Abstract
Federal-Provincial Tax Equalization: An Evaluation. The Canadian scheme for transferring revenues from Ottawa to the poorer provinces is cast in an algebraic framework and then evaluated, both on an empirical and analytical level. Included is a sensitivity analysis designed to answer questions such as the effect on Saskatchewan's equalization payments of an increase in Nova Scotia's sales tax. Included also is a discussion of the possibility for provincial strategies under the scheme. Several alternative formulations for equalization are also presented and evaluated. The final substantive section of the paper focuses on the funding of the scheme.
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