Zhentong Lu - Latest

• Transmission of Cyber Risk Through the Canadian Wholesale Payment System

  Staff Working Paper 2022-23 Anneke Kosse, Zhentong Lu

  This paper studies how the impact of a cyber attack that paralyzes one or multiple banks' ability to send payments would transmit to other banks through the Canadian wholesale payment system. Based on historical payment data, we simulate a wide range of scenarios and evaluate the total payment disruption in the system.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial stability, Payment clearing and settlement systems JEL Code(s): C, C4, C49, E, E4, E42, E47, G, G2, G21

• Quantifying the Economic Benefits of Payments Modernization: the Case of the Large-Value Payment System

  Staff Working Paper 2021-64 Neville Arjani, Fuchun Li, Zhentong Lu

  Canada is undertaking a major initiative to modernize its payments ecosystem. The modernized ecosystem is expected to bring significant benefits to Canadian financial markets and the overall economy. We develop an empirical framework to quantify the economic benefits of modernizing the payment system in Canada.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): C, C3, E, E4, E42, G, G1, G2, G28

• Measuring the Effectiveness of Salespeople: Evidence from a Cold-Drink Market

  Staff Working Paper 2021-40 Haofeng Jin, Zhentong Lu

  Salespeople are widely employed in many industries. We leverage a unique data set on retail sales from a leading Chinese cold-drink manufacturer and information on the firm’s salespeople assignment rule to measure the causal effect of salespeople on product revenue.

  Content Type(s): Staff research, Staff working papers Topic(s): Labour markets, Service sector JEL Code(s): L, L8, L81, M, M3, M5

• 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

• Examining the Impact of Home Purchase Restrictions on China’s Housing Market

  Staff Working Paper 2021-18 Zhentong Lu, Sisi Zhang, Jian Hong

  How do “cooling measures” in the housing market—policies aimed to stabilize prices—affect the market? We use a structural model of housing demand and price competition among developers to evaluate China’s home purchase restriction policies implemented in 2010–11.

  Content Type(s): Staff research, Staff working papers Topic(s): Housing, Market structure and pricing JEL Code(s): O, O1, O18, R, R3, R31, R38

• Predicting Payment Migration in Canada

  Staff Working Paper 2020-37 Anneke Kosse, Zhentong Lu, Gabriel Xerri

  Developments are underway to replace Canada’s two core payment systems with three new systems. We use a discrete choice model to predict migration patterns of end-users and financial institutions for future systems and discuss their policy implications.

  Content Type(s): Staff research, Staff working papers Topic(s): Financial institutions, Financial services, Financial stability, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): C, C3, E, E4, E42, G, G1, G2, G28

• An Economic Perspective on Payments Migration

  Staff Working Paper 2020-24 Anneke Kosse, Zhentong Lu, Gabriel Xerri

  Consumers, businesses and banks make millions of payments each day using a variety of instruments, such as debit cards, cheques and wires. Canada is currently developing three new systems to process these transactions: Lynx, Settlement Optimization Engine (SOE) and Real-Time Rail (RTR).

  Content Type(s): Staff research, Staff working papers Topic(s): Financial services, Financial system regulation and policies, Payment clearing and settlement systems JEL Code(s): E, E4, E42, G, G2, G21