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eBook details

• Title: Incomplete Contracts and the Evolution of Canadian Federalism (Report)
• Author : Public Finance and Management
• Release Date : January 01, 2010
• Genre: Law,Books,Professional & Technical,
• Pages : * pages
• Size : 309 KB

Description

1. INTRODUCTION This paper complements the existing literature on the evolution of fiscal federalism in the mature federations, particularly Mathews and Grewal (1997), and Grewal and Sheehan (2004). The main focus of their work has been on documenting and explaining major shifts in fiscal balance in Australia since the Second World War. In Grewal and Sheehan (2004) it was suggested that although the mainstream economic theories of federalism shed little light on the evolutionary process of federations, the theory of incomplete contracts offers some promising insights for gaining a better understanding of the evolutionary process of fiscal federalism. In identifying the key drivers of the evolution of fiscal federalism in Canada, the purpose of this paper has been to see whether the same insights can be applied to the Canadian case.

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