Find Bank of Canada research by keyword, author, content type, JEL code, topic or date of publication.
Receive notification by email whenever new research is added to the website.
538
result(s)
Housing demand in Canada: A novel approach to classifying mortgaged homebuyers
Staff Analytical Note 2022-1
Mikael Khan,
Yang Xu
We introduce a novel approach to categorize mortgaged homebuyers into first-time homebuyers, repeat homebuyers and investors. We show how these groups contribute to activity in Canadian housing markets, and we analyze the differences in their demographic and financial characteristics.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Financial stability,
Housing
JEL Code(s):
R,
R2,
R21,
R3,
R31
Firm Inattention and the Efficacy of Monetary Policy: A Text-Based Approach
Staff Working Paper 2022-3
Wenting Song,
Samuel Stern
How much attention do firms pay to macroeconomic news? Through a novel text-based measure, two facts emerge. First, attention is polarized. Most firms either never or always pay attention to economic conditions. Second, it is countercyclical. During recessions, more firms pay attention, and firms pay greater attention to macroeconomic news.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Business fluctuations and cycles,
Inflation and prices,
Monetary policy
JEL Code(s):
D,
D8,
D83,
E,
E4,
E44,
E5,
E52
News-Driven International Credit Cycles
Staff Working Paper 2021-66
Galip Kemal Ozhan
This paper examines the implications of positive news about future asset values that turn out to be incorrect at a later date in an open economy model with banking. The model captures the patterns of bank credit and current account dynamics in Spain between 2000 and 2010. The model finds that the use of unconventional policies leads to a milder bust.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Credit and credit aggregates,
Economic models,
Financial stability,
Recent economic and financial developments,
Sectoral balance sheet
JEL Code(s):
E,
E4,
E44,
F,
F3,
F32,
F4,
F41,
G,
G1,
G15,
G2,
G21
Democratic Political Economy of Financial Regulation
Staff Working Paper 2021-59
Igor Livshits,
Youngmin Park
We offer a theory of how inefficiently lax financial regulation could arise in a democratic society.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial stability,
Financial system regulation and policies,
Housing,
Interest rates
JEL Code(s):
E,
E4,
E43,
E44,
G,
G0,
G01,
G2,
G21,
G28,
P,
P4,
P48
Updated Methodology for Assigning Credit Ratings to Sovereigns
Staff Discussion Paper 2021-16
Karim McDaniels,
Nico Palesch,
Sanjam Suri,
Zacharie Quiviger,
John Walsh
We update the Bank of Canada’s credit rating methodology for sovereigns, including our approach to assessing their fiscal position and monetary policy flexibility. We also explicitly consider climate-related factors.
Content Type(s):
Staff research,
Staff discussion papers
Topic(s):
Credit risk management,
Foreign reserves management
JEL Code(s):
F,
F3,
F31,
G,
G2,
G24,
G28,
G3,
G32
Are Bank Bailouts Welfare Improving?
Staff Working Paper 2021-56
Malik Shukayev,
Alexander Ueberfeldt
Financial sector bailouts, while potentially beneficial during a crisis, might lead to excessive risk taking if anticipated. Taking expectations and aggregate risk implications into account, we show that bailouts can be welfare improving, but only if capital adequacy constraints are sufficiently tight.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability,
Financial system regulation and policies
JEL Code(s):
D,
D6,
D62,
E,
E3,
E32,
E4,
E44,
G,
G0,
G01
A Q-Theory of Banks
Staff Working Paper 2021-44
Juliane Beganau,
Saki Bigio,
Jeremy Majerovitz,
Matías Vieyra
Using stock market data on banks, we show that the book value of loans recognizes losses with a delay. This delayed accounting is important for regulation because the requirements regulators impose are based on book values.
Content Type(s):
Staff research,
Staff working papers
Topic(s):
Financial institutions,
Financial stability,
Financial system regulation and policies
JEL Code(s):
E,
E4,
E44,
G,
G2,
G21,
G3,
G32,
G33
Can the characteristics of new mortgages predict borrowers’ financial stress? Insights from the 2014 oil price decline
Staff Analytical Note 2021-22
Olga Bilyk,
Ken Chow,
Yang Xu
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.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Credit and credit aggregates,
Econometric and statistical methods,
Financial stability,
Housing
JEL Code(s):
C,
C2,
C25,
D,
D1,
D14,
G,
G2,
G21,
G5,
G51,
R,
R2,
R21
Canadian housing supply elasticities
Staff Analytical Note 2021-21
Nuno Paixao
We explain how housing supply elasticities for Canadian cities are estimated. The procedure we use exploits the systematic differences in various cities’ sensitivity to regional house-price cycles.
Content Type(s):
Staff research,
Staff analytical notes
Topic(s):
Housing
JEL Code(s):
R,
R1,
R14,
R3,
R31,
R5,
R52