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Explaining the Evolution of Government Size in the Canadian Provinces

Author

Listed:
  • François Petry

    (Université Laval, Quebec)

  • Louis Imbeau

    (Université Laval, Quebec)

  • Jean Crête

    (Université Laval, Quebec)

  • Michel Clavet

    (Université Laval, Quebec)

Abstract

Using time-series and time-series cross-section data from the 10 Canadian provinces, the authors test several competing explanations of government growth. Multivariate analyses reveal that the results are sensitive to how government size is measured. The authors find strong empirical support for the intergovernmental grants, the bureau voting, and the electoral budget cycle explanations irrespective of the measure of government size used. The party control explanation, the fiscal supply explanation, and part of Wagner's law give superior results when they are evaluated using real (adjusted) measures of government size than when they are evaluated using nominal (unadjusted) measures. The authors find virtually no support for the personal income part of Wagner's law.

Suggested Citation

  • François Petry & Louis Imbeau & Jean Crête & Michel Clavet, 2000. "Explaining the Evolution of Government Size in the Canadian Provinces," Public Finance Review, , vol. 28(1), pages 26-47, January.
    • Handle: RePEc:sae:pubfin:v:28:y:2000:i:1:p:26-47
    DOI: 10.1177/109114210002800102
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    References listed on IDEAS

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    Cited by:

    1. Manuel Jaen-Garcia, 2011. "Empirical Analysis of Wagner’s Law for the Spain’s Regions," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 1(1), pages 1-17, November.
    2. Ferris, J. Stephen & Voia, Marcel C., 2015. "The effect of federal government size on private economic performance in Canada: 1870–2011," Economic Modelling, Elsevier, vol. 49(C), pages 172-185.
    3. Manuel Jaén-García, 2018. "Wagner’s Law: A Revision and a New Empirical Estimation," Hacienda Pública Española / Review of Public Economics, IEF, vol. 224(1), pages 13-35, March.
    4. J. Stephen Ferris & Marcel-Cristian Voia, 2014. "Does Aggregate Government Size Effect Private Economic Performance in Canada?," Carleton Economic Papers 14-13, Carleton University, Department of Economics.

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