State trading deregulation and prairie durum wheat production

Carter, Colin A.; Ferguson, Shon

doi:10.1111/cjag.12207

Cited by 4 publications

(4 citation statements)

References 28 publications

(42 reference statements)

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“…It is well understood that there are a variety of other sources potentially giving rise to misallocation, including (and by no means limited to) geopolitics, within-country corruption, taxation, and an oft-expressed desire for self-sufficiency on the part of many sovereign states. 10 The decomposition of the full extent of misallocation into that attributable to OPEC-related market power, and that attributable to other channels, raises conceptual issues closely related to the issues raised in Lipsey and Lancaster's (1956) articulation of the theory of the second-best.…”

Section: B Application To Global Oil Extractionmentioning

confidence: 99%

(Mis)Allocation, Market Power, and Global Oil Extraction

Asker

Collard-Wexler

Loecker

2019

American Economic Review

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We propose an approach to measuring the misallocation of production in a market that compares actual industry cost curves to undistorted (counterfactual ) supply curves. As compared to traditional, TFPR-based, misallocation measures, this approach leverages cost data, such that results are readily mapped to welfare metrics. As an application, we analyze global crude oil extraction and quantify the extent of misallocation therein, together with the proportion attributable to market power. From 1970 to 2014, we find substantial misallocation, in the order of US$744 billion, 14.1 percent to 21.9 percent of which is attributable to market power. (JEL D24, F23, L13, L71, Q35)

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Section: B Application To Global Oil Extractionmentioning

confidence: 99%

(Mis)Allocation, Market Power, and Global Oil Extraction

Asker

Collard-Wexler

Loecker

2019

American Economic Review

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“…Finally, our work contributes to previous literature studying the impact of policy distortions on agricultural specialization and production incentives (Peterson and Valluru , Anderson et al. , Carter and Ferguson ).…”

Section: Introductionmentioning

confidence: 60%

“…Khandelwal et al (2013) find, for example, that the reallocation of resources due to a Chinese institutional reform amplified the benefits to China associated with removing quotas on textiles under the Multifiber Arrangement. Finally, our work contributes to previous literature studying the impact of policy distortions on agricultural specialization and production incentives (Peterson and Valluru 2000, Anderson et al 2008, Carter and Ferguson 2019.…”

Section: Introductionmentioning

confidence: 75%

Deregulation and regional specialization: Evidence from Canadian agriculture

Carter

Ferguson

2019

Canadian J of Economics

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For about 70 years, the Canadian Wheat Board (CWB) was one of the world's largest export "single desk" state traders in agriculture, until it was deregulated in 2012 and stripped of its marketing powers. One of the main crops controlled by the CWB was barley. We estimate the impact of the removal of the CWB's single desk on the spatial pattern of malting barley production in Western Canada. We find that deregulation encouraged growers located closer to malt barley processing plants to increase production relative to growers located further from the plants. This change in cropping patterns after deregulation can be explained by efficiency gains, combined with transportation and handling cost savings.Résumé. Dérégulation et spécialisation régionale : l'exemple de l'agriculture canadienne. Pendant près de soixante-dix ans, la Commission canadienne du blé (CCB) représenta l'un des plus grands guichets uniques monopolistiques de négoce agricole dans le monde jusqu'à sa déréglementation en 2012, date à laquelle elle perdit toutes ses prérogatives commerciales. L'une des principales cultures contrôlées par la CCB était l'orge. Nous avons évalué l'impact de la suppression du guichet unique de la CCB sur la distribution géographique de la production d'orge de brasserie dans l'Ouest canadien. Consécutivement à la déréglementation, nous avons remarqué que plus les producteurs étaient situés à proximité des usines de transformation d'orge brassicole, plus ils augmentaient leur production. Ce changement dans le système de culture, postérieur à la déréglementation, peut s'expliquer par des gains en efficacité ainsi que des économies en matière de coûts de transport et de manutention.

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“…The most important of these shocks is the global increase in grain prices in 2007-2008(Headey and Fan 2008. Other shocks include the BSE outbreak in beef sector in 2003 (Rude et al 2007), the imposition of countryof-origin labelling laws for beef and pork by the United States (Rude et al 2006), a grain transport crisis in 2013-2014 (Slade and Gray 2019), and the removal of the Canadian Wheat Board as the single seller of Western Canadian wheat in 2012 (Carter and Ferguson 2019).…”

Section: Parallel Trends Assumptionmentioning

confidence: 99%

The Effect of Carbon Tax on Farm Income: Comment

Slade

Lloyd‐Smith

Skolrud

2020

Environ Resource Econ

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Olale et al. (Environ Resour Econ 605-623, 2019) argue that the introduction of a carbon tax substantially reduced farm income in the Canadian province of British Columbia. In this comment, we raise serious concerns with their data, empirical methods, and theory. Most importantly, Olale et al. (2019) assume that the difference in farm income between British Columbia and the rest of Canada would have remained constant over time without the introduction of the carbon tax. We provide evidence that this is unlikely to be true and show that their results disappear when we account for differential trends. We conclude that the estimates in Olale et al. (2019) do not represent the effect of a carbon tax on farm income.

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State trading deregulation and prairie durum wheat production

Cited by 4 publications

References 28 publications

(Mis)Allocation, Market Power, and Global Oil Extraction

(Mis)Allocation, Market Power, and Global Oil Extraction

Deregulation and regional specialization: Evidence from Canadian agriculture

The Effect of Carbon Tax on Farm Income: Comment

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