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Carbon pricing systems have emerged in Canada at provincial and federal levels to reduce CO2 emissions. However, cross-border electricity trade with the U.S. is already extensive, and although Canada is currently a net exporter, policy changes could alter these trade dynamics. Since CO2 emissions are currently unregulated in many U.S. states, there is a concern that this incomplete regulatory coverage will lead to emissions leakage, as electric generation and emissions shift toward these unregulated regions. This paper examines potential power sector emissions leakage and distributional implications across provinces from Canadian carbon pricing. Using an integrated model of electric sector investments and operations with detailed spatial and temporal resolutions, the analysis demonstrates how emissions leakage through trade adjustments can be non-trivial fractions of the intended emissions reductions even in the presence of leakage containment measures. Magnitudes of long-run leakage rates from Canadian carbon pricing depend on market and policy assumptions (e.g., natural gas prices, projected load growth, long-run demand elasticities, timing of future U.S. CO2 policy), ranging from 13% (high gas price scenario with border carbon adjustments) to 76% (lower gas price scenario without antileakage measures), which are higher than reported literature values for national policies. When leakage containment measures are implemented, net emissions and leakage rates decrease, but gross emissions in Canada and policy costs increase. Leakage persists in alternate scenarios with constrained transmission expansion, higher natural gas prices, lower load growth, higher price elasticities of demand, and U.S. adoption of carbon pricing, but leakage rates decrease under these conditions. [ABSTRACT FROM AUTHOR]

Summary: In this paper we study the own‐price elasticity for gasoline in demand systems involving three expenditure categories in the transportation sector in Canada: gasoline, local transportation, and intercity transportation for Canadian households from 1997 to 2009. In particular, we conduct a replication of Chang and Serletis, (The demand for gasoline: Evidence from household survey data, Journal of Applied Econometrics, 2014, 29, 291–343) hereafter CS, who—using TSP version 5.1—estimated Deaton and Muellbauer, 's Almost Ideal Demand System (AIDS) (American Economic Review, 1980, 70, 312–326), Banks et al., 's Quadratic AIDS (Review of Economics and Statistics, 1997, 79, 527–539), and Barnett, 's Minflex Laurent (ML) (Journal of Business and Economic Statistics, 1983, 1, 7–23) models to demand systems consisting of these three goods, analyzing and enforcing theoretical economic regularity—that is, the compliance of estimates with positivity, monotonicity, and curvature. Using the R statistical language instead, we found that our estimates are similar to those of CS using data for single‐member households and married couples without children, but differ for households with one child. (All replicated estimation tables in CS, as well as our full implementation, are available as supplementary material in the online version of this paper.) However, using a more flexible copula model, a total of 168 possible specifications for each type of household and their resulting gasoline own‐price elasticities are also estimated. We find that allowing for skewness in the marginal distributions of local transportation budget shares greatly improves the Bayesian information criterion (BIC) of our models. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Agricultural Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Using annual data from Canadian provinces, this paper studies the effects of a drastic reduction in Canadian cigarette taxes in 1994 on cross-border smuggling. The results show that the policy was successful in that the border prices seem to not have had a statistically significant impact on cigarette sales. The own price elasticity of cigarette demand in Canada is estimated to be around -0.7. The elasticity is slightly lower when the border-price effects are taken into account and is larger than the corresponding estimates for the USA, implying that dollar-for-dollar there might be greater opportunities for reducing smoking in Canada through higher taxes than the USA. [ABSTRACT FROM AUTHOR]

ABSTRACT This paper investigates the influence of inventories in explaining the magnitude of price transmission. Using data from the Canadian chicken industry, a flexible non-linear inference framework detects significant non-linearities in the relationship between farm and wholesale prices. An empirical model is proposed to estimate a price transmission elasticity and a target inventory equation in the spirit of linear-quadratic inventory models in the macroeconomics literature. A generalized method of moments estimator measures the impact of inventories on price transmission and accounts for the potential correlation between sales and wholesale prices. The price transmission elasticity is lower (higher) when inventories are above (below) the target level. [ABSTRACT FROM AUTHOR]

