Some Thoughts on the Government Sector: The Case of Canada

Panos Afxentiou ()
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Panos Afxentiou: University of Calgary, Department of Economics, Postal: 2500 University Drive NW Calgary Alberta, Canada T2N 1N4, http://econ.ucalgary.ca/

Economia Internazionale / International Economics, 1995, vol. 48, issue 2, 159-177

Abstract: One of the many functions of government is the enhancement of cohesion of the various diverse sections of society. While much integrative power is found in exhaustive expenditures, governments increasingly utilize transfers for this purpose. A statistical investigation of the Canadian public sector in real terms from 1926 to 1988 has shown practically no causality between GDP growth and the major categories of government spending, except for the case of the relatively small class of transfers to business. This result suggests that the Canadian government expenditures are determined by forces other than GDP growth or by forces which are only indirectly or remotely related to GDP growth.

Date: 1995
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