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Measuring Government Growth in the Canadian Provinces: Decomposing Real Growth and Deflator Effects

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  • Louis M. Imbeau
  • François Pétry
  • Jean Crête
  • Geneviève Tellier
  • Michel Clavet

Abstract

In this paper, we argue that, when measuring government growth, we should distinguish among three growth phenomena: growth resulting from the broader scope of government activity, referred to as real growth; growth that results from higher costs of providing government goods and services, referred to as deflator effect; and growth in the simple ratio of government expenditure to gross domestic product (GDP), nominal growth, which is due to the combined impact of real growth and deflator effect. Using data on provincial government spending, we show that, over the 1971-95 period, there has been no real growth in three provinces and that there has been a substantial deflator effect on provincial government growth in all ten provinces.

Suggested Citation

  • Louis M. Imbeau & François Pétry & Jean Crête & Geneviève Tellier & Michel Clavet, 2001. "Measuring Government Growth in the Canadian Provinces: Decomposing Real Growth and Deflator Effects," Canadian Public Policy, University of Toronto Press, vol. 27(1), pages 39-52, March.
    • Handle: RePEc:cpp:issued:v:27:y:2001:i:1:p:39-52
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    References listed on IDEAS

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    1. Baumol, William J, 1972. "Macroeconomics of Unbalanced Growth: Reply," American Economic Review, American Economic Association, vol. 62(1), pages 150-150, March.
    2. Larkey, Patrick D. & Stolp, Chandler & Winer, Mark, 1981. "Theorizing About the Growth of Government: A Research Assessment," Journal of Public Policy, Cambridge University Press, vol. 1(2), pages 157-220, May.
    3. James Kau & Paul Rubin, 1981. "The size of government," Public Choice, Springer, vol. 37(2), pages 261-274, January.
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    Cited by:

    1. Manuel Jaén García & Luis Palma Martos, "undated". "Public Expenditure Dynamics In Spain: A Simplified Model Of Its Determinants," Working Papers 9-04 Classification-JEL :, Instituto de Estudios Fiscales.
    2. Kellermann, Kersten & Schlag, Carsten-Henning, 2012. "Small, Smart, Special: Der Mikrostaat Liechtenstein und sein Budget," KOFL Working Papers 13, Konjunkturforschungsstelle Liechtenstein (KOFL), Vaduz.

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