A decade ago, several Canadian provinces replaced the retail sales taxes with value-added taxes. This paper estimates the effects of this tax substitution on consumer prices in the reforming provinces. Consistent with theory, we find that the resulting effective tax-rate changes were shifted...

The federal Equalization transfer program makes fiscal resources of "have-not" provinces depend on fiscal conditions in "have" provinces, which tends to destabilize provincial finances: the data show that equalized revenues of receiving provinces are more volatile than own-source revenues. But...