The Local Impacts of Agricultural Subsidies: Evidence from the Canadian Prairies

Reprint No. 2019:20

Author(s): Ray D. Bollman and Shon FergusonYear: 2019 Title: Journal of Agricultural Economics Volume (No.): 70 (2) Pages: 507–528
Online article (restrictions may apply)
Preliminary version

We estimate the impact of removing an export subsidy on the local economies of Alberta, Saskatchewan and Manitoba, exploiting the large regional variation of a 1995 reform. We find that the loss of the subsidy resulted in significantly lower farm value‐added, farm asset values and local non‐farm employment. The results suggest that the subsidy removal had detrimental spillover effects on the local non‐agricultural economy that varied spatially across the Prairies. The point estimates suggest that the marginal effect of the subsidy loss on non‐agricultural employment was five times as large as those obtained from traditional estimates of the multiplier effect.

Bollman, Ray D. and Shon Ferguson (2019), "The Local Impacts of Agricultural Subsidies: Evidence from the Canadian Prairies". Journal of Agricultural Economics 70(2), 507–528.

Shon Ferguson


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Denmark, Finland, Norway and Sweden face similar problems of integrating large groups of immigrants, especially low-educated ones from outside the EU, into their labour markets. In this volume, edited by Lars Calmfors, IFN, and Nora Sánchez Gassen in cooperation with researchers from across the Nordic Region analyse how labour market integration of immigrants can be promoted. 

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