Abstract
Debates about the size of government, which are often debates about what government should or should not do, need to be joined by a concern for the relative cost of government. Since 1981, the price in the public sector has grown faster than the price for GDP. We decompose the ratio between the price index for the public sector and that for GDP in the Canadian provinces and capture the governments' price advantage/disadvantage in different spending categories. Our analysis shows that governments with lower debt ratios and weaker fiscal rules are more vulnerable to rising costs, particularly during periods of higher commodity prices.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
