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Taxation --- Impôt --- Mathematical models. --- Modèles mathématiques --- Canada --- Canada --- Commerce --- Mathematical models. --- Commerce --- Modèles mathématiques
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In a geographically dispersed country such as Canada, in which regions are distinguished resource bases, transport policies are a critical factor in economic development. In this study James Melvin considers the role of tariffs as they affect transportation costs within Canada. Melvin proposes application of the two-country model of neoclassical trade to the interregional economic structure of Canada, taking into account the costs of internal transport. He applies this basic theoretical approach to a number of different problems; taxation, capital flows between regions, short-run factor immobility, and increasing returns to scale. Melvin's findings indicate that tariffs induce resource waste by encouraging excessive internal transportation of goods between regions. He concludes that with an assessment of policy implications for Ontario arising from his study.
Tariff --- Transportation and state --- Canada --- Economic conditions --- Regional disparities.
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International economic relations --- International trade --- Commerce international --- Canada --- Commerce --- 339.5 --- External trade --- Foreign commerce --- Foreign trade --- Global commerce --- Global trade --- Trade, International --- World trade --- Non-traded goods --- Buitenlandse handel. Internationale handel. Ruilvoet --- Commerce. --- 339.5 Buitenlandse handel. Internationale handel. Ruilvoet
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Econometrics --- Equilibrium (Economics) --- Free trade --- International trade --- Welfare economics --- Econometric models --- Econometric models --- Econometric models --- Econometric models
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This study investigates how an increase in the price of petroleum and natural gas would alter commodity prices in Ontario, and then estimates the effects on production and employment. A 100 per cent increase in energy prices is assumed. Using the Ontario input-output table it is found that commodity price increases would be relatively small, on average 2.7 per cent over-all and less than 1.6 per cent in basic manufacturing. However, using Cobb-Douglas utility functions it is also calculated that the Ontario labour force would suffer an employment reduction of 2 to 4 per cent. Economic policy alternatives open to Ontario are then considered. Subsidies to offset commodity price increases would be very expensive and difficult to administer. Retaliatory measures, such as a change in the Ontario Corporate Income Tax, would be inefficient. It is concluded that from Ontario's point of view, the best economic policy would be to attempt to ensure that petroleum and natural gas prices remain uniform throughout Canada.
Petroleum industry and trade --- Petroleum products --- Interstate commerce --- Prices --- Ontario. --- Canada.
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