G51 - Household Saving, Borrowing, Debt, and Wealth - Bank of Canada
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Bank of Canada RSS Feedsen2024-03-28T11:35:12+00:00Modelling Canadian mortgage debt and payments in a semi-structural model
https://www.bankofcanada.ca/2024/01/staff-analytical-note-2024-1/
We show how Canadian mortgage debt dynamics can be modelled in a semi-structural macroeconomic model, such as the Bank of Canada’s LENS. The model we propose accounts for Canada’s unique mortgage debt structure.2024-01-08T11:16:48+00:00enModelling Canadian mortgage debt and payments in a semi-structural model2024-01-08Perceived versus Calibrated Income Risks in Heterogeneous-Agent Consumption Models
https://www.bankofcanada.ca/2023/12/staff-working-paper-2023-59/
Perceived income risks reported in a survey of consumer expectations are more heterogeneous and, on average, lower than indirectly calibrated risks based on panel data. They prove to be one explanation for why a large fraction of households hold very little liquid savings and why accumulated wealth is widely unequal across households.2023-12-27T11:44:56+00:00enPerceived versus Calibrated Income Risks in Heterogeneous-Agent Consumption Models2023-12-27Business fluctuations and cyclesMonetary policyMonetary policy and uncertaintyStaff Working Paper 2023-59https://www.bankofcanada.ca/wp-content/uploads/2023/12/swp2023-59.pdfPerceived versus Calibrated Income Risks in Heterogeneous-Agent Consumption ModelsTao WangDecember 2023DD1D14EE2E21E7E71GG5G51Unpacking Moving: A Quantitative Spatial Equilibrium Model with Wealth
https://www.bankofcanada.ca/2023/06/staff-working-paper-2023-34/
We propose a model to understand low observed migration rates by considering the interaction between location and wealth decisions. We look at different policies and find that temporary moving vouchers only slightly increase welfare, while lower housing regulations can decrease the welfare gap by lowering house prices nationwide.2023-06-12T10:32:23+00:00enUnpacking Moving: A Quantitative Spatial Equilibrium Model with Wealth2023-06-12HousingRegional economic developmentsStaff Working Paper 2023-34https://www.bankofcanada.ca/wp-content/uploads/2023/06/swp2023-34.pdfStaff Working Paper 2023-34Elisa GiannoneQi LiNuno PaixaoXinle PangJune 2023GG5G51RR1R12R13R2R3R31R5R52Gazing at r-star: A Hysteresis Perspective
https://www.bankofcanada.ca/2023/01/staff-working-paper-2023-5/
Many explanations for the decline in real interest rates over the last 30 years point to the role that population aging or rising income inequality plays in increasing the long-run aggregate demand for assets. Notwithstanding the importance of such factors, the starting point of this paper is to show that the major change driving household asset demand over this period is instead an increased desire—for a given age and income level—to hold assets.2023-01-12T09:46:25+00:00enGazing at r-star: A Hysteresis Perspective2023-01-12Economic modelsFiscal policyInflation and pricesInflation targetsInterest ratesMonetary policyMonetary policy frameworkStaff Working Paper 2023-5https://www.bankofcanada.ca/wp-content/uploads/2023/01/swp2023-5.pdfGazing at r-star: A Hysteresis PerspectivePaul BeaudryKatya KartashovaCésaire MehJanuary 2023EE2E21E3E31E4E43E5E52E58E6E62GG5G51HH6Windfall Income Shocks with Finite Planning Horizons
https://www.bankofcanada.ca/2022/09/staff-working-paper-2022-40/
How do households respond when they receive unanticipated income, such as an inheritance or government stimulus cheque? This paper studies these windfall income shocks through a model of household behaviour that generates a realistic consumption response for households along the entire distribution of wealth.2022-09-20T08:47:42+00:00enWindfall Income Shocks with Finite Planning Horizons2022-09-20Domestic demand and componentsEconomic modelsFiscal policyStaff Working Paper 2022-40https://www.bankofcanada.ca/wp-content/uploads/2022/09/swp2022-40.pdfWindfall Income Shocks with Finite Planning HorizonsMichael BoutrosSeptember 2022DD9D91EE2E21GG5G51Can the characteristics of new mortgages predict borrowers’ financial stress? Insights from the 2014 oil price decline
https://www.bankofcanada.ca/2021/09/staff-analytical-note-2021-22/
We study the relationship between characteristics of new mortgages and borrowers’ financial stress in Canada’s energy-intensive regions following the 2014 collapse in oil prices. We find that borrowers with limited home equity were more likely to have difficulty repaying debt.2021-09-22T15:00:12+00:00enCan the characteristics of new mortgages predict borrowers’ financial stress? Insights from the 2014 oil price decline2021-09-22ToTEM III: The Bank of Canada’s Main DSGE Model for Projection and Policy Analysis
https://www.bankofcanada.ca/2021/06/technical-report-119/
ToTEM III is the most recent generation of the Bank of Canada’s main dynamic stochastic general equilibrium model for projection and policy analysis. The model helps Bank staff tell clear and coherent stories about the Canadian economy’s current state and future evolution.2021-06-28T08:50:52+00:00enToTEM III: The Bank of Canada’s Main DSGE Model for Projection and Policy Analysis2021-06-28Business fluctuations and cyclesEconomic modelsHousingInterest ratesMonetary policyTechnical Report 2021-119https://www.bankofcanada.ca/wp-content/uploads/2021/06/tr119.pdfTechnical Report 2021-119Paul CorriganHélène DesgagnésJosé DorichVadym LepetyukWataru MiyamotoYang ZhangJune 2021EE1E17E2E20E3E30E4E40E5E50E6E62E65FF4F40F41GG5G51The Heterogeneous Effects of COVID-19 on Canadian Household Consumption, Debt and Savings
https://www.bankofcanada.ca/2020/11/staff-working-paper-2020-51/
The impact of COVID-19 on Canadian households’ debt and unplanned savings varies by household income. Low-income and high-income households accrued unplanned savings, while middle-income households tended to accumulate more debt.2020-11-27T10:28:16+00:00enThe Heterogeneous Effects of COVID-19 on Canadian Household Consumption, Debt and Savings2020-11-27Business fluctuations and cyclesCoronavirus disease (COVID-19)Financial stabilityStaff Working Paper 2020-51https://www.bankofcanada.ca/wp-content/uploads/2020/11/swp2020-51.pdfThe Heterogeneous Effects of COVID-19 on Canadian Household Consumption, Debt and SavingsJames (Jim) C. MacGeeThomas Michael PughKurt SeeNovember 2020EE2E21E24GG5G51