The objectives of this research are to develop a multi-region multi-sector CGE model with FDI that will allow assessing the impact of security measures on the Canadian and U.S. economies. We assess the impact in terms of Canada-U.S. bilateral trade and foreign direct investment, but also in...

This paper shows that when moving from the North American Free Trade Agreement (NAFTA) to a Customs Union (CU), the general equilibrium impacts on Canadian GDP and welfare, of removing Rules of Origin (ROO), are potentially larger than the small effects resulting from the adoption of a common...

This paper shows that the general equilibrium impacts on Canadian GDP and welfare, of liberalizing NAFTA Rules of Origin (ROO), largely dominate the small effects of adopting a Common North American External Tariff (CET). Therefore, proposals for a North American CU should not be dismissed...

This paper considers a broader fiscal policy framework in public debt management decisions by examining the interrelations between interest rates and the economy. This approach has the potential to result in a new optimal debt maturity structure. A shorter debt structure is generally less...

This paper shows that managing the risk of a budget deficit has (at least) two elements, the level of fiscal prudence, and the scope for discretionary measures (e.g., scope for reducing program spending). These two elements jointly determine the probability of a deficit outcome. The magnitude of...

Firstly, the study illustrates in a stochastic simulation model that permanent commitments to tax and spending measures can be enriched significantly without substantially raising the risk of a deficit outcome. This result is obtained in a framework where the fiscal authority is able to monitor...