 |
Fiscal
Federalism policy in OECD member countries
Jon Blondal
The present article is a reproduction of the paper presented by Jon Blondal at the Conferencia Internacional em Desentralizaço, Relaçoes Fiscais Intergovernamentais e Governança Macroeconômica that took place in June, 1997 in the city of Brasilia, Brasil. |
|
|
4. Appendixes A and B
|
APPENDIX A
Sub-national government share
of total government expenditure
(Data refers to 1994) |
| Australia |
45.4 % |
| Austria |
25.2 % |
| Belgium |
11.3 % |
| Canada |
55.3 % |
| Denmark |
51.7 % |
| Finland |
28.2 % |
| France |
14.2 % |
| Germany |
32.0 % |
| Greece |
7.9 % |
| Iceland |
19.4 % |
| Ireland |
26.4 % |
| Italy |
23.1 % |
| Japan |
36.6 % |
| Netherlands |
25.7 % |
| Portugal |
8.3 % |
| Spain |
20.4 % |
| Sweden |
34.5 % |
| Switzerland |
43.6 % |
| United Kingdom |
25.3 % |
| United States |
38.7 % |
| Source:
OCDE |
|
APPENDIX B
Provincial interest rate spreads, debt and credit rating
|
|
|
Notes: ALB = Alberta; BC = British Columbia; MAN = Manitoba; NB = New Brunswick; 0NT = 0ntario; SASK = Saskatchewan; NS = Nova Scotia; PEI = Prince Edward Island; QUE = Quebec; NFLD = Newfoundland. The interest rate spread (variable SPREAD) measures the difference, in basis points, between interest rates on provincial bonds and federal bonds in April 1995. The net debt-to-GDP ratio (variable DEBT) are values for the financial year 1994/95. For the purpose of quantifying any relationship the variable CREDIT has been created and given the value of 1 for the highest provincial credit rating (Aa1), with successively lower credit ratings incremented by one. Estimated lines of best fit (with t-ratios in brackets) for all the provinces, excluding Quebec, are given by:
(1) SPREAD = 2.2 + 1.32 DEBT, R2 = 0.792; (-0.2) (5.2)
(2) SPREAD = 5.4 + 7.95 CREDIT, R2 = 0.766. (0.6) (4.8)
Source: Department of Finance and OECD Secretariat calculations. |
|
|
