Cities in Canadian Federalism
We consider the place of cities, particularly large cities, in Canadian federalism from several perspectives. Although by most measures the current fiscal condition of Canadian cities seems fairly good, we argue that beneath this happy picture lies a less happy reality. Owing to the limited and relatively inelastic revenue base to which even the largest cities have access, the underlying basis of Canada’s urban prosperity is being eroded, with potentially damaging implications for national well-being over the long run. In an important sense, the roots of this problem lie in the fact that cities do not have any real role or voice in Canada’s federal structure. Since neither role nor voice is likely to be bestowed on them in the near future, however, we conclude by laying out a series of less fundamental actions that all levels of government have to undertake if they wish to maintain not only the present reputation of Canada’s big cities as ‘a nice place to live’ but also, more fundamentally, the urban dynamic that evidence around the world suggests increasingly underpins economic growth.
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- Andrew Haughwout & Robert Inman & Steven Craig & Thomas Luce, 2000. "Local Revenue Hills: A General Equilibrium Specification with Evidence from Four U.S. Cities," NBER Working Papers 7603, National Bureau of Economic Research, Inc.
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- Enid Slack & Richard M. Bird, 2004. "The Fiscal Sustainability of the Greater Toronto Area," International Tax Program Papers 0405, International Tax Program, Institute for International Business, Joseph L. Rotman School of Management, University of Toronto.