Working Paper No. 1129

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

Published: June 27, 2016Pages: 45Keywords: Agricultural Trade Liberalization; Export Subsidy; Market Access; SpilloversJEL-codes: F14; O13; Q16; Q17; Q18

The Local Impacts of Agricultural Subsidies: Evidence from the Canadian Prairies Ray Bollman and Shon Ferguson


We estimate the impact of the removal of a railway transportation subsidy on the local economies of Alberta, Saskatchewan and Manitoba, exploiting the large regional variation in these one-time freight rate increases. We find that higher freight rates – and hence lower farm gate prices – resulted in significantly lower farm revenues, farm asset values and farm numbers. Local employment in non-agricultural sectors systematically declined in areas that were hardest hit by the subsidy removal. The results suggest that the subsidy removal had detrimental spillover effects on local non-agricultural economy that are much larger than standard input-output models would predict.

Shon Ferguson

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Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

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