Hostname: page-component-78c5997874-dh8gc Total loading time: 0 Render date: 2024-11-19T19:33:39.389Z Has data issue: false hasContentIssue false

Political Centralization, Federalism, and Urban Development: Evidence from US and Canadian Capital Cities

Published online by Cambridge University Press:  25 January 2016

Abstract

A growing empirical literature links political centralization with urban development. In this paper we present evidence showing how different patterns of political centralization in the United States and Canada affected urban agglomeration during the twentieth century, with a specific focus on the impact on the population of capital cities. Using data on Canadian and US cities and metropolitan areas, we find that the national capital effect on population grew over time in both countries but more so in the United States whereas the subnational (i.e., provincial or state) capital effect rose much more significantly in Canada than in the United States, controlling for other factors like geography and climate. We argue that these patterns in the national and subnational capital city effects reflect different trends in federalism in the two countries. In the United States, the Jeffersonian-Jacksonian tradition of states’ rights and localism was transformed into a more nationally centralized form of federalism during the Progressive Era, but states and localities continued to retain significant autonomy. In Canada, federalism came to favor provincial rights but not localism. We believe that that these diverging trends were driven by institutional differences that gave the various levels of governments in Canada and the United States different access to revenue sources.

Type
Articles
Copyright
Copyright © Social Science History Association, 2016 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Abel, Albert S. (1954) “The public corporation in the United States,” in Friedmann, Wolfgang (ed.) The Public Corporation: A Comparative Symposium. Toronto: Carswell Company: 338–73.Google Scholar
Acemoglu, Daron, Johnson, Simon, and Robinson, James A. (2001) “The colonial origins of comparative development: An empirical investigation.” American Economic Review 91 (5): 13691401.Google Scholar
Ades, Alberto F., and Glaeser, Edward L. (1995) “Trade and circuses: Explaining urban giants.” Quarterly Journal of Economics 110 (1): 195227.Google Scholar
Armstrong, Christopher (1972) “The Mowat heritage in federal-provincial relations,” in Swainson, D. (ed.) Oliver Mowat's Ontario. Toronto: Macmillan of Canada: 93118.Google Scholar
Armstrong, Christopher (1981) The Politics of Federalism: Ontario's Relations with the Federal Government, 1867–1942. Toronto: University of Toronto Press.Google Scholar
Aronson, J. Richard, and Hilley, John L. (1986) Financing State and Local Governments, 4rth ed. Washington, DC: Brookings Institution.Google Scholar
Banks, Margaret A. (1991) Understanding Canada's Constitution. London, ON: University of Western Ontario Press.Google Scholar
Bellan, Ruben C. (2003) Canada's Cities: A History. Winnipeg: Whitfield Press.Google Scholar
Berkhofer, Robert F., Jr. (1972) “Jefferson, the Ordinance of 1784, and the origins of the American territorial system.” William and Mary Quarterly 29 (2): 231–62.Google Scholar
Bird, Richard M., and Chen, D. (1998) “Federal finance and fiscal federalism: The two worlds of Canadian public finance.” Canadian Public Administration 41 (1): 5174.Google Scholar
Bird, Richard M., and Tassonyi, Almos T. (2001) “Constraints on provincial and municipal borrowing in Canada: Markets, rules, and norms.” Canadian Public Administration 44 (1): 84109.CrossRefGoogle Scholar
Bird, Richard M., and Tassonyi, Almos T. (2003) “Constraining subnational fiscal behavior in Canada: Different approaches, similar results?,” in Rodden, Jonathan, Eskeland, Gunnar S., and Litvack, Jennie (eds.) Fiscal Decentralization and the Hard Budget Constraint. Cambridge, MA: MIT Press: 85132.Google Scholar
Booth, Paul, and Edwards, Heather (2003) Eric Hanson's Financial History of Alberta. Calgary: University of Calgary Press.Google Scholar
Bryce, Robert B. (1986) Maturing in Hard Times: Canada's Department of Finance through the Great Depression. Kingston, ON: McGill-Queen's University Press.CrossRefGoogle Scholar
Buck, A. E. (1949) Financing Canadian Government. Chicago: Lakeside Press.Google Scholar
Buckley, F. H. (2014) The Once and Future King: The Rise of Crown Government in America. New York: Encounter Books.Google Scholar
