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Federalism and Fiscal Policy: The Politics of Equalization in Canada

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  • André Lecours
  • Daniel Béland

Abstract

Fiscal equalization is a key political issue in many federal countries, including Canada. Yet, relatively few scholars have paid systematic attention to the political dimensions of Canada's federal equalization program. Taking an historical and institutionalist perspective, this article explores the politics of equalization policy in Canada, with a focus on the mid-2000s, a period when equalization policy suddenly became a major source of intergovernmental conflict. The main objective of the article is to explain why and how such political struggles over equalization developed. The explanation focuses on four factors: (i) the importance of executive discretion over the equalization program; (ii) the "inter-state" nature of Canadian federalism; (iii) the concentration of non-renewable natural resources in certain provinces; and (iv) the perceptions that surround the program. Copyright 2010, Oxford University Press.

Suggested Citation

  • André Lecours & Daniel Béland, 2010. "Federalism and Fiscal Policy: The Politics of Equalization in Canada," Publius: The Journal of Federalism, CSF Associates Inc., vol. 40(4), pages 569-596, Fall.
    • Handle: RePEc:oup:publus:v:40:y:2010:i:4:p:569-596
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    File URL: http://hdl.handle.net/10.1093/publius/pjp030
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    Cited by:

    1. Kyriacou, Andreas & Morral-Palacín, Noemí, 2015. "Secessionism and the Quality of Government: Evidence from a Sample of OECD Countries," MPRA Paper 116307, University Library of Munich, Germany.
    2. Prakash Chandra Jha, Prakash Chandra Jha, 2017. "Equalization Transfers in Canada: Emerging Challenges," MPRA Paper 82506, University Library of Munich, Germany.

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