C - Mathematical and Quantitative Methods

• Technology Adoption in Input-Output Networks

  Staff Working Paper 2019-51 Xintong Han, Lei Xu

  We study how input-output networks affect the speed of technology adoption. In particular, we model the decision to adopt the programming language Python 3 by software packages. Python 3 provides advanced features but is not backward compatible with Python 2, which implies it comes with adoption costs.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models, Firm dynamics, Productivity JEL Code(s): C, C6, C61, L, L2, L23, L8, L86, O, O1, O14, O3, O33

• Monetary Payoff and Utility Function in Adaptive Learning Models

  Staff Working Paper 2019-50 Erhao Xie

  When players repeatedly face an identical or similar game (e.g., coordination game, technology adoption game, or product choice game), they may learn through experience to perform better in the future. This learning behaviour has important economic implications.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Econometric and statistical methods, Economic models JEL Code(s): C, C5, C57, C7, C72, C9, C92

• 2018 Merchant Acceptance Survey

  Staff Analytical Note 2019-31 Kim Huynh, Gradon Nicholls, Mitchell Nicholson

  In 2015, the Bank of Canada surveyed merchants and found that cash was nearly universally accepted (Fung, Huynh and Kosse 2017). Since 2015, retail payments in Canada have become increasingly digitalized, as many Canadians have adopted digital payment innovations like contactless cards and Interac e-Transfer.

  Content Type(s): Staff Research, Staff Analytical Notes Topic(s): Bank notes, Digital Currencies and Fintech, Econometric and statistical methods JEL Code(s): C, C8, D, D2, D22, E, E4, L, L2

• Extreme Downside Risk in Asset Returns

  Staff Working Paper 2019-46 Lerby Ergun

  Financial markets can experience sudden and extreme downward movements. Investors are highly concerned about the performance of their assets in such scenarios. Some assets perform badly in a downturn in the market; others have milder reactions.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Asset Pricing, Econometric and statistical methods JEL Code(s): C, C1, C14, G, G1, G11, G12

• What Do Survey Data Tell Us About US Businesses?

  Staff Working Paper 2019-45 Anmol Bhandari, Serdar Birinci, Ellen McGrattan, Kurt See

  This paper examines the reliability of survey data on business incomes, valuations, and rates of return, which are key inputs for studies of wealth inequality and entrepreneurial choice.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Business fluctuations and cycles, Firm dynamics JEL Code(s): C, C8, C83, E, E2, E22, H, H2, H25

• Interconnected Banks and Systemically Important Exposures

  Staff Working Paper 2019-44 Alan Roncoroni, Stefano Battiston, Marco D’Errico, Grzegorz Halaj, Christoffer Kok

  How do banks' interconnections in the euro area contribute to the vulnerability of the banking system? We study both the direct interconnections (banks lend to each other) and the indirect interconnections (banks are exposed to similar sectors of the economy). These complex linkages make the banking system more vulnerable to contagion risks.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Financial stability JEL Code(s): C, C6, C63, G, G1, G15, G2, G21

• Technological Progress and Monetary Policy: Managing the Fourth Industrial Revolution

  Staff Discussion Paper 2019-11 Stephen S. Poloz

  This paper looks at the implications for monetary policy of the widespread adoption of artificial intelligence and machine learning, which is sometimes called the “fourth industrial revolution.”

  Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Economic models, Financial stability, Monetary policy framework, Uncertainty and monetary policy JEL Code(s): C, C5, E, E3, O, O1, O11, O3, O33

• 2018 Bitcoin Omnibus Survey: Awareness and Usage

  Staff Discussion Paper 2019-10 Christopher Henry, Kim Huynh, Gradon Nicholls, Mitchell Nicholson

  The Bank of Canada continues to use the Bitcoin Omnibus Survey (BTCOS) to monitor trends in Canadians’ awareness, ownership and use of Bitcoin. The most recent iteration was conducted in late 2018, following an 85 percent decline in the price of Bitcoin throughout the year.

  Content Type(s): Staff Research, Staff Discussion Papers Topic(s): Bank notes, Digital Currencies and Fintech, Econometric and statistical methods JEL Code(s): C, C1, C12, E, E4, O, O5, O51

• The Simple Economics of Global Fuel Consumption

  Staff Working Paper 2019-35 Doga Bilgin, Reinhard Ellwanger

  This paper presents a structural framework of the global oil market that relies on information on global fuel consumption to identify flow demand for oil. We show that under mild identifying assumptions, data on global fuel consumption help to provide comparatively sharp insights on elasticities and other key structural parameters of the global oil market.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Economic models JEL Code(s): C, C5, C51, L, L7, L71, Q, Q4, Q41, Q43

• Explaining the Interplay Between Merchant Acceptance and Consumer Adoption in Two-Sided Markets for Payment Methods

  Staff Working Paper 2019-32 Kim Huynh, Gradon Nicholls, Oleksandr Shcherbakov

  Recent 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.

  Content Type(s): Staff Research, Staff Working Papers Topic(s): Bank notes, Digital Currencies and Fintech, Econometric and statistical methods, Financial services JEL Code(s): C, C5, C51, L, L1, L13, L15, L8, L81, L9, L96