Centralization and the size of government in Canada

The determinants of the growth of government in Canada over the period 1926–90 are examined. Of particular interest is whether changes in the degree of centralization have affected the public sector's share of GDP. Unlike other studies using time-series data, the effect of decentralization toward the provincial/state and toward the local levels of government are measured separately. Empirical estimates provide strong support for the conclusion that citizen mobility acts as an important constraint on the growth of government.