Fiscal Federalism and Equalization Policy in Canada: Political and Economic Dimensions by Daniel Béland & André Lecours & Gregory P. Marchildon & Haizhen Mou & M. Rose Olfert

Author:Daniel Béland & André Lecours & Gregory P. Marchildon & Haizhen Mou & M. Rose Olfert
Language: eng
Format: epub
Publisher: University of Toronto Press
Published: 2017-08-08T00:43:46.999000+00:00

Descriptive statistics on regional inequality and equalization payment effects

This section turns to some simple descriptive data concerning equalization payments in Canada from 1980–81 to 2015–163 fiscal year, including payment amounts, the conditions triggering payments, and possible effects. These simple statistics cannot be the basis of conclusions regarding the previously described theoretical or potential effects of equalization payments. That task is well beyond the scope of this chapter. However, they can be instructive by showing whether the descriptive statistics are or are not consistent with expectations arising from the theoretical literature and past empirical findings.

Beginning with aggregate and per capita equalization payment amounts, we next offer a descriptive overview of regional heterogeneity among the Canadian provinces using several economic indicators. This overview is of interest both to illustrate inequality among the 10 provinces and to examine whether there may be convergence over time, as may be expected if migration is efficient. Third, a description of interprovincial migration and international immigration is offered to address the issue of the mobility of labour in response to differential economic opportunities. Fourth, the per capita revenues and expenditures of provincial governments are provided as evidence of the provincial governments’ differing fiscal capacities and the possible relationships of these capacities with migration patterns. The chapter concludes with a brief discussion of ongoing and outstanding issues.

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