Kim is a Senior Research Advisor. His research interests include industrial economics and applied econometrics.
Staff analytical notes
Staff discussion papers
Staff working papers
Equilibrium in Two-Sided Markets for Payments: Consumer Awareness and the Welfare Cost of the Interchange FeeWe construct and estimate a structural two-stage model of equilibrium in a market for payments in order to quantify the network externalities and identify the main determinants of consumer and merchant decisions.
Demand for Payment Services and Consumer Welfare: The Introduction of a Central Bank Digital CurrencyUsing a two-stage model, we study the determinants of Canadian consumers’ choices of payment method at the point of sale. We estimate consumer preferences and adoption costs for various combinations of payment methods. We analyze how introducing a central bank digital currency would affect the market equilibrium.
Explaining the Interplay Between Merchant Acceptance and Consumer Adoption in Two-Sided Markets for Payment MethodsRecent consumer and merchant surveys show a decrease in the use of cash at the point of sale. Increasingly, consumers and merchants have access to a growing array of payment innovations as substitutes for cash.
Bank of Canada Review articles
Over the past 20 years, there has been a major shift away from the use of paper-based retail payment instruments, such as cash and cheques, toward electronic means of payment, such as debit cards and credit cards. Recent Bank of Canada research on consumers’ choice of payment instruments indicates that cash is frequently used for transactions with low values because of its speed, ease of use and wide acceptance, while debit and credit cards are more commonly used for transactions with higher values because of perceived attributes such as safety and record keeping. While innovations in retail payments currently being introduced into the Canadian marketplace could lead to a further reduction in the use of cash over the longer term, the implications for the use of cash of some of the structural and regulatory developments under way are less clear.
The Economy, Plain and Simple
Financial System Hub articles
- “On the Evolution of UK Price Distributions”
(with Ba M. Chu, David T. Jacho-Chavez, and Oleksiy Kryvtsov), Annals of Applied Statistics, forthcoming.
- “Flexible Estimation of Demand Systems: A Copula Approach”
(with Gustavo Canavire-Bacarreza, David Jacho-Chavez, and Mateo Velasquez-Giraldo), Journal of Applied Econometrics, forthcoming.
- “Using Nonparametric Copulas to Measure Crude Oil Price Co-movements”
(with Anson Ho and David Jacho-Chavez), Energy Economics, forthcoming.
- “Debt Financing in Private and Public Firms”
(with Teodora Paligorova and Robert Petrunia), Annals of Finance, forthcoming.
- “Merchant Acceptance of Cash and Credit Cards at the Point of Sale”
(with Ben Fung, Kerry Nield, and Angelika Welte), Journal of Payment Systems and Strategy, vol. 12(2), pages 150-165.
- “Bitcoin Awareness and Usage in Canada”
(with Christopher S. Henry and Gradon Nicholls), Journal of Digital Banking, vol. 2(4), Spring 2018, pages 311-337.
- “Industry Shutdown Rates and Permanent Layoffs: Evidence from Firm-Worker Matched Data”
(with Yuri Ostrovsky, Robert Petrunia and Marcel Voia), IZA Journal of Labour Economics, vol. 6(1), Pages 1--31, December 2017.
- “Income and Democracy: A Smooth Varying Coefficient Redux“,
(with Alex Lundberg and David Jacho-Chavez), Journal of Applied Econometrics, vol. 32(3), Pages 719--724, April/May 2017.
- "Mixed Proportional Hazard Models with Continuous Finite Mixture Unobserved Heterogeneity",
(with Marcel Voia), Applied Stochastic Models in Business and Industry, Volume 33(1), Pages 81--94, January/February 2017.
- "Retail Payment Innovations and Cash Usage: Accounting for Attrition Using Refreshment Samples",
(with Heng Chen and Marie-Helene Felt) Journal of Royal Statistical Society Series A, vol. 180(2), Pages 503-530, February.
- "Consumer Cash Usage: A Cross-Country Comparison with Payment Diary Survey Data,"
(with John Bagnall, David Bounie, Anneke Kosse, Tobias Schmidt, Scott Schuh and Helmut Stix). International Journal of Central Banking, vol. 12(4), pages 1-61, December 2016.
- "Measuring Consumer Cash Holdings: Lessons from the 2013 Bank of Canada Methods-of-Payment Survey,"
(with Heng Chen, Christopher S. Henry, Rallye Shen and Kyle Vincent), Survey Practice, Volume 9 (3), 2016.
- "Flexible Estimation of Copulas: An Application to the US Housing Crisis,"
(with Anson Ho and David Jacho-Chavez), Journal of Applied Econometrics, Volume 31(1), April/May 2016, pages 603-610.
- "The Evolution of Firm-Level Distributions for Ukrainian Manufacturing Firms,"
(with David Jacho-Chavez, Oleksiy Kryvtsov, Oleksandr Shepotylo, and Volodymyr Vakhitov), Journal of Comparative Economics, Volume 44(1), pages 148-162, 2016.
- "Post-Entry Struggle for Life and Pre-Exit Shadow of Death from a Financial Perspective,"
(with Robert Petrunia), International Journal of the Economics of Business, Volume 23(1), February 2016, pages 1-18.
