External Academic Consultants

Evren Damar

"My ongoing collaboration with Bank of Canada researchers (and access to TransUnion data via the external academic consultant program) is giving me the opportunity to answer questions I have thought of for some time. I have long been interested in better understanding how household debt evolves (a) over the life-cycle and (b) in periods around financial distress. By focusing on debt portfolios of young vs. older Canadians before and after insolvency filings, I am hoping to make progress on both questions. It is highly likely that severe financial distress, such as an insolvency, disrupts established relationships between households and financial institutions. If such disruptions matter more for the elderly than the young, then one can conclude that while younger households quickly recover from financial distress and rebuild their credit, older households might be stuck in a distressed state for longer. Such a finding would have obvious implications regarding the importance of relationship formation between borrowers and lenders (so called “soft information”). In addition, our detailed analysis of debt portfolios prior to insolvency filings can help shed some light onto the recent phenomenon of higher bankruptcy rates and higher debt burdens among the elderly, both in Canada and the United States."

Sebastien Betermier

"My experience visiting the Bank of Canada has been overwhelmingly positive. The Bank has a large research group that includes experts in all areas of finance and economics. The Bank also provides access to exceptionally unique data and organizes an impressive number of workshops and seminars. It is conveniently located in the downtown of Ottawa, a beautiful city that is rich in activities for families."