Incentives Matter: Equalization and Nova Scotia
The Liberal Party of Nova Scotia invited AIMS President Brian Lee Crowley to address its 2001 AGM on the question of whether or not the current federal equalisation programme is "fair" to Nova Scotia and what changes might be appropriate to improve the programme. In his talk, Crowley argued that the incentives implicit in equalisation had undermined provincial efforts to develop the local economy, frustrated efforts to make greater progress on achieving fiscal discipline, and damaged the link between taxing and spending which is at the heart of democratic accountability.