Regional Effects of Taxes in Canada: an Applied General Equilibrium Approach

33 Pages Posted: 28 Jun 2004 Last revised: 6 Oct 2022

See all articles by Rich Jones

Rich Jones

Independent

John Whalley

University of Western Ontario - Department of Economics; National Bureau of Economic Research (NBER); CESifo (Center for Economic Studies and Ifo Institute); Centre for International Governance and Innovation (CIGI)

Date Written: December 1986

Abstract

This paper reports on an applied general equilibrium regional model for Canada which is used to investigate the regional effects of taxes. Earlier, literature on regional tax effects is reviewed and the main features of the model are briefly described. Existing literature on regional tax effects is largely non-quantitative, and does not discuss several important regional features of taxes, such as taxes which are predominantly on products or industries located in particular regions. Results suggest that regional effects of taxes can be significant, and in the Canadian case at least, do not tend to counterbalance one another. In general, richer regions tend to lose and poorer regions gain from federal taxes, but other regional characteristics such as manufacturing/non-manufacturing, or resource/non-resource can be important.

Suggested Citation

Jones, Rich and Whalley, John, Regional Effects of Taxes in Canada: an Applied General Equilibrium Approach (December 1986). NBER Working Paper No. w2107, Available at SSRN: https://ssrn.com/abstract=344869

Rich Jones

Independent

John Whalley (Contact Author)

University of Western Ontario - Department of Economics ( email )

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