Micro Foundations of Price-Setting Behaviour: Evidence from Canadian Firms

How do firms adjust prices in the marketplace? Do they tend to adjust prices infrequently in response to changes in market conditions? If so, why? These remain key questions in macroeconomics, particularly for central banks that work to keep inflation low and stable. The authors use the Bank of Canada's 2002-03 price-setting survey data to investigate Canadian firms' price-setting behaviour; they also analyze the micro foundations for the firms' pricing behaviour using count data and probit models. The authors find that, all else being equal, firms tend to adjust prices more frequently if they are state-dependent price-setters, operate in the trade sector, or have large variable costs or more direct competitors. There are various sticky-price theories; in the Bank's price-setting survey, the senior management of firms were read a simple statement in non-technical language that paraphrased each sticky-price theory, and were then asked whether the statement applied to their firm. The most frequently recognized sticky-price theories are customer relations, cost-based pricing, and coordination failure. The authors' analysis indicates that if firms recognize coordination failure on price increases, sticky information, menu costs, factor stability, or customer relations as being important, they tend to adjust prices less frequently. The authors also find that the patterns discernible within firms' recognition of stickyprice theories are strongly associated with firms' micro foundations.Inflation and prices; Transmission of monetary policy

Computing the Accuracy of Complex Non-Random Sampling Methods: The Case of the Bank of Canada's Business Outlook Survey

A number of central banks publish their own business conditions survey based on non-random sampling methods. The results of these surveys influence monetary policy decisions and thus affect expectations in financial markets. To date, however, no one has computed the statistical accuracy of these surveys because their respective non-random sampling method renders this assessment non-trivial. This paper describes a methodology for modeling complex non-random sampling behaviour, and computing relevant measures of statistical confidence, based on a given survey's historical sample selection practice. We apply this framework to the Bank of Canada's Business Outlook Survey by describing the sampling method in terms of historical practices and Bayesian probabilities. This allows us to replicate the firm selection process using Monte Carlo simulations on a comprehensive micro-dataset of Canadian firms. We find, under certain assumptions, no evidence that the Bank's firm selection process results in biased estimates and/or wider confidence intervals.Econometric and statistical methods; Central bank research; Regional economic developments

The virtual university

Published ArticleThe article views the concept of a virtual university. Various conceptual definitions are presented to debate the question on what a virtual university is. The author explains the important contribution of technology driven education in the delivering of academic programmes. Throughout the article the advantages of virtual education are highlighted. Some of the advantages include effective transfer of learning to the work place and quick feedback on performance. The article concludes with a future scenario of virtual universities

Multiplayer boycotts in convex games

We extend the notion of boycotts in cooperative games from one-on-one boycotts between single players to boycotts between coalitions. We prove that convex games offer a proper setting for studying the impact of boycotts. Boycotts have a heterogeneous effect. Individual players that are targeted by many-on-one boycotts suffer most, while non-participating players may actually benefit from a boycott

An update - Canadian non-energy exports: Past performance and future prospects

In light of the fact that Canada was continuing to lose market share in the United States, Binette, de Munnik and Gouin-Bonenfant (2014) studied 31 Canadian non-energy export (NEX) categories to assess their individual performance. From this list, about half were expected to lead the recovery in exports. Since that time, NEX growth has picked up: about 80 per cent of the 31 categories have grown in line with, or outperformed, their respective U.S. benchmarks. Furthermore, about half are currently showing upward momentum. Many export categories highly sensitive to the exchange rate have been a key source of strength, as they benefited from the further depreciation of the Canadian dollar. In addition, a more granular analysis finds that export product categories are emerging or re-emerging from low levels. On the downside, however, some categories closely linked to commodity prices have been affected by weak activity and lower prices.Face au recul persistant des parts de marché du Canada aux États-Unis, Binette, de Munnik et Gouin-Bonenfant (2014) ont étudié l’évolution individuelle de 31 catégories de biens non énergétiques canadiens. Près de la moitié des biens examinés étaient appelés à tirer la reprise des exportations. Depuis, les exportations de biens non énergétiques se sont redressées : dans environ 8 cas sur 10, la croissance observée a été soit plus rapide que celle des variables de référence aux États-Unis, soit du même ordre. Par ailleurs, dans près de la moitié des catégories, la croissance est en train de s’accélérer. De nombreuses catégories de biens non énergétiques très sensibles aux mouvements de change sont à la base du regain constaté, car elles bénéficient de la dépréciation du dollar canadien. Une analyse plus fine révèle que des catégories de produits d’exportation commencent à enregistrer un certain élan ou renouent avec le dynamisme après avoir atteint des niveaux bas. À l’opposé, des catégories de produits sensibles à la fluctuation des prix des matières premières ont été pénalisées par la faiblesse de l’activité et des cours

