{"title":"Railroads, land cessions and Indigenous nations: Evidence from Canada","authors":"Jeff Chan, Azim Essaji, Rob Gillezeau","doi":"10.1111/caje.70020","DOIUrl":"https://doi.org/10.1111/caje.70020","url":null,"abstract":"<p>We examine the role that the railroad played in the dispossession and cession of Indigenous lands within the borders of present-day Canada. Using georeferenced data on the construction of the railroad network and on the timing, content and extent of treaties signed between the Crown and Indigenous nations, we find that the expansion of the railway network does not appear to hasten the signing of treaties or increase the area ceded. However, we find evidence consistent with the Crown engaging in treaty-signing well in advance of railroad construction to secure the path for the transcontinental railway. We find some weak evidence that US westward expansion, as measured by nearby US population, partly explains the cession of Indigenous lands in what is now Canada. Taken together, our results indicate that the relationship between the railroad and Indigenous land dispossession looked very different in Canada from the United States. In the latter, the process was concurrent; in Canada, land cession occurred well in advance of railway construction. This forward-looking approach accords with a historical narrative that centres the role of the railway in bringing British Columbia into Confederation and in securing the Prairies from US territorial ambitions.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 3","pages":"860-891"},"PeriodicalIF":1.1,"publicationDate":"2025-10-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659582","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":"Physical restructuring and merger outcomes in Ontario hospitals","authors":"Eliane H. Barker, Jenny Watt","doi":"10.1111/caje.70016","DOIUrl":"https://doi.org/10.1111/caje.70016","url":null,"abstract":"<p>Hospitals in public and private healthcare systems frequently undergo mergers despite mixed evidence on their effects on quality and cost. We use confidential health data from Ontario to evaluate the effect of hospital mergers on measures of hospital quality, capacity and financial status. In particular, we investigate the claim that hospital mergers involving physical restructuring are more likely to improve these measures than hospital mergers that are administrative in nature. Our primary analysis finds little evidence of an impact of hospital mergers on quality of care. While neither type of merger has an impact on most measures of financial status, mergers are associated with a reduction in total expenses that is greater when the merger involves physical restructuring (with the caveat that both types of merged hospitals produce fewer inpatient cases post-merger).</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 3","pages":"940-960"},"PeriodicalIF":1.1,"publicationDate":"2025-10-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659739","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}
Chris Muris, Horst Raff, Nicolas Schmitt, Frank Stähler
{"title":"How importers hedge demand uncertainty through dual sourcing and safety inventory","authors":"Chris Muris, Horst Raff, Nicolas Schmitt, Frank Stähler","doi":"10.1111/caje.70019","DOIUrl":"https://doi.org/10.1111/caje.70019","url":null,"abstract":"<p>We develop a dynamic model of inventory and trade to study how an importer may hedge demand uncertainty when importing involves an order lead time. We show that when the import cost is low, the importer optimally holds safety inventory (i.e., inventory of imported goods in excess of expected sales) to deal with demand surges. As the import cost rises, the firm switches from safety inventory to dual sourcing (i.e., to covering demand surges through quickly available but expensive domestic supplies while using imports for base-level demand). The endogenous adjustment of the hedging strategy implies that the volume of inventory and imports falls by more than expected sales as the import cost rises. This effect is magnified by an increase in demand uncertainty.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 3","pages":"1055-1069"},"PeriodicalIF":1.1,"publicationDate":"2025-10-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659766","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":"Immigrant business ownership and imports in Canada","authors":"Loretta Fung, Huju Liu","doi":"10.1111/caje.70017","DOIUrl":"https://doi.org/10.1111/caje.70017","url":null,"abstract":"<p>This paper empirically investigates the effect of immigrant business ownership on Canada's imports using a firm-level database with business ownership information and import data from 2002 to 2012. Our findings show that immigrant business ownership positively and significantly affects imports from the owners' origin, but it has little impact on imports from other regions. Compared to Canadian-owned firms, immigrant-owned firms are more likely to import, with a greater total value, a larger number of products and a higher average value per product from the owners' origin. The impact is larger for wholesalers than for manufacturers. The study also differentiates immigrant owners by their years since arrival. Firms owned by immigrants arriving within five years are more likely to import from the owners' origin than those owned by Canadians under the age of 45 by 14.66 percentage points, but this difference narrows to 6.22 percentage points when the owners stay for more than 15 years. Our findings suggest that while immigrant owners may enhance imports through connections with the origin, this advantage deteriorates with separation. Additionally, we find that immigrant business ownership has little effect on the total value of imports, as higher imports from the owners' origin are offset by lower imports from non-origin regions.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 3","pages":"961-989"},"PeriodicalIF":1.1,"publicationDate":"2025-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659734","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":"Contribution to a public good with altruistic preferences","authors":"Anwesha Banerjee","doi":"10.1111/caje.70011","DOIUrl":"https://doi.org/10.1111/caje.70011","url":null,"abstract":"<p>This paper presents a model of private provision of a public good where individuals have altruistic preferences and care about the private and public good consumption of the other members of their group. I compare the Nash level of the public good to the benchmark level of provision by a social planner who aggregates the preferences of group members. I find that income inequality can cause overprovision of the public good as compared to the planner's benchmark. To understand overprovision, I examine a second model where, in addition to contributing to the public good, members can give private transfers of income to other members they care about. The Nash equilibrium of the model with transfers is found to be closely connected to the equilibrium of the model without transfers. Overprovision can occur in the model without transfers because the richer individuals contribute to the public good as a way to improve the welfare of the poor (noncontributors to the public good) in the absence of private transfers. These results indicate that public goods cannot substitute the role of income transfers to the poor, even when individuals are altruistic, if there is extreme income inequality.