{"title":"Production networks and the macroeconomic impacts of commodity price shocks","authors":"Shutao Cao, Wei Dong","doi":"10.1111/caje.70007","DOIUrl":"https://doi.org/10.1111/caje.70007","url":null,"abstract":"<p>We examine the macro implications of commodity price shocks in a small open economy model with input–output linkages for a commodity-exporting small open economy. In the model, fluctuations in commodity prices have impacts on aggregate output not only through resource reallocation, currency value changes and monetary policy reaction but also through upstream and downstream input–output linkages (both domestically and with the rest of the world). We show the importance of input–output linkages as a shock transmission mechanism. We find that production linkages with the rest of the world play a significant role in amplifying the shock's aggregate impact.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 2","pages":"690-715"},"PeriodicalIF":1.3,"publicationDate":"2025-05-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144091375","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"A welfare analysis of genetic testing in health insurance markets with adverse selection and prevention","authors":"David Bardey, Philippe De Donder","doi":"10.1111/caje.70010","DOIUrl":"https://doi.org/10.1111/caje.70010","url":null,"abstract":"<p>Personalized medicine remains in its early stages, with expensive genetic tests offering limited actionable insights for prevention. As a result, few individuals undergo testing, and health insurance contracts pool all agents regardless of genetic background. However, as tests become cheaper and more informative, more people may choose to get tested, influencing both insurance pricing and contract types. We examine how the proportion of individuals taking genetic tests and the informativeness of these tests affect whether equilibrium contracts remain pooling or become separating. We find that increasing test uptake can reduce welfare, particularly when it leads to a shift from pooling to separating contracts. Similarly, lower prevention effort costs, reflecting more informative tests, can harm welfare if they induce separation. These findings suggest that policies promoting genetic testing or reducing prevention costs may not always be beneficial, especially when the market equilibrium remains in a pooling state.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 2","pages":"443-483"},"PeriodicalIF":1.3,"publicationDate":"2025-05-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144091295","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Privacy concerns in insurance markets: Implications for market equilibria and customer utility","authors":"Irina Gemmo, Mark J. Browne, Helmut Gründl","doi":"10.1111/caje.70004","DOIUrl":"https://doi.org/10.1111/caje.70004","url":null,"abstract":"<p>We analyze insurance market outcomes and customer utility under asymmetric information when customers have heterogeneous privacy concerns and access to a screening technology that permits their private information to be revealed. If the market outcome without the technology is of the Rothschild–Stiglitz type, so too is the market outcome with the technology for those who do not submit to the screening technology and thus retain their private information. Low-risk customers who reveal their private information are better off and those who do not reveal their risk type are no worse off, resulting in a Pareto improvement. If, however, the market outcome without the technology is of the Wilson–Miyazaki–Spence type, the market may no longer exhibit cross-subsidies after the screening technology is introduced. In this case, low-risk customers who reveal their risk type are better off, but this is at the expense of those who do not reveal their risk type, who are worse off due to intensified adverse selection. The negative externality on those who do not reveal their risk type can outweigh the utility gains of those low-risk customers who do reveal their risk type, resulting in lower expected welfare. In this case, a privacy law would improve expected welfare.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 2","pages":"484-514"},"PeriodicalIF":1.3,"publicationDate":"2025-05-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144091387","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"“The risks cannot be compensated”: The willingness to donate DNA for science and its relationship with economic preferences","authors":"Richard Karlsson Linnér, Manisha Jain","doi":"10.1111/caje.70008","DOIUrl":"https://doi.org/10.1111/caje.70008","url":null,"abstract":"<p>The accumulation of large genetic data is crucial for the scientific advancement of genetic research and precision medicine, but various participation biases threaten the validity of genetic research data sets. To better understand the decision to participate and its relationship with economic incentives and preferences, we studied the stated willingness to donate DNA for science by saliva sample in a representative panel of Dutch households. There were two randomized treatments, varying (i) the information material on benefits and risks and (ii) the intended financial incentive. The first treatment had no detectable effect, suggesting insensitivity to the information material. The higher incentive conditions had modest and diminishing effects, suggesting that offering higher incentives is not cost-effective. Stated reasons not to donate DNA concentrated on personal risks, e.g., privacy violations and data exploitation. Accordingly, stated risk willingness was found strongly associated, followed by trust and positive reciprocity. Revealed economic preferences were not associated. The results support previous findings for self-rated health, interpersonal trust and confidence in science or societal institutions but not for certain demographic variables (e.g., age, education and religiosity). We conclude by proposing strategies to encourage participation, e.g., to reallocate resources to risk-minimizing or compensatory measures.