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The incentive effects of equalization grants on tax policy: evidence from Canadian provinces

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dc.contributor.authorFerede, Ergete
dc.date.accessioned2020-10-09
dc.date.accessioned2022-05-31T01:15:34Z
dc.date.available2022-05-31T01:15:34Z
dc.date.issued2017
dc.description.abstractThis article provides an empirical analysis of the incentive effects of equalization grants on business and personal income tax rates using panel data from Canadian provinces. We exploit the discontinuity in the equalization grant allocation formula to identify the exogenous income and incentive effects of equalization grants on tax policy. Our empirical results indicate that equalization grants provide provincial governments an incentive to raise their business and personal income tax rates. The results also suggest that if the equalization program in its current form was abandoned, then business and personal income tax rates would be lower in the grant receiving provinces.
dc.description.urihttps://library.macewan.ca/full-record/bth/125579247
dc.identifier.citationFerede, E. (2017). “The Incentive Effects of Equalization Grants on Tax Policy: Evidence from Canadian Provinces.” Public Finance Review 45(6): 723-747
dc.identifier.doihttps://doi.org/10.1177/1091142116666316
dc.identifier.urihttps://hdl.handle.net/20.500.14078/1824
dc.languageEnglish
dc.language.isoen
dc.rightsAll Rights Reserved
dc.subjecttax policy
dc.subjectintergovernmental grants
dc.subjectmarginal cost of public funds
dc.subjectfiscal federalism
dc.titleThe incentive effects of equalization grants on tax policy: evidence from Canadian provincesen
dc.typeArticle

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Department of Anthropology, Economics and Political Science