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Government Production Technologies in Canada: 1961 to 2000

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  • Krishna Murty

Abstract

This study explores the long-term trends of government production technologies in Canada for the past four decades, i.e. from 1961 to 2000, using the annual Canadian input-output data. According to the industry technology concept of input-output analysis, each industry chooses its human and material resource requirements and uses them as inputs in its production processes. The shares of inputs to the total spending depict the technologies employed by the corresponding industries. As such, the long-term shifts in the input shares reveal the trends of industry production technologies for a given period. This study draws on this concept to explore the long-term trends of government production technologies. It also discusses the underlying reasons for the observed trends. Among other things, the study shows that the government production technologies in Canada were influenced not only by the changing functional patterns, but also by the changing input patterns of government expenditure. In addition, the combined shares of employee compensation and capital consumption, both own-account resources, steadily declined. On the other hand, the combined shares of purchased services and other inputs, which are resources acquired from outside sources, gradually rose during the past four decades.

Suggested Citation

  • Krishna Murty, 2004. "Government Production Technologies in Canada: 1961 to 2000," Economic Systems Research, Taylor & Francis Journals, vol. 16(4), pages 413-433.
    • Handle: RePEc:taf:ecsysr:v:16:y:2004:i:4:p:413-433
    DOI: 10.1080/0953531042000304281
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