This article examines how revenue structures, through fiscal illusion effects, influence government spending. It does so with a regression model in which public spending depends on the perceived price of public services and other demand variables. The authors construct a perceived price term...

This paper examines the effect of the Harmonized Sales Tax (HST) on consumer prices for the three participating Atlantic Canada provinces from April 1997 to March 1999. Using aggregate and disaggregate (eight-components) consumer price index (CPI) data, we conduct counter-factual analysis and...

In April 1989, the federal Minister of Finance announced plans to implement the Goods and Services Tax (GST), an invoice- based value-added tax, as a replacement for the present Manufacturers' Sales Tax (MST). One of the stated reasons for this change was the concern about the regressivity of...

Economy Context Technological changes, along with the globalization of markets, are transforming industrial countries into knowledge-driven economies. This shift has made human capital one of the leading public policy themes. However, existing measures of investment do not allow policymakers to...