Working Paper No. 966

Competitive Pressure and Technology Adoption: Evidence from a Policy Reform in Western Canada

Published: May 31, 2013Pages: 28Keywords: Agricultural Trade Liberalization; Export Subsidy; Technical ChangeJEL-codes: F14; O13; Q16; Q17; Q18
Published version

Competitive Pressure and Technology Adoption: Evidence from a Policy Reform in Western Canada Shon Ferguson and Rose Olfert

We measure the impact of the removal of a railway transportation subsidy on the adoption of technology for Western Canadian farms, using a unique combination of Census and freight rate data. We exploit the large regional variation in these one-time freight rate increases in order to identify causal effects of increased competitive pressure.

Using a difference-in-differences methodology we find that higher freights rates – and hence lower farm gate prices – induced farmers to adopt new, more efficient production technology. We also find that farmers experiencing the greatest transportation cost increases also increased fertilizer usage and made significant land use changes.

Shon Ferguson


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Sick of Inequality?

An Introduction to the Relationship between Inequality and Health

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In this book Andreas Bergh, Therese Nilsson, IFN and Lund University, and Daniel Waldenström, IFN and Paris School of Economics, France, review the latest research on the relationship between inequality and health. What does inequality mean for our health? Does increasing income inequality affect outcomes such as obesity, life expectancy and subjective well-being?


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