Taxes, Volatility, and Resources in Canadian Provinces
Tax policy often breeds controversy, especially when rate changes are motivated by volatile resource sectors. This article examines how provincial tax policies respond to changes in resource revenues. Specifically, it (a) estimates the tax–resource elasticity of Canadian provinces and (b) measures t...
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crunivtoronpr:10.3138/cpp.2015-068 2023-12-31T10:19:27+01:00 Taxes, Volatility, and Resources in Canadian Provinces Schaufele, Brandon 2016 http://dx.doi.org/10.3138/cpp.2015-068 https://utpjournals.press/doi/pdf/10.3138/cpp.2015-068 en eng University of Toronto Press Inc. (UTPress) Canadian Public Policy volume 42, issue 4, page 469-481 ISSN 0317-0861 1911-9917 Public Administration Sociology and Political Science journal-article 2016 crunivtoronpr https://doi.org/10.3138/cpp.2015-068 2023-12-05T17:31:21Z Tax policy often breeds controversy, especially when rate changes are motivated by volatile resource sectors. This article examines how provincial tax policies respond to changes in resource revenues. Specifically, it (a) estimates the tax–resource elasticity of Canadian provinces and (b) measures the resource sector's contribution to the volatility of provincial gross domestic product (GDP). Empirical results suggest that a $1,000 decrease in per capita resource revenue leads to a 150 basis point increase in a province's marginal personal income tax rate and a 3 percent increase in excise taxes on gasoline. A variance decomposition demonstrates that resource-induced volatility accounts for 76.2, 50.8, and 42.1 percent of the variance of the first-differenced GDP of, respectively, Newfoundland and Labrador, Alberta, and Saskatchewan. Article in Journal/Newspaper Newfoundland University of Toronto Press (U Toronto Press - via Crossref) Canadian Public Policy 42 4 469 481 |
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Open Polar |
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University of Toronto Press (U Toronto Press - via Crossref) |
op_collection_id |
crunivtoronpr |
language |
English |
topic |
Public Administration Sociology and Political Science |
spellingShingle |
Public Administration Sociology and Political Science Schaufele, Brandon Taxes, Volatility, and Resources in Canadian Provinces |
topic_facet |
Public Administration Sociology and Political Science |
description |
Tax policy often breeds controversy, especially when rate changes are motivated by volatile resource sectors. This article examines how provincial tax policies respond to changes in resource revenues. Specifically, it (a) estimates the tax–resource elasticity of Canadian provinces and (b) measures the resource sector's contribution to the volatility of provincial gross domestic product (GDP). Empirical results suggest that a $1,000 decrease in per capita resource revenue leads to a 150 basis point increase in a province's marginal personal income tax rate and a 3 percent increase in excise taxes on gasoline. A variance decomposition demonstrates that resource-induced volatility accounts for 76.2, 50.8, and 42.1 percent of the variance of the first-differenced GDP of, respectively, Newfoundland and Labrador, Alberta, and Saskatchewan. |
format |
Article in Journal/Newspaper |
author |
Schaufele, Brandon |
author_facet |
Schaufele, Brandon |
author_sort |
Schaufele, Brandon |
title |
Taxes, Volatility, and Resources in Canadian Provinces |
title_short |
Taxes, Volatility, and Resources in Canadian Provinces |
title_full |
Taxes, Volatility, and Resources in Canadian Provinces |
title_fullStr |
Taxes, Volatility, and Resources in Canadian Provinces |
title_full_unstemmed |
Taxes, Volatility, and Resources in Canadian Provinces |
title_sort |
taxes, volatility, and resources in canadian provinces |
publisher |
University of Toronto Press Inc. (UTPress) |
publishDate |
2016 |
url |
http://dx.doi.org/10.3138/cpp.2015-068 https://utpjournals.press/doi/pdf/10.3138/cpp.2015-068 |
genre |
Newfoundland |
genre_facet |
Newfoundland |
op_source |
Canadian Public Policy volume 42, issue 4, page 469-481 ISSN 0317-0861 1911-9917 |
op_doi |
https://doi.org/10.3138/cpp.2015-068 |
container_title |
Canadian Public Policy |
container_volume |
42 |
container_issue |
4 |
container_start_page |
469 |
op_container_end_page |
481 |
_version_ |
1786825682609766400 |