Abstract

Focusing on public opinion, this paper studies the politics of fiscal federalism by analysing support for the level and conditionality of intergovernmental transfers for healthcare. Leveraging a representative survey of the Canadian population conducted in 2022, we show that preferences for fiscal federalism reflect territorial identity and ideology. Left-wing respondents are more likely than right-wing ones to prefer higher, conditional transfers. However, Canadians with a predominant provincial identity prefer more decentralisation and therefore unconditional transfers, regardless of their ideology. Hence, the politics of fiscal federalism cannot be strictly understood as a reflection of a left-right cleavage; identity also matters.

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