

  Exceptional strength in the housing market during the pandemic is underpinning Canada’s economic recovery. However, two key vulnerabilities—housing market imbalances and elevated household indebtedness—have intensified.

  Content Type(s): Staff research, Staff analytical notes Topic(s): Coronavirus disease (COVID-19), Credit and credit aggregates, Financial stability, Housing, Recent economic and financial developments, Sectoral balance sheet JEL Code(s): D, D1, D14, D8, D84, E, E5, G, G2, G21, G28, R, R2, R21

• Stablecoin Assessment Framework

  Staff Discussion Paper 2021-6 Alejandro García, Bena Lands, Dennis Yanchus

  We offer relevant authorities a three-step assessment framework they can use to understand, identify and quantify the risks associated with stablecoin and other cryptocurrency arrangements.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Digital currencies and fintech, Financial institutions, Financial markets, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): D, D7, D78, D8, D81, G, G0, G01, G1, G18, O, O3, O38

• Trade and Market Power in Product and Labor Markets

  Staff Working Paper 2021-17 Gaelan MacKenzie

  Trade liberalizations increase the sales and input purchases of productive firms relative to their less productive domestic competitors. This reallocation affects firms’ market power in their product and input markets. I quantify how the labour market power of employers affects the distribution and size of the gains from trade.

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Labour markets, Market structure and pricing, Productivity, Trade integration JEL Code(s): D, D4, D43, F, F1, F12, F6, J, L, L1, L13