Burns, Nancy, and Gamm, Gerald (1997) “Creatures of the state: State politics and local government, 1871–1921.” Urban Affairs Review 33 (1): 5996.Google Scholar
Campbell, Ballard C. (1980) Representative Democracy: Public Policy and Midwestern Legislatures in the Late Nineteenth Century. Cambridge, MA: Harvard University Press.CrossRefGoogle Scholar
Coté, André, and Fenn, Michael (2014) “Approaching an inflection point in Ontario's provincial-municipal relations.” IMFG Perspectives No. 6. Munk School of Global Affairs. University of Toronto.Google Scholar
Courchene, Thomas (2007) “A short history of equalization payments.” Policy Options 28 (3): 2229.Google Scholar
Crawford, Kenneth Grant (1954) Canadian Municipal Government. Toronto: University of Toronto Press.Google Scholar
Creighton, Donald (1937) The Commercial Empire of the St. Lawrence, 1760–1850. Toronto: Ryerson.Google Scholar
Drummond, Ian (1987) Progress without Planning: The Economic History of Ontario from Confederation to the Second World War. Toronto: University of Toronto Press.Google Scholar
Dupré, Ruth (1988) “Un siècle de finances publics Québecoises: 1876–1969.” L’Actualité Économique: Revue d’analyse économique 64 (4): 560–83.Google Scholar
Dupré, Ruth (1993a) “The evolution of Quebec government spending, 1867–1969,” in Watkins, M. H. and Grant, H. M. (eds.) Canadian Economic History: Classic and Contemporary Approaches. Ottawa: Carleton University Press: 267–74.Google Scholar
Dupré, Ruth (1993b) “Was the Quebec government spending so little? A comparison with Ontario, 1867–1969.” Journal of Canadian Studies 28 (3): 4561.CrossRefGoogle Scholar
Egnal, Marc (1996) Divergent Paths: How Culture and Institutions Have Shaped North American Growth. New York: Oxford University Press.Google Scholar
Emery, J. C. Herbert, and Kneebone, Ronald D. (2008) “Socialists, populists, resources, and the divergent development of Alberta and Saskatchewan.” Canadian Public Policy 34 (4): 419–40.Google Scholar
Emery, J. C. Herbert, and Paarsch, Harry (2014) “Mortgaging the future or seizing the dangerous moment? The McBride Special Timber Licenses in British Columbia, 1905–1907.” Paper presented at the Canadian Network for Economic History annual conference, Peterborough, October 25.Google Scholar
Engerman, Stanley L., and Sokoloff, Kenneth L. (1997) “Factor endowments, institutions, and differential paths of growth among new world economies: A view from economic historians of the United States,” in Haber, Stephen (ed.) How Latin America Fell Behind: Essays on the Economic Histories of Brazil and Mexico 1800–1914. Stanford, CA: Stanford University Press: 260304.Google Scholar
Engerman, Stanley L., and Sokoloff, Kenneth L. (2002) “Factor endowments, inequality, and paths of development among new world economies.” Economia 3 (1): 41102.Google Scholar
Evans, A. Margaret (1992) Sir Oliver Mowat. Toronto: University of Toronto Press.CrossRefGoogle Scholar
Fisher, Glenn W. (1996) The Worst Tax: A History of Property Tax in America. Lawrence: University Press of Kansas.Google Scholar
Galiani, Sebastian, and Kim, Sukkoo (2011) “Political centralization and urban primacy: Evidence from national and provincial capitals in the Americas,” in Costa, Dora L. and Lamoreaux, Naomi (eds.) Understanding Long-Run Economic Growth: Geography, Institutions, and the Knowledge Economy. Chicago: University of Chicago Press: 121–53.Google Scholar
Gibbins, Roger (1982) Regionalism: Territorial Politics in Canada and the United States. Toronto: Butterworths.Google Scholar
Giles, David E. (2011) “Interpreting dummy variables in semi-logarithmic regression models: Exact distributional results.” University of Victoria Department of Economics Working Paper EWP 1101.Google Scholar
Goldberg, Michael A., and Mercer, John (1986) The Myth of the North American City: Continentalism Challenged. Vancouver: University of British Columbia Press.Google Scholar
Hamm, Richard F. (1995) Shaping the Eighteenth Amendment: Temperance Reform, Legal Culture, and the Polity, 1880–1920. Chapel Hill: University of North Carolina Press.Google Scholar
Hanson, A. H. (1961) Parliament and Public Ownership. London: Cassell and Company.Google Scholar
Hartog, Hendrik (1983) Public Property and Private Power: The Corporation of the City of New York in American Law, 1730–1870. Ithaca, NY: Cornell University Press.Google Scholar
Hellerstein, Walter (1983) “Legal constraints on state taxation of natural resources,” in McLure, C. Jr. and Mieszkowski, P. (eds.) Fiscal Federalism and the Taxation of Natural Resources. Lexington, MA: Lexington Books: 135–66.Google Scholar