As lottery becomes a more and more important source for government tax revenue, one opinion argues that governments should strategically manage different lotteries and coordinate the prices of different lotteries. Although, in the literature, many studies have examined single lottery price elasticity, little has been done to understand the relationship between different lotteries. We examine the substitution effect between two almost identical national lotteries in Canada: Lotto 6/49 and Super 7 (Now called Lotto Max). By exploiting a social experiment, we employ a Regression Discontinuity method to estimate the elasticity of the lotteries. We find surprisingly low cross elasticity between these two, almost identical, Canadian lotteries. If the nominal ticket price of one lottery doubles, the demand for the other lottery does not change significantly. This puzzlingly low substitution effect between the two, almost identical, Canadian lotteries provides a benchmark for future theoretical studies. [ABSTRACT FROM AUTHOR]

This paper presents estimates of the rebound effect and other elasticities for the Canadian light-duty vehicle fleet using panel data at the provincial level from 1990 to 2004. We estimate a simultaneous three-equation model of aggregate demand for vehicle kilometers traveled, vehicle stock and fuel efficiency. Price and income elasticities obtained are broadly consistent with those reported in the literature. Among other results, an increase in the fuel price of 10% would reduce driving by ~2% in the long term and by 1% the average fuel consumption rate. Estimates of the short- and long-term rebound effects are ~8 and 20%, respectively. We also find that an increase in the gross domestic product per capita of 10% would cause an increase in driving distance of 2–3% and an increase of up to 4% in vehicle stock per adult. In terms of policy implications, our results suggest that: (1) the effectiveness of new fuel efficiency standards will be somewhat mitigated by the rebound effect and (2) fuel price increases have limited impacts on gasoline demand. [ABSTRACT FROM AUTHOR]

This paper examines the effect of price per call minute on international telecommunications demand for calls made from Greece to five destination countries: Australia, the USA, Canada, the UK, and Germany. For this purpose the authors consider two different models, one with constant price elasticity, the log-linear demand function, and another one with time varying price elasticity, log-linear demand where all variables except price are in logarithms. These models were estimated for calls made during peak and off-peak periods, using quarterly data from 1997:I to 2003:IV. The outgoing traffic includes volume of calls in minutes made by the incumbent only and by the incumbent and the mobile providers. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract: Revised productivity accounts recently released by Statistics Canada are used to estimate a Klump–McAdam–Willman (KMW) normalized CES supply‐side system for the half‐century 1961–2012. The model permits distinct rates of factor‐augmenting technical change for capital and labour that distinguish between short‐term versus long‐term effects, as well as a non‐unitary elasticity of substitution and time‐varying factor shares. The advantage of the Canadian data for this purpose is that they provide a unified treatment of measurement issues that have had to be improvised in the US and European data used by previous researchers. In contrast to previous results, we find that an elasticity of substitution and distinct factor biases of technological progress are not well determined by the model. For the Canadian data, the KMW model does not appear to provide a framework that overcomes the classic Diamond–McFadden–Rodriguez non‐identification result. That impossibility theorem is manifested in our findings, not overcome by them. Résumé: Est‐ce que les biais de facteurs et la substitution entre facteurs de production sont identifiables? Résultats pour le Canada. On utilise les données révisées sur la productivité récemment publiées pat Statistiques Canada pour calibrer un système d’offre normalisé à la Klump–McAdam–Willman (KMW) avec élasticité constante de substitution pour la période 1961‐2012. Le modèle permet un changement technique qui implique des taux distincts d’augmentation de productivité pour le travail et le capital qui distingue entre les effets à court et à long terme, ainsi qu’une élasticité de substitution non‐unitaire et des parts variables des facteurs dans le temps. L’avantage des données canadiennes pour ce genre d’analyse est que les problèmes de mesure ont été traités de manière uniforme alors que dans les données américaines et européennes, utilisées antérieurement par les chercheurs, le traitement des problèmes de mesure a été improvisé. Contrairement aux résultats antérieurs, on découvre qu’une élasticité de substitution et les biais du progrès technique en faveur de divers facteurs de production ne sont pas bien déterminés par le modèle. Pour les données canadiennes, le modèle KMW ne semble pas fournir un cadre de référence qui permette de surmonter le problème classique de non‐identification soulevé par les résultats de Diamond–McFadden–Rodriguez. Le théorème d’impossibilité reste entier dans les résultats obtenus et ne sont pas surmontés par es nouveaux résultats. [ABSTRACT FROM AUTHOR]

