On the pass‐through rate of the Nutrition North Canada subsidy

2025/10/26 by Jamie Naylor, B. James Deaton, Alan Ker

paper · doi:10.1111/cjag.70004

crossref issued 2025/10/26 · crossref published 2025/10/26 · crossref published-online 2025/10/26 · crossref created 2025/10/27 · crossref published-print 2025/12/01 · crossref deposited 2026/01/09 · crossref indexed 2026/07/24

Abstract

Abstract We estimate the effect of Canada's Nutrition North subsidy using an appropriate econometric strategy that accounts for heterogeneous effects across different market structures. This strategy leads to economically and statistically different estimates of the pass‐through rate than previous estimates. We find evidence that, on average, subsidy increases are fully passed on to the intended recipients. Our findings have important policy implications for addressing the high price of food in northern and remote communities, especially when compared to previous estimates that suggest a large portion of the subsidy fails to reach consumers.

Citations

• What Are We Weighting For?

Related

• Give and take? Child benefits and prices in Northern Canada
• The Local Impacts of Agricultural Subsidies: Evidence from the Canadian Prairies
• The Role of Carbon Pricing in Food Inflation: Evidence from Canadian Provinces
• Building Representative State Groupings in an Input-Output Model for the Development of an Economic Impact Calculator for Nutrition Incentive Programs
• Incidence and Distributional Effects of Value Added Taxes