It is generally accepted that convergence is well established for regional Canadian per capita outputs. The authors present evidence that long-run movements are driven by two stochastic common trends in this time series. This evidence casts doubt on the convergence hypothesis for Canada. Another...

I show that the process of Canadian economic growth differs across disaggregates (provinces and industries), with little mobility in the cross-section ordering, ie the poor stay poor and the rich stay rich. In the steady-state, industry disaggregates display divergence. I find that a...

This paper contributes to the policy evaluation literature by developing new strategies to study alternative policy rules. We compare optimal rules to simple rules within canonical monetary policy models. In our context, an optimal rule represents the solution to an intertemporal optimization...