IDEAS home Printed from https://ideas.repec.org/a/clh/resear/v13y2020i14.html
   My bibliography  Save this article

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

Author

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

    Download full text from publisher

    File URL: https://www.policyschool.ca/wp-content/uploads/2020/06/Federal-Fiscal-Balance-Mansell-Khanal-Tombe.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dahlby, Bed, 2019. "Reforming the Federal Fiscal Stabilization Program," SPP Briefing Papers, The School of Public Policy, University of Calgary, vol. 12(18), June.
    2. 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.
    3. 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.
    4. Lukas Albrecht & Trevor Tombe, 2016. "Internal trade, productivity and interconnected industries: A quantitative analysis," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(1), pages 237-263, February.
    5. Albouy, David, 2012. "Evaluating the efficiency and equity of federal fiscal equalization," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 824-839.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trevor Tombe & Jennifer Winter, 2021. "Fiscal integration with internal trade: Quantifying the effects of federal transfers in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 522-556, May.
    2. Andrew Agopsowicz & Bassirou Gueye & Natalia Kyui & Youngmin Park & Mohanad Salameh & Ben Tomlin, 2017. "April 2017 Annual Reassessment of Potential Output Growth in Canada," Staff Analytical Notes 17-5, Bank of Canada.
    3. Eduardo A. Haddad & Luis A. Galvis & Inácio F. Araújo-Junior & Vinicius A.Vale, 2018. "Impact Assessment of Scenarios of Interregional Transfers in Colombia," Documentos de Trabajo Sobre Economía Regional y Urbana 16767, Banco de la República, Economía Regional.
    4. Genqiang Lei & Xiaohong Huang & Penghui Xi, 2016. "The impact of transfer payments on urban-rural income gap: based on fuzzy RD analysis of China’s midwestern county data," China Finance and Economic Review, Springer, vol. 4(1), pages 1-17, December.
    5. David Albouy & Fernando Leibovici & Casey Warman, 2013. "Quality of life, firm productivity, and the value of amenities across Canadian cities," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 46(2), pages 379-411, May.
    6. Mark D. Partridge & Dan S. Rickman & M. Rose Olfert & Ying Tan, 2015. "When Spatial Equilibrium Fails: Is Place-Based Policy Second Best?," Regional Studies, Taylor & Francis Journals, vol. 49(8), pages 1303-1325, August.
    7. Manuel E. Lago & Santiago Lago-Peñas & Jorge Martinez-Vazquez, 2024. "On the effects of intergovernmental grants: a survey," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 31(3), pages 856-908, June.
    8. Agnosteva, Delina E. & Anderson, James E. & Yotov, Yoto V., 2019. "Intra-national trade costs: Assaying regional frictions," European Economic Review, Elsevier, vol. 112(C), pages 32-50.
    9. Albouy, David & Behrens, Kristian & Robert-Nicoud, Frédéric & Seegert, Nathan, 2019. "The optimal distribution of population across cities," Journal of Urban Economics, Elsevier, vol. 110(C), pages 102-113.
    10. Hakan Yilmazkuday, 2020. "Gains from domestic versus international trade: Evidence from the US," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 29(2), pages 199-210, February.
    11. Fabio Fiorillo & Michele G. Giuranno & Agnese Sacchi, 2021. "Asymmetric decentralization: distortions and opportunities," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 625-656, July.
    12. Benjamin Austin & Edward Glaeser & Lawrence Summers, 2018. "Jobs for the Heartland: Place-Based Policies in 21st-Century America," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 49(1 (Spring), pages 151-255.
    13. Blouri, Yashar & Ehrlich, Maximilian V., 2020. "On the optimal design of place-based policies: A structural evaluation of EU regional transfers," Journal of International Economics, Elsevier, vol. 125(C).
    14. Bev Dahlby & Kevin Milligan, 2017. "From theory to practice: Canadian economists’ contributions to public finance," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 50(5), pages 1324-1347, December.
    15. Nataliia Yaroshevych & Iryna Kondrat & Tetyana Kalaitan, 2024. "The Impact of the Mechanism for Aligning Horizontal Fiscal Imbalances on the Stability of the Financial System," JRFM, MDPI, vol. 17(2), pages 1-17, February.
    16. Chris Murphy, 2018. "Optimal fiscal equalisation and its application to Australia: updated," Departmental Working Papers 2018-13, The Australian National University, Arndt-Corden Department of Economics.
    17. Pablo D Fajgelbaum & Eduardo Morales & Juan Carlos Suárez Serrato & Owen Zidar, 2019. "State Taxes and Spatial Misallocation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(1), pages 333-376.
    18. Devin Bunten, 2017. "Is the Rent Too High? Aggregate Implications of Local Land-Use Regulation," Finance and Economics Discussion Series 2017-064, Board of Governors of the Federal Reserve System (U.S.).
    19. Alan J. Auerbach & Yuriy Gorodnichenko & Daniel Murphy, 2019. "Macroeconomic Frameworks," NBER Working Papers 26365, National Bureau of Economic Research, Inc.
    20. Boadway, Robin & Tremblay, Jean-François, 2012. "Reassessment of the Tiebout model," Journal of Public Economics, Elsevier, vol. 96(11), pages 1063-1078.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:clh:resear:v:13:y:2020:i:14. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bev Dahlby (email available below). General contact details of provider: https://edirc.repec.org/data/spcalca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.