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Dissonance in Fiscal Policy: A Power Approach

In: Do They Walk Like They Talk?

Author

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  • Louis M. Imbeau

    (Université Laval)

Abstract

The objective of this paper is to explore the relationship between speech and action in the budgetary process of provincial governments in Canada through a power approach. Using a three-dimensional approach to the concept of power, I ask the following question: Does the fiscal conservatism (liberalism) expressed by politicians in their policy speeches correspond to the fiscal discipline (indiscipline) they manifest when they improve (deteriorate) their budget balance? In other words, is there policy consonance or dissonance in the fiscal policy of the governments of Alberta, British Columbia, Ontario, and Québec, and under which conditions is dissonance useful for the general welfare? I proceed in two steps. First, I propose a conceptualization of the relationship between speech and action based on an analysis of power relationships in the policy process, which allows me to identify the conditions of a benevolent dissonance in fiscal policy. Second, I propose an empirical test of the model measuring fiscal discipline in action and fiscal conservatism in speeches and show that indeed provincial premiers often lack transparency but that this dissonance is very often beneficial for reaching the goal of properly financing public services.

Suggested Citation

  • Louis M. Imbeau, 2009. "Dissonance in Fiscal Policy: A Power Approach," Studies in Public Choice, in: Louis M. Imbeau (ed.), Do They Walk Like They Talk?, chapter 0, pages 167-184, Springer.
    • Handle: RePEc:spr:stpchp:978-0-387-89672-4_10
    DOI: 10.1007/978-0-387-89672-4_10
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    Cited by:

    1. Pádraig Carmody, 2011. "An Informationalised Economy in Africa? The Impact of New ICT on the Wood Products Industry in Durban, South Africa," The Institute for International Integration Studies Discussion Paper Series iiisdp383, IIIS.
    2. Pierre-Marc Daigneault & Dominic Duval & Louis M. Imbeau, 2018. "Supervised scaling of semi-structured interview transcripts to characterize the ideology of a social policy reform," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(5), pages 2151-2162, September.
    3. Alexander Herzog & Slava Mikhaylov, 2010. "A new Database of Parliamentary Debates in Ireland, 1922--2008," The Institute for International Integration Studies Discussion Paper Series iiisdp338, IIIS, revised Jul 2010.
    4. Alexander Herzog & Slava Mikhaylov, 2010. "Estimating Government Discretion in Fiscal Policy Making," The Institute for International Integration Studies Discussion Paper Series iiisdp339, IIIS, revised Jul 2010.

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