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The Regional Distribution of Federal Fiscal Balances: Who Pays, Who Gets and Why It Matters

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Listed:
  • Robert Mansell

    (The School of Public Policy)

  • Mukesh Khanal

    (The School of Public Policy)

  • Trevor Tombe

    (The School of Public Policy)

Abstract

Any well-functioning federation is bound by shared values and by economic arrangements that ensure regions are better off inside the federation than outside it. But conflicts in both areas are inevitable, especially in a country as diverse as Canada. This paper focuses on the conflict within the Canadian federation involving the sharing of income and wealth, most often through federal revenue, spending and transfer policies. Many in the West, including more than 60 per cent of Alberta and Saskatchewan residents, believe they do not get a fair share from Confederation. A close look at the regional distribution of federal fiscal balances from 1961-2018 reveals very large differences

Suggested Citation

  • Robert Mansell & Mukesh Khanal & Trevor Tombe, 2020. "The Regional Distribution of Federal Fiscal Balances: Who Pays, Who Gets and Why It Matters," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 13(14), June.
    • Handle: RePEc:clh:resear:v:13:y:2020:i:14
    as

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    File URL: https://www.policyschool.ca/wp-content/uploads/2020/06/Federal-Fiscal-Balance-Mansell-Khanal-Tombe.pdf
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    References listed on IDEAS

    as
    1. Jack Mintz, 2019. "Two Different Conflicts in Federal Systems: An Application to Canada," SPP Research Papers, The School of Public Policy, University of Calgary, vol. 12(14), April.
    2. Albouy, David, 2012. "Evaluating the efficiency and equity of federal fiscal equalization," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 824-839.
    3. Lukas Albrecht & Trevor Tombe, 2016. "Internal trade, productivity and interconnected industries: A quantitative analysis," Canadian Journal of Economics, Canadian Economics Association, vol. 49(1), pages 237-263, February.
    4. Dahlby, Bed, 2019. "Reforming the Federal Fiscal Stabilization Program," SPP Briefing Papers, The School of Public Policy, University of Calgary, vol. 12(18), June.
    5. Trevor Tombe & Jennifer Winter, "undated". "Fiscal Integration with Internal Trade: Quantifying the Effects of Equalizing Transfers," Working Papers 2013-28, Department of Economics, University of Calgary, revised 04 Oct 2018.
    Full references (including those not matched with items on IDEAS)

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