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 3","pages":"1092-1122"},"PeriodicalIF":1.1,"publicationDate":"2025-10-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70011","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659735","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":"Can digital distribution defy the law of gravity?","authors":"Yuta Watabe, Han Yang, Eugene Kanasheusuki","doi":"10.1111/caje.70015","DOIUrl":"https://doi.org/10.1111/caje.70015","url":null,"abstract":"<p>Does the online delivery of digital content truly eliminate geographical trade frictions? Using cross-country sales data from Steam, the world's largest digital PC game distribution platform, we find that even in a purely digital environment, consumers are still less likely to purchase games developed in distant countries. This enduring geographical effect is primarily driven by changes in sales quantity rather than price. Further analysis points to information friction and consumer preferences as partial explanations. We develop a model incorporating these enduring frictions and quantify their significance in evaluating welfare gains.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 3","pages":"1123-1146"},"PeriodicalIF":1.1,"publicationDate":"2025-09-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659585","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":"Putting industries into the idea-flows model: A quantitative analysis","authors":"Liuchun Deng, Chi Zhang","doi":"10.1111/caje.70018","DOIUrl":"https://doi.org/10.1111/caje.70018","url":null,"abstract":"<p>This paper studies the dynamic evolution of the patterns of Ricardian comparative advantage from the perspective of knowledge diffusion. The theoretical analysis builds knowledge diffusion into a quantifiable model of trade by allowing for <i>industry-level</i> productivity to evolve through a spatial flow of ideas. This theoretical framework yields a law of motion of industry-level productivity across countries, capturing strong interdependence in the evolution of Ricardian comparative advantage. We calibrate the model to 78 economies and 15 manufacturing industries, spanning from 1991 to 2017. Our quantitative framework captures strong convergence in industry-level productivity and facilitates the identification of the key players that contribute most to global productivity growth. We use our model to draw a rich set of quantitative implications, including a welfare analysis of targeted restrictions of technology trade.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 3","pages":"1179-1210"},"PeriodicalIF":1.1,"publicationDate":"2025-09-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659637","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":"Automation in an estimated small open economy model","authors":"Nikolaos Charalampidis, Mananirina Razafitsiory","doi":"10.1111/caje.70012","DOIUrl":"https://doi.org/10.1111/caje.70012","url":null,"abstract":"<p>To shed light on the causes and consequences of automation decisions, this paper introduces robots replacing workers in a small open economy model with search and matching frictions and capital, estimated for the Canadian economy. A technological factor, the automation-specific technology, drives the probability of a firm to automate and, thereby, generates productivity gains and influences the fluctuations in productivity, investment, and the labour income share. Such a technology triggers a pro-cyclical labour displacement effect that exceeds its job creation effect but the net result on unemployment is quantitatively small, rendering it a small contributing force to unemployment fluctuations. A model with automation decisions fits better the data than models without them, influences the relative importance of supply-side and labour-market sources of business cycles, yields wage rigidity, and amplifies the volatility of productivity.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 3","pages":"1017-1043"},"PeriodicalIF":1.1,"publicationDate":"2025-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659529","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":"Evaluating the impact of export finance support on firm-level export performance: Evidence from Pakistan","authors":"Fabrice Defever, Alejandro Riaño, Gonzalo Varela","doi":"10.1111/caje.70013","DOIUrl":"https://doi.org/10.1111/caje.70013","url":null,"abstract":"<p>This paper evaluates the impact of two large export finance support schemes on firm-level export performance. The Export Finance Scheme (EFS) and the Long-Term Finance Facility for Plant & Machinery (LTFF) provide loans at subsidized interest rates for Pakistani exporters to finance working capital and the purchase of machinery and equipment, respectively. We combine customs data with information on firms' participation in each program between 2015 and 2017 and use matching combined with difference-in-differences to estimate the effect of the subsidies on firms' export values, the number of products exported and the number of destinations they serve. We find that both programs deliver a large and positive impact on export growth rates—primarily along the intensive margin—and do so in an effective way relative to the direct financial cost of the subsidies.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 3","pages":"1070-1091"},"PeriodicalIF":1.1,"publicationDate":"2025-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70013","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659494","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":"Healthcare utilization and labour market responses to health shocks","authors":"Hsuan-Chih (Luke) Lin, Atsuko Tanaka, Heng-Jui Chang, Chih-Han Hsueh","doi":"10.1111/caje.70014","DOIUrl":"https://doi.org/10.1111/caje.70014","url":null,"abstract":"<p>This paper examines the long-term impacts of negative health shocks on healthcare utilization and labour market outcomes by applying a dynamic difference-in-differences estimator to a sample of heart attack and stroke survivors in Taiwan. To investigate who is more affected by these health shocks, we estimate differential effects by age, healthcare utilization, and income. We find that low-income individuals are less likely to survive but more likely to utilize healthcare and remain employed after the health shocks, indicating the existence of a socioeconomic health gradient. Moreover, nonemployed workers are more likely to start working, which could be attributed to increased financial needs following the health shocks. Building upon our empirical findings, we conduct counterfactual assessments to evaluate health-enhancing policies from a social perspective.</p>","PeriodicalId":47941,"journal":{"name":"Canadian Journal of Economics-Revue Canadienne D Economique","volume":"58 3","pages":"1147-1178"},"PeriodicalIF":1.1,"publicationDate":"2025-09-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://onlinelibrary.wiley.com/doi/epdf/10.1111/caje.70014","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"145659528","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}