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The Characteristics of Fiscal Policy in Canada

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Author Info
Ronald D. Kneebone
Kenneth J. McKenzie

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Abstract

We employ a methodology that distinguishes between discretionary and non-discretionary changes in provincial and federal fiscal policy. We find substantial variation in the discretionary policy of Canadian governments, across both time and jurisdictions. We uncover a marked asymmetry in the composition of discretionary fiscal stances. Fiscal retrenchments have tended to be dominated by a "balance" between spending cuts and tax increases, while fiscal expansions have been largely expenditure dominant. This asymmetry suggests a historic bias toward expanding the size of the public sector. The most recent fiscal retrenchment at both the federal and provincial level (1993-1996) breaks from this historical tendency by being largely expenditure dominant.

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File URL: http://economics.ca/cgi/jab?journal=cpp&view=v25n4/CPPv25n4p483.pdf
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Publisher Info
Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 25 (1999)
Issue (Month): 4 (December)
Pages: 483-501
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Handle: RePEc:cpp:issued:v:25:y:1999:i:4:p:483-501

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Olivier Jean Blanchard, 1990. "Suggestions for a New Set of Fiscal Indicators," OECD Economics Department Working Papers 79, OECD, Economics Department. [Downloadable!]
  2. Alesina, A. & Perotti, R., 1995. "Fiscal Expansions and Adjustments in OECD Countries," Discussion Papers 1995_25, Columbia University, Department of Economics.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Hauptmeier, Sebastian & Heipertz, Martin & Schuknecht, Ludger, 2006. "Expenditure reform in industralised countries : a case study approach," ZEW Discussion Papers 06-50, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  2. Ron Kneebone & John Leach, 2001. "The Accumulation of Public Debt in Canada," Canadian Public Policy, University of Toronto Press, vol. 27(3), pages 297-312, September. [Downloadable!] (restricted)
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This page was last updated on 2009-12-9.

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