Copyright of Empirical Economics is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This paper presents empirical assessments of the competitiveness in the Canadian banking, trust company, and mortgage company industries, which support the view that parts of Canada's financial system exhibit characteristics of contestability. Since asset concentrations in Canada's financial system do not seem to be decreasing, and since it has long been believed that financial industry concentration impairs competitiveness, making such assessments seems worthwhile. We use a non-structural estimation technique to evaluate the elasticity of total revenues with respect to changes in input prices. The significantly positive values of the elasticity measure indicate that Canada's financial system does not exhibit monopoly power. [ABSTRACT FROM AUTHOR]

In a recent paper, Woodland (1975) presents estimates of factor demand functions for three different factors in 10 major Canadian industrial divisions. An important contribution of that paper is that Woodland is able to comment on the partial elasticities of substitution amongst the various factors and from this to deduce the appropriateness of traditional functional forms to describe the production technologies. One shortcoming of Woodland's research is that, as he himself admits, 'while it would be desirable to disaggregate labour into at least two categories, data limitations rendered this impossible.'
In this paper we disaggregate both capital and labour inputs. Using this date we estimate a four-input translogarithmic cost function and, in contrast to Woodland's results, we find it to be well-behaved. Our estimates of the partial elasticities of substitution based on this cast function differ substantially from the Berndt-Christensen study of the U.S. Manufacturing Sector. [ABSTRACT FROM AUTHOR]

This paper investigates the effect of automation on the occupational demand for labor using modern econometric demand theory. We are able to estimate labor demand functions derived from a production process characterized by variable elasticities of substitution, nonhomothetic output expansion effects, and nonneutral technical change. The model is applied to a large Canadian tele- communications firm, Bell Canada, for the period 1952-1972 when detailed data on four occupational groups, capital, materials, output, and the extent of automation are available. Our empirical results demonstrate the strong effects of innovative activity in this industry. Technical change was capital-using and labor-saving, with the labor-saving impact being felt most severely by the least skilled occupations. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Public Policy is the property of University of Toronto Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Public Policy is the property of University of Toronto Press and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

We estimate effective price elasticities for different quantiles of the demand distribution of the UK National Lottery and the Canadian Lotto 649. We show that price elasticities vary significantly from draw to draw and have a tendency to increase with lottery participation and jackpot size. Our findings indicate that setting lottery rules on the basis of mean effective price elasticities should be faced with caution because expected profits are negatively related to the evident variation of elasticities among lottery draws. We also simulate alternative active rollover distributions and show that limiting the rollover accumulation by withholding portions and ploughing them back in future nonrollover draws is potentially profitable. [ABSTRACT FROM PUBLISHER]

A model of the elasticity of indexation, contract duration and non-contingent wage adjustment is estimated using Canadian wage agreements. Results suggest that the degree of indexation and contract duration are interdependent and arc affected by their past values, labour market conditions and inflation uncertainty. The correlation between the industry product prices and the CPI affects the degree of indexation. Non-contingent wage adjustment depends on expected inflation, uncompensated past inflation, duration and indexation values, past and present, and labour market conditions. This model explains total wage adjustment as well as more aggregative models designed solely for that purpose. [ABSTRACT FROM AUTHOR]

The effects of resource depletion on economic growth depend critically on the elasticities of substitution between non-renewable natural resources and reproducible inputs. Estimation of the elasticities of substitution for natural resources has been hindered by the absence of data on their prices, which results from the prevalence of vertical integration in natural resource industries. In this paper we use the theory of restricted cost functions to develop a general procedure for estimating substitution possibilities for unpriced inputs. Estimation of the model with data for the Canadian metal mining industry indicates that the elasticities of substitution for the natural resource, metallic ore, are equal to unity. [ABSTRACT FROM AUTHOR]

