This paper documents some stylized facts about the Canadian financial structure. I explore these empirical facts in the context of the Canadian financial legislation. I find that, over the 1990s, Canadian businesses became more heavily dependent on financial markets as their primary source of...

The purpose of this survey is to show how self-enforcing labor contracts can enhance the performance of macroeconomic models. I expose some desirable features of these dynamic contracts regarding the duplication of puzzling macroeconomic facts relative to the dynamics and persistence of...

The author explains how self-enforcing labour contracts can enhance the performance of macroeconomic models. He exposes the benefits of using these dynamic contracts to account for some puzzling macroeconomic facts regarding the dynamics and persistence of employment, consumption and output. In...

The author uses panel data to assess the sensitivity of investment to cash flow in non-financial firms, taking into account the role their financial health plays in investment decisions. Firms are categorized using a method called the Z-score, a contemporaneous indicator of financial stress that...

The author documents some stylized facts about the Canadian financial structure. He explores these empirical facts in the context of Canadian financial legislation and finds that, over the 1990s, Canadian businesses became more heavily dependent on financial markets as their primary source of...

To properly account for the dynamics of key macroeconomic variables, researchers incorporate various internal-propagation mechanisms in their models. In general, these mechanisms implicitly rely on the assumption of a perfect equality between the real wage and the marginal product of labour. The...

In this paper, we aim at forecasting the stochastic volatility of key financial market variables with the Kalman filter using stochastic models developed by Taylor (1986,1994) and Nelson (1990). First, we compare a stochastic volatility model relying on the Kalman filter to the conditional...

In this paper, we propose a new variance reduction technique to speed up the convergence during a Monte-Carlo simulation : Bollinger Bands. Beside being used in technical analysis, we show how Bollinger Bands can filter the extreme variations appearing during a simulation. We apply this...

The components of savings deposits have a very different behavior in Quebec and Ontario. Non-chequable daily savings deposits have grown at a vertiginous rate in Ontario since their introduction. That was not the case in Quebec. Term deposits have always been more popular in Quebec than in...