@article {2609,
	title = {FISCAL EQUALIZATION TRANSFERS AND PROVINCIAL INCOME DISPARITIESIN CANADA: AN ECONOMETRIC REASSESSMENT},
	journal = {International Handbook of Academic Research and Teaching},
	volume = {13},
	year = {2010},
	pages = {104-111},
	abstract = {This paper uses the panel data method and data from 1982 to 2006 to examine the effect of federal equalization transfers on\&nbsp;provincial income disparities in Canadian. Estimation problems of weak instruments and endogenous regressors are\&nbsp;addressed by the use of a system generalized method of moment estimator. The results from the empirical analysis indicate\&nbsp;that the current rate of convergence of personal income in Canada is 4.48 percent per year. This rate is considerably higher\&nbsp;than the range of 1.80 and 2.41 percent per year that previous studies using least square estimators have reported. The\&nbsp;findings from the policy analysis show that the fiscal transfers, which are part of the federal equalization program, have\&nbsp;reduced provincial income disparities by accelerating the speed of convergence for Canadian provinces.},
	author = {Alexander Bilson Darku}
}
