Government of Canada

About: Government of Canada is a government organization based out in Ottawa, Ontario, Canada. It is known for research contribution in the topics: Monetary policy & Debt. The organization has 796 authors who have published 886 publications receiving 21366 citations. The organization is also known as: federal government of Canada & Her Majesty's Government.

Internally-Corrected Conditional Density Estimation

Abstract: We propose a new kernel estimator of conditional density and derive its asymptotic bias and variance. This new, non-negative estimator, is obtained by 'internalizing' the random denominator of the well known local constant smoother of Rosenblatt (1969). A limited Monte Carlo experiment demonstrates that the new estimator performs well in finite sample simulations in comparison to other kernel smoothers. We also illustrate the applicability of the new estimator using S&P 500 options prices to study implied volatility.

Safe Assets and Financial Fragility: Theory and Evidence

Abstract: How does the access to safe assets affect the fragility and lending behavior of financial intermediaries? We develop a global-game model of investor redemptions from money market funds that hold safe assets and fund risky corporate borrowers. Using the 2013 U.S. debt limit episode and the Federal Reserve's Overnight Reverse Repurchase (ONRRP) facility as our empirical laboratory, we provide evidence consistent with the model's implications. In particular, access to a safe asset---the ONRRP---attenuates investor redemption incentives and allows money market mutual funds to maintain their lending to corporate borrowers. Overall, our results suggest that the public provision of a safe asset reduces intermediary fragility and increases lending to the real economy.

Endogenous Liquidity and Capital Reallocation

Abstract: We study economies where firms acquire capital in primary markets, then, after information on idiosyncratic productivity arrives, retrade it in secondary markets. Our secondary markets incorporate bilateral trade with search, bargaining and liquidity frictions. We distinguish between full or partial sales (one firm gets all or some of the other’s capital). Both exhibit interesting long- and short-run patterns in data that the model can match. Depending on monetary and credit conditions, more partial sales occur when liquidity is tight. Quantitatively, we find significant steady-state and business-cycle implications. We also investigate the impact of search, taxation, and persistence in firm-specific shocks.

Broadband Adoption and Use in Canada and the US: Is the Digital Divide Closing?

Abstract: Despite the pervasiveness of the Internet by 2010, 21% of Canadian households and some 29% of American households did not go online. The digital divide based on location (urban versus rural) persists, although it is narrowing. Although the digital divides based on income, education and age have been narrowing since the last several years, a concern remains as to whether the rates of closure are economically desirable or politically acceptable. Of at least equal concern is the “Adoption Gap,” between those individuals and households to whom Internet access is available, and those who actually choose to adopt and use it.Drawing upon data collected through the Statistics Canada Canadian Internet Use Survey (CIUS) and the U.S. Census Bureau’s Current Population Survey (CPS)-Internet Use Supplement, as well as the Canadian Radio-television and Telecommunication Commission’s (CRTC) annual Communications Monitoring Report, this paper examines the patterns of broadband Internet adoption and use in Canada and the U.S., paying special attention to the characteristics of those Canadians and Americans who did not use the Internet in 2009 and 2010. It further examines the reasons reported for not using the Internet and discusses their implications. The policy response will necessarily differ when attempting to address these differing underlying reasons. For example, the inability to access the Internet based on the unavailability or high cost of broadband requires a different policy response than that required to address the reluctance to use it due to lack of perceived utility, lack of digital skills or fear of technology.

Canada's Exporters and Importers: Concentration, Foreign Ownership, and Productivity

Abstract: Dans cet article,a partir de donnees au niveau des entreprises au Canada portant sur la periode 2002-2007, je montre que le commerce est tres concentre, et qu’il l’est beaucoup plus que l’emploi. Les entreprises qui sonta la fois exportatrices et importatrices sont plus productives que celles qui ne sont qu’exportatrices, et ces dernieres sont plus productives que celles qui ne sont qu’importatrices. Les entreprises sous controle etrangers sont plus importantes, exportent plus par employe et sont plus productives que les entreprises sous controle canadien. L’intensite des chaines de valeur mondiales est pluselevee dans le cas des plus petites entreprises, et ces dernieres exportent un plus grand nombre de produits et dans un plus grand nombre de pays et elles sont sous controleetranger. Par ailleurs, le role que jouent les nouveaux produits et les nouvelles entreprises a diminue en importance pour les exportateurs canadiens. Abstract: Using firm level data in Canada from 2002 to 2007, I show that trade is highly concentrated, much more than employment. Firms that both export and import are more productive than firms that only export, which are more productive than firms that only import. Foreign-controlled firms are larger, export more per employee, and have higher productivity compared to Canadian-controlled counterparts. The intensity of global value chains is higher for firms that are smaller, have higher numbers of export products and export partner countries, and are under foreign control. The role of new products and new firms is falling for Canada’s exporter.