Financing Regional Public Transit in Ontario: The Case for Strengthening the Wicksellian Connection

27 Pages Posted: 13 Aug 2015

See all articles by Enid Slack

Enid Slack

University of Toronto Munk Centre for International Studies

Richard M. Bird

University of Toronto - Joseph L. Rotman School of Management; Georgia State University - Andrew Young School of Public Policy

Date Written: August 10, 2015

Abstract

Infrastructure finance has been much discussed recently. We first present a brief argument about the importance of establishing what we call the Wicksellian Connection – a clear and meaningful linkage between expenditures and revenues – essentially because unless it is decided who is going to pay for infrastructure and how, we cannot sensibly decide what should be done. In the next section we then review the major proposals that have been put forward on financing rapid transit in the Toronto region, and find that little attention has been paid to establishing a sufficiently clear linkage between what is to be done and how it is to be paid to ensure that what is finally done is financed in a way that will meet even the barest tests of efficiency, equity, and accountability. Finally, a brief conclusion considers some ways in which this circle may be closed and at least a partial Wicksellian Connection established.

Keywords: infrastructure finance, urban transit, linking expenditures and revenues

JEL Classification: H76, R48

Suggested Citation

Slack, Enid and Bird, Richard Miller, Financing Regional Public Transit in Ontario: The Case for Strengthening the Wicksellian Connection (August 10, 2015). Rotman School of Management Working Paper No. 2642438. Available at SSRN: https://ssrn.com/abstract=2642438 or http://dx.doi.org/10.2139/ssrn.2642438

Enid Slack

University of Toronto Munk Centre for International Studies ( email )

Toronto, Ontario
Canada

Richard Miller Bird (Contact Author)

University of Toronto - Joseph L. Rotman School of Management ( email )

105 St. George Street
Toronto, Ontario M5S 3E6 M5S1S4
Canada
905-274-8841 (Phone)

Georgia State University - Andrew Young School of Public Policy

International Studies Program
Atlanta, GA 30303-3083
United States

HOME PAGE: http://www.aysps.gsu.edu

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