Abstract--This paper examines nine models of aggregate import demand for each of five countries (Canada, Germany, Japan, United Kingdom, and United States) in an attempt to determine which of the frequently used single equation models of import demand are appropriate. An appropriate model is defined as one which generates unbiased (or at least consistent) and efficient elasticity estimates. While models without lagged adjustments and Almon lag models perform rather poorly according to these criteria, models including dynamic behavior through lagged values of the dependent variable are frequently accepted. Results are reported regarding functional form, measures of variables, and structural shift. [ABSTRACT FROM AUTHOR]

Abstract. Manufacturing industries consume a large share of total energy consumption in Canada. The demand for energy is estimated for the years 1949-70 using annual national data. A non-homothetic generalized Leontief cost function is used to generate demand equations for labour, capital, energy, and materials. The own-price elasticity of energy is small, but substantial substitution possibilities exist. Homotheticity is rejected, and our results are very sensitive to this assumption. Simulations are run to show that the effects of large energy price increases on costs are small. Since energy and capital are complements, the major consequence of an energy price increase is a decline in the quantity of energy and capital demanded. [ABSTRACT FROM AUTHOR]

Focuses on a study which examined income and price elasticities and non-price rationing in import demand in Canada from 1956 to 1973. Methodology; Results of the study; Conclusions.

In this paper we have shown theoretically that a high correlation between alternative measures does not ensure that results in empirical studies will be insensitive to the choice of concentration measure and have presented empirical evidence for Canadian manufacturing industries showing that misspecification of the concentration measure leads to changes in the magnitude of estimated elasticities that are important quantitatively. In particular, if an n-firm concentration ratio is used instead of the theoretically correct Herfindahl index in industrial structure-performance relationships the responsiveness of performance to concentration will be biassed upwards and the resulting elasticity overestimated by some one hundred to two hundred percent. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Agricultural Economics is the property of Wiley-Blackwell and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Canadian Journal of Forest Research is the property of Canadian Science Publishing and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

In this article, we estimate income and substitution labour supply and participation elasticities for Canadian married women using data from the Survey of Labour and Income Dynamics 1996–2005. We use the Canadian Tax and Credit Simulator (CTaCS) and detailed information on the structure of income at the household level to compute the marginal tax rates faced by each individual. We then use these marginal tax rates to compute net own-wage, spouse-wage, and nonlabour income. We show how the magnitude of the estimated elasticities varies depending on whether net or gross wages and income are used in the estimation procedure, and quantify biases caused by using average tax rates instead of marginal tax rates. Finally, because marginal tax rates vary significantly over the sample, we use quantile regressions to compare elasticities at different points of the hours distribution. Overall, our results show that public policies now have, on average, less scope for influencing hours of work than 10 years ago. However, the quantile results show that wives working fewer hours per week are more sensitive to changes in their own or spouses’ wages. [ABSTRACT FROM PUBLISHER]

In this study we explore the link between household expenditures and wealth across the age distribution by examining the elasticity of consumption spending from different types of wealth. We use a new source of harmonized wealth micro data for five countries: Canada, Finland, Italy, Germany and the US. Our results indicate that the effect of housing wealth dominates the effect of financial wealth in Finland, Italy, Germany, the US, and also in Canada for certain age groups. We find consumption responsiveness to housing wealth to be statistically significantly lower for younger households. The analysis also confirms the existence of between-country differences. [ABSTRACT FROM PUBLISHER]

This study provides estimates of the price and Morishima substitution elasticities between energy and non-energy inputs in two Canadian energy-intensive manufacturing industries: Primary Metal and Cement. The elasticities are estimated using annual industry-level KLEM data (1961-2003) and relying on two flexible functional forms: the Translog and the Symmetric Generalized McFadden (SGM) cost functions. In addition to the point estimates, the confidence intervals of the elasticities are computed using Studentized bootstrap resampling techniques. For both industries, the estimation results suggest that capital, labour, material and energy are pairwise substitutes and that energy is the most substitutable input. However, the low magnitudes of the estimated elasticities do not seem to offer great flexibility to these industries to adapt to high increases in energy prices. [ABSTRACT FROM AUTHOR]

