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The Accumulation of Public Debt in Canada

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Author Info

  • Ron Kneebone
  • John Leach

Abstract

Pierre Fortin's analysis of the causes of the increase in Canada's debt-to-output ratio is reconsidered. We find that the analysis hinges upon a number of supplementary decisions, and that reasonable choices give rise to results strikingly different from those obtained by Fortin. We also extend Fortin's analysis to examine the causes of debt accumulation by level of government. This exercise shows that the causes of debt accumulation are very different at the federal and subnational levels.

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Bibliographic Info

Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 27 (2001)
Issue (Month): 3 (September)
Pages: 297-312

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Handle: RePEc:cpp:issued:v:27:y:2001:i:3:p:297-312

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  1. Pierre Fortin, 1999. "The great Canadian slump: a rejoinder to Freedman and Macklem," Canadian Journal of Economics, Canadian Economics Association, vol. 32(4), pages 1082-1092, August.
  2. Kneebone, R.D. & McKenzie. K., 1998. "The Characteristics of Fiscal Policy in Canada," Papers 98-07, Calgary - Department of Economics.
  3. Charles Freedman & Tiff Macklem, 1998. "A Comment on "The Great Canadian Slump"," Canadian Journal of Economics, Canadian Economics Association, vol. 31(3), pages 646-665, August.
  4. Claude Giorno & Pete Richardson & Deborah Roseveare & Paul van den Noord, 1995. "Estimating Potential Output, Output Gaps and Structural Budget Balances," OECD Economics Department Working Papers 152, OECD Publishing.
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