Do longer license suspensions decrease impaired driving?

By Dayna Bartlett, Queen’s Economics M.A. student

In 2015, according to Statistics Canada, there were 72,039 police reported impaired driving incidents and 122 of those leading to death. Further, MADD Canada reports that on average, four people are killed daily by alcohol-related or drug-related traffic collisions. It is, therefore, no surprise that the concern regarding impaired driving is a subject that has continued to bring a range of heartaches and considerable debate. As it has been and remains one of the leading causes of death in Canada, there has been a great deal of research conducted, policies proposed, and laws implemented in the attempt to reduce the fatal collisions arising from impaired driving.

Under the Criminal Code of Canada, an individual is considered impaired and is subject to criminal charges if they drive while having consumed an amount of alcohol in which their blood alcohol concentration (BAC) level exceeds the legal limit of 80 milligrams per 100 milliliters of blood. In addition to the per se legal limit set by the Criminal Code of Canada, different provinces have also implemented warn ranges, in which penalties and sanctions may be applied even if an individual is driving below the 0.08 legal limit. One of the more recent laws that has been adopted by most Canadian provinces aimed to deter drunk driving are longer license suspensions that offenders face if found driving with BAC levels between 0.05 and 0.08.  Specifically, license suspensions have recently increased for first-time offenders past the initial 24-hour period to a minimum of 3 days, and even longer in certain jurisdictions.Read More »

Research: Oil Exporters Should NOT Price Level Target

By Stephen Snudden, JDI Student Fellow, Queen’s University

Monetary policy may focus on price level targeting (PLT) or inflation targeting (IT). The distinction between the two frameworks is that under IT, the central bank does not respond to temporary deviation of prices from trend. Bygones are bygones. In contrast, with PLT, past inflation performance matters and past deviations must be undone to restore the price level to the target path.Read More »

Working to better understand the relationship between student effort and parental investments

Eric Richert summarizes his essay, “Estimating an Effort Coordination Game Between Parents and Their Children,” which was a co-winner of the 2016 Scarthingmoor Prize for best MA essay in economics. Eric is currently a PhD student in the Queen’s Economics Department. 

By Eric Richert, Queen’s University

Student learning typically requires effort provision by parents, teachers, and students.  However, the early education literature all too often ignores student effort focusing only on the effort of parents and teachers. The effort decision of the child is often excluded from the optimization problem that is solved by the parent, or is a decision made by the parent.   The traditional model strangely ignores the child’s decisions. This assumption may make sense in early childhood but is less believable as students move into high school and beyond, where they are able to make their own decisions.

In my research, I examine the effects of allowing children to make their own decisions regarding the amount of effort they put into their studies.

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On the Benefits of Government Intervention in the Vancouver Housing Market

By Andrea Craig, JDI Student Fellow, Queen’s University

Housing prices, housing affordability, and the impact of offshore money on residential real estate in Vancouver are not new topics. However, policies to address these issues are new. Beginning last August, foreign purchases of residential real estate in Metro Vancouver are subject to an additional 15 percent property transfer tax. In addition, last month, the provincial government announced repayable down-payment assistance for first-time homebuyers in B.C.

As consumers we associate higher tax rates with higher prices. In the usual case of a tax imposed on all consumers, this is correct. However, in the case of the foreign property transfer tax, prices will decrease (or appreciate less). Here is a stylized analysis showing how the foreign property transfer tax decreases housing prices.Read More »

The Impact of Post-Secondary Funding on the Educational Attainment of Indigenous Students in Canada

By Maggie Jones, JDI Student Fellow, Queen’s University

In 1980, Canadian men with a bachelor’s degree earned approximately 32% more than those with a high school degree. For women, the equivalent figure was 44%.  By 2005 the university to high school wage premium had increased to about 41% for men and 51% for women (see Figure 1).  The rise in the wage premium over this time period shows just how important post-secondary education has become at an individual level.

In a recent working paper, titled Student Aid and the Distribution of Educational Attainment, I examine the effects of providing post-secondary funding on educational choices in the context of a large program for Indigenous students in Canada. Read More »

Understanding How Technological Change Affects the Wage Premium of Skilled Workers

By Wenbo Zhu, JDI Student Fellow, Queen’s University

Some technological advancements are skill-complementing, meaning that they tend to increase the productivity and demand for skilled workers. Other technological advancements are skill-replacing, meaning that they tend to reduce the demand for skilled workers and raise the productivity and demand for unskilled workers. Electronic computers are typically considered a prime example of skill-complementing technologies, whereas assembly lines and the use of interchangeable parts in the manufacturing industry are classic examples of skill-replacing technologies.

Disentangling the impacts of each type of technology is important for understanding of the impact of technological changes on labor markets. Read More »