- "The Distributional Efficacy of Collaborative Learning on Student Outcomes,"
(with David Jacho-Chavez and James K. Self), The American Economist, Volume 60(2), September 2016, pages 98-119.
- "Subjective Health Expectations,"
(with Juergun Jung), Journal of Policy Modeling, Volume 37, Issue 4, July–August 2015, Pages 693-–711.
- "Consumer Payment Choice: Merchant Card Acceptance versus Pricing Incentives,"
(with Carlos Arango and Leonard Sabetti), Journal of Banking and Finance, Volume 55, June 2015, Pages 130-141.
- "A Nonparametric Analysis of Firm Size, Leverage and Labour Productivity Distribution Dynamics,"
(with David Jacho-Chavez, Robert Petrunia and Marcel Voia), Empirical Economics, Volume 48, Issue 1, pages 337-360. February 2015.
- "Retail Payments Innovation and the Demand for Cash in Canada,"
(with Ben S.C. Fung and Leonard Sabetti), Journal of Financial Market Infrastructures, Volume 3, Issue 1, pages 1-29, September 2014.
- "crs: A Package For Nonparametric Spline Estimation in R,"
(with Anson T.Y. Ho and David T. Jacho-Chavez) Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 29(2), pages 348-352, 2014.
- "Adaptive permutation tests for serial independence,"
(with Ba Chu, Chunfeng Huang, and Lanh Tran), Statistica Neerlandica, Vol. 68(3), pages 183-208, 08, 2014.
- “Fitness versus Fatness: Productivity, Financial Conditions, and the Survival of New Canadian Manufacturing Firms,”
(with Robert Petrunia and Marcel Voia). Structural Change and Economic Dynamics, 2012 vol. 23(4), pages 354-362.
- “Initial Financial Conditions, Unobserved Heterogeneity, and the Duration of New Firms,”
(with Robert Petrunia and Marcel Voia), Managerial Decision Economics, Volume 33 (2), pages 109–25, March 2012.
- “Functional Principal Component Analysis of Density Families with Categorical and Continuous Data on Canadian Entrant Manufacturing Firms,”
(with David T. Jacho-Chavez, Robert Petrunia and Marcel Voia) in Journal of the American Statistical Association, Volume 106 (495), pages 858–878, September 2011.
- “npRmpi: A package for Parallel Distributed Kernel Estimation in R,”
(with Ho, Anson and David T. Jacho-Chavez) in Journal of Applied Econometrics, Volume 26 (2), pages 344-349, March 2011.
- “Firm Size Distributions Through the Lens of Functional Principal Components Analysis,”
(with David T. Jacho-Chavez) in Journal of Applied Econometrics, Volume 25 (7), pages 1211-1214, November/December 2010.
- “The Impact of Initial Financial State on Firm Duration Across Entry Cohorts,”
(with Robert Petrunia and Marcel Voia) in Journal of Industrial Economics, Volume 58 (3), pages 661-689, September 2010.
- “The Efficacy of Collaborative Learning Recitation Sessions on Student Outcomes,”
(with David T. Jacho-Chavez and James K. Self) in American Economic Review Papers & Proceedings, vol. 100(2), pages 287-291, May 2010.
- “Age Effects, Financial Frictions and Firm Growth,”
(with Robert Petrunia) in Journal of Economic Dynamics and Control, Vol. 34 (5) pp. 1003-1013. May 2010.
- “Internally-Corrected Conditional Density Estimation: With An Application to Implied-Volatility,”
(with David T. Jacho–Chavez) in Journal of Quantitative Economics, Vol. 7, no. 2, pp. 20-40. 2009.
- “Growth and Governance: A Nonparametric Approach,”
(with David T. Jacho–Chavez) in Journal of Comparative Economics, Vol. 37 (1), p. 121–143, March 2009.
- “Entry penetration in Canadian Manufacturing,”
(with Robert Petrunia) in Economics Letters, Vol. 100 (1), Pages 87-90, July 2008.
- “Conditional density estimation: an application to the Ecuadorian manufacturing sector,”
(with David T. Jacho–Chavez) in Economics Bulletin Vol. 3 (62), pp. 1-6, 2007.
Chapters in books
- “Average derivative estimation with missing responses,”
(with Bravo, Francesco and David T. Jacho- Chavez) in Chapter 5, p. 131–156 of Advances in Econometrics: Missing Data, Volume 27A, 2011, edited by David Drukker. Emerald Group Publishing.
- “Nonlinear Difference-in-Difference Treatment Effect Estimation: A Distributional Analysis,”
(with David T. Jacho- Chavez and Marcel Voia) in Chapter 9, p. 251–272 of Advances in Econometrics: Missing Data Volume 27A, 2011, edited by David Drukker. Emerald Group Publishing.
- “A Nonparametric Quantile Analysis of Growth and Governance,”
(David T. Jacho- Chavez) in Chapter 6, p. 193–221 of Advances in Econometrics: Nonparametric Econometric Methods, Volume 25, 2009, edited by Jeffrey S. Racine and Qi Li. Emerald Group Publishing.
- "Estimating State-Price Densities with Nonparametric Regression"
(with Pierre Kervella and Jun Zheng) in Chapter 8, pages of Applied Quantitative Finance, 2002, edited by Wolfgang Haerdle, Torsten Kleinow, and Gerhard Stahl, Springer-Verlag.