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Financial shocks and the output growth distribution / François-Michel Boire, Thibaut Duprey, Alexander Ueberfeldt.FB3-5/2025-25E-PDF

"This paper studies how financial shocks shape the distribution of output growth by introducing a quantile-augmented vector autoregression (QAVAR), which integrates quantile regressions into a structural VAR framework. The QAVAR preserves standard shock identification while delivering flexible, nonparametric forecasts of conditional moments and tail risk measures for gross domestic product (GDP). Applying the model to financial conditions and credit spread shocks, we find that adverse financial shocks worsen the downside risk to GDP growth significantly, while the median and upper percentiles respond more moderately. This underscores the importance of nonlinearities and heterogeneous tail dynamics in assessing macro-financial risks"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.956727&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleFinancial shocks and the output growth distribution / François-Michel Boire, Thibaut Duprey, Alexander Ueberfeldt.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2025-25
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "Last updated: September 19, 2025."
  • Includes bibliographical references (pages 21-23).
  • Includes abstracts in English and French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, 2025.
  • ©2025
Author / Contributor
  • Boire, François-Michel, author.
Description1 online resource (ii, 31 pages) : charts.
Catalogue number
  • FB3-5/2025-25E-PDF
Subject terms
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