We estimate the dynamic Fourier expenditure system to obtain consistent estimates of short-run and long-run Morishima elasticities of substitution for Canadian liquid assets. We argue that the variability of the estimated elasticities and evidence of less than perfect substitution between monetary assets interferes with the successful use of simple-sum aggregates and traditional log-linear money-demand functions. Calibrations semi-non-paramétriques de la substitution pour des actifs monétaires canadiens . Les auteurs calibrent le système dynamique de dépenses à la Fourier pour obtenir des estimations cohérentes des élasticités de substitution à la Morishima à court et à long termes pour des actifs monétaires canadiens. Ils suggèrent que la variabilité des élasticités estimées et la constatation que la substitution n’est pas parfaite entre les actifs monétaires rendent difficile un usage heureux des agrégats de simple somme et des fonctions log-linéaires de demande de monnaie. [ABSTRACT FROM AUTHOR]

A critical input for assessing the optimal size of disability insurance programs is the elasticity of labor force participation with respect to the generosity of benefits. Unfortunately, this parameter has been difficult to estimate in the context of the U.S. disability insurance program since all workers face an identical benefits schedule. I surmount this problem by studying the experience of Canada, which operates two distinct disability insurance programs: for Quebec and for the rest of Canada. The latter program raised its benefits by 36 percent in January 1987, whereas benefits in Quebec were constant. I find a sizable labor supply response to the policy change; my central estimates imply an elasticity of labor force nonparticipation with respect to disability insurance benefits of 0.28-0.36. [ABSTRACT FROM AUTHOR]

Abstract--Elasticities for beer, wine and spirits are estimated for each of the provinces of Canada over the period 1956-1983, using unrestricted dynamic regressions modelled after the error-correction mechanism. Alternative long-run estimates are also obtained from cointegrating regressions. Estimates vary markedly across provinces and suggest that increases in price will reduce consumption of all beverages in the short run, but in the long run no evidence is found that spirits use is price-sensitive. Increases in the legal drinking age reduce consumption in the short run but there is little indication of a long-run effect. The estimated income elasticity of beer is small while the estimated income elasticities for spirits and wine are substantially larger, especially in the long run. [ABSTRACT FROM AUTHOR]

In this paper the pass-through of exchange rate changes into the real prices of domestically produced and imported goods in Canadian manufacturing industries is examined through industry estimates of the pass-through elasticities and a cross-section analysis of their determinants. We find that the domestic pass-through elasticity increases with the effect of the exchange rate on domestic costs of production, the export share, the elasticity of substitution between imports and domestic goods, and the domestic advertising intensity. The import elasticity increases with the elasticity of substitution and the rate of price protection and decreases with advertising intensity. JEL Classification: L60, F14. Les effets de changements dans le taux de change sur les prix réels dans les industries manufacturières canadiennes. Ce mémoire examine les effets des changements dans le taux de change sur les prix réels des biens produits au Canada ou importés pour les industries manufacturières canadiennes en construisant des estimés par secteur des élasticités de transfert et en examinant leurs déterminants dans une analyse trasnversale. On montre que l'élasticité de transfert domestique s'accroît à proportion que l'effet du taux de change sur les coûts internes de production, la part des exportations, l'élasticité de substitution entre importations et biens domestiques, et l'intensité de publicité au plan interne sont importants. L'élasticité des importations s'accroît avec l'élasticité de substitution et le taux de protection des prix, et décroît avec le niveau d'intensité de la publicité. [ABSTRACT FROM AUTHOR]

Presents information on a study which tested how academic research influenced industrial productivity in Canada. Assumption about academic research and development; Equation on the constant elasticity of the substitution-translog variable cost function; Impact of academic research on manufacturing cost characteristics.