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This book examines the influence of transport costs on regional economic development in northern Ontario. It begins with an overview of the Canadian freight rate structure, with emphasis on railway rates, and a brief look at the history of federal rate policy. A theoretical model of rate determination is then constructed to permit measurement of the impact on producers and consumers of alternative rate-setting policies. Using econometric techniques and 1975 data, rate changes are related to the inputs and outputs of northern Ontario’s economy, and the effect on the region of subsidies and regulations is discussed. Freight rates on inbound shipments are found to be much higher than on goods exported from the area. A central discovery is that regulations limiting competition in the Ontario trucking industry have raised highway freight rates significantly beyond the national average. In this situation transport subsidies are unlikely to affect rates, Professor Bonsor argues; the most effective way to lower unduly high freight rates in northern Ontario, he suggests, is to eliminate entry restrictions and promote vigorous competition in the highway trucking industry.
Distribution analysis has advanced remarkably in recent years, and this is a valuable application of its principles to a Canadian context. The book provides an extensive survey of recent literature and a new source of income and wealth distribution data for Ontario, drawn from newly available microdata sets. It also presents an evaluation of the data as a basis for measuring inequality in the distribution of economic and well-being. The empirical results illustrate how incomes vary significantly with age according to labour market attachment and experience, educational attainment and occupation, transfer receipts, and investment benefits. Similarly, strong age effects on net worth account reflect life-cycle patterns in asset holdings and debts typically associated with family investment in housing and financial adjustments for retirement. Differences in family size and composition have a substantial effect on the structure of family economic well-being. The inequality effects of adjusting for accrued capital gains and net worth holdings can also be quite significant. It is found that the distributional effects of CPP net benefits are considerable, although they are not as equalizing as one may have expected because of marked cohort effects. The detailed findings suggest that the life-cycle framework is a very useful one for evaluating the distributional effects of certain government programs, particularly intertemporal ones, and they underline the need for a range of different types of policies to address low income problems. The study urges greater recognition of the inequality of treatment and opportunity among different groups of the population. It also points out that conventional income distribution figures are only very imperfect estimates of the state of inequality in the underlying distribution of economic well-being.
This is an economic analysis of pricing and subsidy policies for urban roads and urban public transit in Ontario. Professor Frankena demonstrates the benefits of evaluating the economic merits of policy alternatives, and attempts to determine whether existing policies waste resources or lead to undesirable income transfers among different groups in the population. He concludes that resources are being wasted because the use of urban roads is substantially underpriced during periods of peak demand. He also finds that while there are sound economic justifications for substantial public transit subsidies, the allocation of subsidies by the Ontario government on the basis of capital expenditures can be expected to waste resources, as can the maximization of ridership which is likely to lead to detrimental fare and service policies. In conclusion, Frankena suggests improvements in the systems for charging people for the use of roads and public transit and in the ways that governments provide subsidies.
This detailed and informative study makes a timely contribution to a subject that has been the focus of much public discussion and debate in Ontario and elsewhere, namely the size and growth of the public sector. Working with the Public Accounts and other sources, Professor Foot offers both an historical account of, and an explanation for, the growth of provincial revenues and expenditures since the early 1950s. By concentrating on an analysis of the development of a single government over time, rather than adopting the traditional cross-section approach of analysing a number of junior-level governments. The study's conclusions are both informative and provocative. On the revenue side, a rate-base approach which separates discretionary from automatic changes in revenue determinants is shown to provide sufficient flexibility to accommodate the analysis and explanation of a wide range of specific revenues. On the expenditure side, the provincial government is found to adjust reasonably slowly to new levels of desired expenditures which appear to be determined primarily by demand variables. Of particular interest are findings which suggest that urbanization and elections have had little effect on expenditures and that available federal money has tended to be a substitute for provincial funds. In addition, the author notes that provincial expenditure patterns are consistent with either a revenue-led interpretation, where the recent availability of pension funds has stimulated expenditures, or a leading-sector interpretation, which implies a longer-run coordinated view of provincial public development. This study should stimulate a more informed discussion of the determinants and effects of provincial public finance in Ontario. It will appeal not only to those interested in the behaviour of junior-level governments but also to anyone interested in the size and growth of the public sector, in Ontario or elsewhere.
