Economic potential of adopting genomic technology in Alberta’s tree improvement sector

The adoption of genomic technology and the use of improved seeds are expected to improve timber productivity in Alberta. However, this improvement will need to take place within the confines of the public-private nature of the sector where 93% of the total forest area is publicly owned. The purpose of this study is to explore the extent to which a timber harvest policy known as the allowable cut effect can affect the welfare outcomes of adopting genomics-assisted tree breeding. Using the forest industry of Alberta as the empirical setting, the economic returns to the adoption of this new breeding technology in lodgepole pine (Pinus contorta Dougl. ex Loud. var. latifolia Engelm.) and white spruce (Picea glauca (Moench) Voss) are calculated by estimating a timber supply model and a spatial equilibrium model. Under certain policy and technology improvement scenarios, the economic returns are negative, which would result in non-adoption of the technology. However, under other feasible conditions, the payoffs of genomics-assisted tree breeding research are large and positive. These results illustrate the important role that government policies can have on the returns to adopting new technologies.

Highways, Market Access, and Spatial Sorting

We design a parsimonious spatial equilibrium model featuring workers embodied with heterogeneous skills and non-homothetic preferences. In equilibrium, locations with improved commuting access become relatively more attractive to high-income earners. We empirically analyse the effects of the construction of the Swiss highway network between 1960 and 2010 on the population size and composition of municipalities. We find that the advent of a new highway access led to a long-term 24% increase in the share of top-income taxpayers and a 8% decrease in the share of low-income taxpayers, impacting segregation by income. Highways also contributed to job and residential urban sprawl.

Economic potential of adopting genomic technology in Alberta’s tree improvement sector

The adoption of genomic technology and the use of improved seeds are expected to improve timber productivity in Alberta. However, this improvement will need to take place within the confines of the public-private nature of the sector where 93% of the total forest area is publicly owned. The purpose of this study is to explore the extent to which a timber harvest policy known as the allowable cut effect can affect the welfare outcomes of adopting genomics-assisted tree breeding. Using the forest industry of Alberta as the empirical setting, the economic returns to the adoption of this new breeding technology in lodgepole pine (Pinus contorta Dougl. ex Loud. var. latifolia Engelm.) and white spruce (Picea glauca (Moench) Voss) are calculated by estimating a timber supply model and a spatial equilibrium model. Under certain policy and technology improvement scenarios, the economic returns are negative, which would result in non-adoption of the technology. However, under other feasible conditions, the payoffs of genomics-assisted tree breeding research are large and positive. These results illustrate the important role that government policies can have on the returns to adopting new technologies.

Valuing Domestic Transport Infrastructure: A View from the Route Choice of Exporters

A key input to quantitative evaluations of transport infrastructure projects is their impact on transport costs. We propose a new method of estimating this impact relying on widely accessible customs data: by using the route choice of exporters. We combine our method with a spatial equilibrium model to study the effects of the massive expressway construction in China between 1999 and 2010. We find transport costs are 20% lower on expressways than on regular roads. The expressways construction increases aggregate exports by 10% and domestic trade by 14%. It generates 5.1% welfare gains, implying a 150% net return to investment.

Assessing the benefits of a fertilizers program for the welfare on the corn (Zea mays L.) market in Chiapas, Mexico

Objective: To assess the impact that the Fertilizers Program for the Welfare would have on corn production and consumption in the state of Chiapas, Mexico. Methodology: A spatial equilibrium model applied to the corn market in the state of Chiapas for 2018 was used. To assess the benefits of policy implementation, producer and consumer surpluses were calculated with and without the Fertilizers Program. Results: The results indicate that the implementation of the program increases production and consumption of corn by 171 and 115 thousand tons, which would represent an increase of 13 and 8.3%, compared to the base model with no program. The producer and consumer surpluses would increase by 6 and 4.5 million pesos (MXN), which would represent an increase of more than 10 million pesos in the welfare of society in the state. Study limitations/implications: The positive effects on corn producers and consumers imply that the policy should be extended to all those regions that have the potential to increase production via their yield. Conclusions: The program has positive effects on the corn market by increasing corn production, consumption and societal welfare. dad.

Heterogeneous Workers and Federal Income Taxes in a Spatial Equilibrium

We study the geographic incidence and efficiency of an income tax by estimating a spatial equilibrium model with heterogeneous workers. The US income tax shifts households out of high-productivity cities, leading to locational inefficiency of 0.25 percent of output. Removing spatial tax distortions increases inequality because more educated households are more mobile and own larger shares of land. Flattening the tax schedule, or introducing cost-of-living adjustments or local wage adjustments leads to efficiency gains but causes substantial increases in inequality. Differences in mobility and land ownership across skill groups create an equity-efficiency trade-off that is unique to spatial settings. (JEL H24, H22, D31, J31, J24, R23)

The Impact of Immigration on Wages, Internal Migration, and Welfare

This article studies the impact of immigration on wages, internal migration, and welfare. Using U.S. Census data, I estimate a spatial equilibrium model where labour differs by skill level, gender, and nativity. Workers are heterogeneous in city preferences. Cities vary in productivity levels, housing prices, and amenities. I use the estimated model to assess the distributional consequences of several immigration policies. The results show that a skill selective immigration policy leads to welfare gains for low skill workers, but welfare losses for high skill workers. The negative impacts are more substantial among the incumbent high skill immigrants. Internal migration mitigates the initial negative impacts, particularity in cities where housing supplies are inelastic. However, the negative wage impacts on some workers intensify. This is because an out-migration of workers of a given type may raise the local wages for workers of that type, while reducing the local wages of workers with complementary characteristics. Overall, there are substantial variations in the welfare effects of immigration across and within cities. Further, I use the model to assess the welfare effects of the border wall between Mexico and the U.S. The results show that the potential benefits are significantly smaller than the proposed cost of construction.