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 2","pages":"515-547"},"PeriodicalIF":1.3,"publicationDate":"2025-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70008","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144091474","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"What explains public support for Canada's supply management regime?","authors":"Ryan Cardwell, Chad Lawley","doi":"10.1111/caje.70009","DOIUrl":"https://doi.org/10.1111/caje.70009","url":null,"abstract":"<p>We investigate elasticity of policy preferences to information about the economic effects of policy tools. We survey approximately 5,000 people and ask a referendum question about liberalizing supply management in Canada. Supply management regulates production and marketing of dairy and poultry products in Canada through production restrictions, regulated pricing, and import barriers. Support varies widely across political-party affiliation, and across individuals with different views on redistributive fiscal policies, international trade liberalization, and perceptions of how supply management affects food prices. We estimate causal effects of information about personal costs and distributional effects of supply management on support for the policy in a randomized experiment. Treated participants receive personalized information about how supply management affects household grocery costs, and information about the policy's distributional effects. Policy support is responsive to information treatments, but these effects are small relative to differences in support across individuals' views on economic issues such as international trade and fiscal redistribution policies. We find little evidence of heterogenous treatment effects across respondent characteristics, suggesting the effects of our information treatments are not tied to views about political and economic issues.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 2","pages":"580-608"},"PeriodicalIF":1.3,"publicationDate":"2025-05-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70009","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144091473","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Global emissions, regulatory competition and excess entry","authors":"Hikaru Ogawa, Wenming Wang","doi":"10.1111/caje.70006","DOIUrl":"https://doi.org/10.1111/caje.70006","url":null,"abstract":"<p>This study presents a model that relates the efficiency of environmental regulatory competition to excess entry by firms. The two key results are as follows. First, when emissions remain localized, stringent environmental regulation leads to insufficient firm entry owing to negative external effects on the damage caused by emissions in other countries. Second, if emissions spill over globally, akin to CO<span></span><math>\u0000 <mrow>\u0000 <msub>\u0000 <mrow>\u0000 <mo> </mo>\u0000 </mrow>\u0000 <mrow>\u0000 <mn>2</mn>\u0000 </mrow>\u0000 </msub>\u0000 </mrow></math> causing global warming, the impact of emissions on welfare will be uniform across countries. In this case, the positive and negative external effects of tightening regulation cancel each other out, yielding the second-best levels of regulation and firm entry.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 2","pages":"771-802"},"PeriodicalIF":1.3,"publicationDate":"2025-05-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144091334","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Import competition and firm-level CO\u0000 \u0000 \u0000 \u0000 \u0000 \u0000 \u0000 2\u0000 \u0000 \u0000 emissions: Evidence from the German manufacturing industry","authors":"Jakob Lehr","doi":"10.1111/caje.70003","DOIUrl":"https://doi.org/10.1111/caje.70003","url":null,"abstract":"<p>Using the German census of the manufacturing industry, I analyze the impact of import competition on carbon emissions per unit of deflated sales (emission intensity). I combine precise information on firm-level CO<span></span><math>\u0000 <mrow>\u0000 <msub>\u0000 <mrow>\u0000 <mo> </mo>\u0000 </mrow>\u0000 <mrow>\u0000 <mn>2</mn>\u0000 </mrow>\u0000 </msub>\u0000 </mrow></math> emissions with sector-level trade flows. Looking at the period 1995 until 2017, I focus on the impact of the rise of Eastern Europe and China while addressing the endogeneity of trade flows with an instrumental variable approach. The baseline results suggest that a 1 pp increase in the import penetration ratio caused a reduction of the average firm's emission intensity by approximately 0.3%. This result implies that the rise of the joint East between 1995 and 2017 kept the average firm's emission intensity 6% below the level it would have had in the absence of the East's rise. I do not find strong indication for reallocation of production towards more efficient firms. Finally, I supplement the analysis by examining the effect of export opportunities due to the East's rise. The results indicate that exporting to the East increased sales and emissions, with a small, if any, negative effect on emission intensities.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 2","pages":"747-770"},"PeriodicalIF":1.3,"publicationDate":"2025-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70003","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144091325","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}