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Is it Better to Live in a Basement, an Attic or to Get your own Place? Analyzing the Costs and Benefits of Institutional Change for Northwestern Ontario

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Author Info
Livio Di Matteo
J.C. Herbert Emery
Ryan English

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Abstract

We analyze the prospects for institutional change in the alienated hinterland region of northwestern Ontario. Among the scenarios we examine are union with Manitoba, provincial status, and regional government. We find that there would be political benefits for the residents of the Thunder Bay, Rainy River, and Kenora Census Districts from a union with Manitoba as they would have a larger voice in the Manitoba legislature than they have at Queen's Park in Toronto. As for the economic benefits, voters in northwestern Ontario would have to trade off having higher spending and taxes as part of Manitoba, against Ontario's lower spending levels that come with lower personal tax burdens. As for other options, the economic evidence supporting provincial status is for the most part ambiguous with no overwhelming case either for or against. Regional government is the easiest option to implement, but will do the least to end regional alienation. In the end, any changes from the status quo will require the mobilization of the political will of northwestern Ontarians and will have substantial political transactions costs.

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File URL: http://economics.ca/cgi/jab?journal=cpp&view=v32n2/CPPv32n2p173.pdf
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Publisher Info
Article provided by University of Toronto Press in its journal Canadian Public Policy.

Volume (Year): 32 (2006)
Issue (Month): 2 (June)
Pages: 173-196
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Handle: RePEc:cpp:issued:v:32:y:2006:i:2:p:173-196

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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. Bolton, Patrick & Roland, Gerard, 1997. "The Breakup of Nations: A Political Economy Analysis," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1057-90, November.
    Other versions:
  2. Giertz, J Fred, 1983. "State-Local Centralization and Income: A Theoretical Framework and Further Empirical Results," Public Finance = Finances publiques, , vol. 38(3), pages 398-408.
  3. Akerlof, George A, 1991. "Procrastination and Obedience," American Economic Review, American Economic Association, vol. 81(2), pages 1-19, May.
  4. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1027-56, November.
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  5. Edward J. Chambers & Donald F. Gordon, 1966. "Primary Products and Economic Growth: An Empirical Measurement," Journal of Political Economy, University of Chicago Press, vol. 74, pages 315. [Downloadable!] (restricted)
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