Planning and evaluating any health care program is a formidable task: how do you measure the health of a population? This fundamental question has been approached from various perspectives in medical, administrative, and economic studies. This book provides a guide to health measurement literature and relates it to Ontario's current and prospective policy choices and to the federal context of health indicators and indices to existing statistics in Ontario in a county-by-county survey of the province's health care. He also outlines the kinds of information essential to health assessment but not currently available. The book as a whole emphasizes the importance of health care measurement in the humane and efficient planning of health services. It will be of interest to all concerned with the practice of medicine in the 1980s and the planning of health services at the federal and provincial levels, as well as to those with a special interest in health from the economic, political, and sociological perspectives.
Municipal licensing serves a variety of regulatory purposes such as consumer protection and public health and safety. The municipal licensing power is delegated from the provincial government, up to the present, municipalities have been restricted to enumerated, specific powers, and the result has been the growth of a disorganized and unwieldy accumulation of bylaws, many of which conflict or are obsolete. The development of a two-tier system of municipal government, exemplified by Metropolitan Toronto, adds to the complexity of the issues. Basing their analysis upon municipal experience in Ontario, the authors envisage a reorganized system in which provincial and municipal powers will be exercised more rationally to deal with problems at the level at which they tend to occur. Municipal licensing in practice is the topic of a study of the cartage and taxicab industries in a number of Canadian and American cities. Comparisons of industry structure in differing regulatory environments lead to the conclusion that entry controls are not justified by their results.
This book describes and analyses the provincial government's role in municipal and regional planning. The conversion of farmland to urban and other uses is discussed, as are the issues raised by the reports of the Ontario Planning Act Review Committee and the Federal/Provincial Task Force on the Supply and Price of Serviced Residential Land and the province's Green Paper on Planning for Agriculture. The authors criticize the government's failure to conduct cost-benefit studies before setting up planning programs and show that there is little factual basis for recent alarm over the disappearance of farmland. Data gathered here for the first time show that the conversion of agricultural land to built-up urban use and non-farm rural residential use in Ontario has been taking place quite slowly in view of the rate of productivity increase in agriculture, the stock of agricultural land, and the decline in the acreage of census farms. Economists will find in this book a useful survey of recent trends and policies. Planners, policy-makers, and students will welcome this detailed case study of how economic analysis ought to be used in formulating land use policies.
A framework is concisely presented for the economic analysis of pollution problems and for evaluating proposed solutions. The substantial recent literature on environmental economics is reviewed and related to Ontario environmental policy. Topics include the theory of externalities as an explanation of environmental problems, policy objectives, costs of information and monitoring, and the impact of these costs on control policy selection. Three case studies of specific pollution problems – sulphur dioxide from a smelter, lead from downtown factories, and urban automobile emissions – are given, and possible solutions explored. The authors' methodology is applicable not only to air and water pollution but also to noise, aesthetic degradation, and solid waste. This study will be welcomed by specialists, civil servants, and students trying to understand the economic aspects of environmental maintenance.
This crisp, provocative, lively, sometimes opinionated analysis is an important contribution to the scanty Canadian literature on the politics of the budgetary process. It is an important theoretical contribution to the study of political decision-making made by an economist. Speaking from personal experiences of the administrative struggles that lie behind evolving federal expenditure priorities, Professor Hartle offers an original, and at times devastating, review of the theories of public decision-making advanced by such analysts as Downs, Breton, Niskanen, and Wildavsky. He argues that their inadequacies can be overcome if politics, like the economy, is recognized as a process in which individuals and groups seek to maximize their satisfactions. He shoes how the federal budget is the outcome of a series of utility-maximizing games between politicians, bureaucrats, interest-group leaders, journalists, and voters. His approach is clearly applicable to decision-making in all organizations, both public and private. This study will appeal especially to economists and political scientists as an example of how the insights of their two disciplines can be combined. As a stimulating investigation of how government really works, it will greatly interest not only specialists in public administration but also anyone concerned with the larger issues of how decisions are reached under the conditions imposed by large modern organizations.
Cumulates monthly issues and includes additional material.