Canadian non-energy exports: Past performance and future prospects

Canada has continued to lose market share in the United States since the Great Recession, beyond what our bilateral competitiveness measures (relative unit labour costs) would suggest. In this context, we have studied 31 non-energy export categories to assess their individual performance against a category-specific foreign activity measure or benchmark, and to identify which export subaggregates will likely be supported by the re cent depreciation of the Canadian dollar. Our main findings are: (i) among the 31 subsectors of non-energy exports, about half (in value terms) have either been performing as expected or outperforming their benchmarks; (ii) the remaining subsectors have lagged their benchmarks, mainly owing to longer-term structural declines; (iii) around half of the subsectors appear to be quite sensitive to persistent movements in the exchange rate; and (iv) about half of the non-energy export subaggregates are anticipated to lead the recovery, including those likely to benefit from robust growth in U.S. construction, U.S. investment in machinery and equipment, and/or the recent depreciation of the Canadian dollar.Depuis la Grande Récession, le Canada continue de perdre des parts de marché aux États-Unis dans des proportions qui dépassent ce que donnent à penser nos mesures de la compétitivité bilatérale (soit les coûts unitaires relatifs de main-d’oeuvre). Dans ce contexte, nous avons examiné 31 catégories de biens et services non énergétiques exportés par le Canada pour évaluer chacune selon une mesure de référence, c’est-à-dire une mesure de l’activité étrangère qui lui est spécifique, et pour repérer les catégories auxquelles devrait profiter la récente dépréciation du dollar canadien. Voici les principaux résultats de notre étude : 1) parmi les 31 sous-secteurs examinés, environ la moitié (en valeur) ont évolué conformément aux attentes ou ont dépassé le rythme de croissance de leurs mesures de référence respectives; 2) les autres sous-secteurs ont affiché une moins bonne tenue, surtout en raison de diminutions structurelles de long terme; 3) à peu près la moitié des sous-secteurs considérés semblent être très sensibles à des variations persistantes du taux de change; 4) approximativement la moitié des sous-agrégats devraient alimenter la reprise des exportations, en l’occurrence les biens et services susceptibles de bénéficier de la croissance robuste de la construction ou des investissements en machines et matériel aux États-Unis, ou encore de la récente dépréciation du dollar canadien

Значение традиционных нравственно-эстетических ценностей в формировании духовного мира ребенка в произведениях Эмиля Амита

Предлагаемый вниманию материал посвящён значению традиционных нравственно-эстетических ценностей в формировании духовного мира подрастающего поколения. Обращение к испокон веков ценимым ценностям под пером автора обретает особое звучание.Пропонований увазі матеріал присвячений проблемі еволюції морального ідеалу в творчості Е.Аміт. Традиційні споконвічні ціності під пером автора набувають особливого звучання.The material which is proposed to you dedicated to a problem of the evolution of the moral ideal in the creation of A Rmit

Деградация человеческого потенциала как фактор латентной составляющей деятельности высшей школы Украины

Рассмотрены проблемы тенизации и коррупционности функционирования украин-ской высшей школы на фоне вектора развития показателей потенциала населения страны.Розглянуті проблеми тінізації і коррупційності функціонування української вищої школи на тлі вектору розвитку показників потенціалу населення країни