Henderson, J. Vernon, and Wang, Hyong Gun (2007) “Urbanization and city growth: The role of institutions.” Regional Science and Urban Economics 37 (3): 283313.Google Scholar
Hidy, Ralph W., Hill, Frank E., and Nevins, Allen (1963) Timber and Men: The Weyerhaeuser Story. New York: Macmillan Company.Google Scholar
Higgens-Evenson, R. Rudy (2003) The Price of Progress: Public Services, Taxation, and the American Corporate State, 1877–1929. Baltimore: Johns Hopkins University Press.Google Scholar
Hodgetts, J. E. (1954) “The public corporation in Canada,” in Friedmann, Wolfgang (ed.) The Public Corporation: A Comparative Symposium. Toronto: Carswell Company: 5192.Google Scholar
Hodgetts, J. E., and Dwivedi, O. P. (1974) Provincial Governments as Employers. Montreal: McGill-Queen's University Press.Google Scholar
Hodgins, Bruce W. (1972) “Disagreement at the commencement: Divergent Ontarian views of federalism, 1867–1871,” in Swainson, D. (ed.) Oliver Mowat's Ontario. Toronto: Macmillan of Canada: 5268.Google Scholar
Hurst, James W. (1964) Law and Economic Growth: The Legal History of the Lumber Industry in Wisconsin 1836–1915. Cambridge, MA: Belknap Press.Google Scholar
Innis, Harold A. (1956) The Fur Trade in Canada: An Introduction to Canadian Economic History. Rev. ed. Toronto: University of Toronto Press.Google Scholar
Kim, Sukkoo (2009) “Institutions and U.S. regional development: A study of Massachusetts and Virginia.” Journal of Institutional Economics 5 (1): 181205.Google Scholar
Kim, Sukkoo, and Law, Marc T. (2012) “History, institutions, and cities: A view from the Americas.” Journal of Regional Science 52 (1): 1039.Google Scholar
La Forest, Gerard V. (1969) Natural Resources and Public Property under the Canadian Constitution. Toronto: University of Toronto Press.Google Scholar
Levi, Margaret (1988) Of Rule and Revenue. Berkeley: University of California Press.Google Scholar
Mackintosh, W. A. (1923) “Economic factors in Canadian history.” Canadian Historical Review 4 (1): 1225.Google Scholar
Maier, Pauline (1993) “The revolutionary origins of the American corporation.” William and Mary Quarterly 50 (1): 5184.Google Scholar
McGoldrick, Joseph D. (1967) Law and Practice of Municipal Home Rule 1916–1930. New York: AMS Press.Google Scholar
Moore, Christopher (1997) 1867: How the Fathers Made a Deal. Toronto: McClelland and Stewart.Google Scholar
Nader, George A. (1976) Cities of Canada. Toronto: Macmillan.Google Scholar
Nelles, H. V. (1974) The Politics of Development: Forests, Mines and Hydro-Electric Power in Ontario, 1849–1941. Montreal: Archon Books.Google Scholar
Nickson, R. Andrew (1995) Local Government in Latin America. Boulder, CO: Lynne Rienner Publishers.Google Scholar
Noel, S. J. R. (1990) Patrons, Clients, Brokers: Ontario Society and Politics, 1791–1896. Toronto: University of Toronto Press.Google Scholar
North, Douglass C. (1990) Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press.Google Scholar
O’Brien, Allan (1975) “Father knows best: A look at the provincial-municipal relationship in Ontario,” in McDonald, D. C. (ed.) Government and Politics of Ontario. Toronto: McMillan: 154–71.Google Scholar
Perry, J. Harvey (1955) Taxes, Tariffs and Subsidies: A History of Canadian Fiscal Development. Toronto: University of Toronto Press.Google Scholar
Riker, William H. (1964) Federalism. Boston: Little, Brown and Company.Google Scholar
Roberts, Warren A. (1944) State Taxation of Metallic Deposits. Cambridge, MA: Harvard University Press.Google Scholar
Sancton, Andrew, and Young, Robert (2009) Foundations of Governance: Municipal Government in Canada's Provinces. Toronto: University of Toronto Press.Google Scholar
Saywell, John T. (2002) The Lawmakers: Judicial Power and the Shaping of Canadian Federalism. Toronto: University of Toronto Press.Google Scholar
Skelton, O. D. (1908) “The taxation of mineral resources in Canada.” Canadian Mining Journal 29: 551–55.Google Scholar
Slack, Enid, and Bird, Richard M. (2007) “Cities in Canadian federalism.” Policy Options 29 (1): 7277.Google Scholar
Sokoloff, Kenneth L., and Zolt, Eric. M. (2007) “Inequality and the evolution of institutions of taxation: Evidence from the economic history of the Americas,” in Edwards, Sebastian, Esquavel, Geraldo, and Marquez, Graciela (eds.) The Decline of Latin American Economies: Growth, Institutions, and Crises. Chicago: University of Chicago Press: 83136.Google Scholar
Stark, Kirk J. (2010) “Rich states, poor states: Assessing the design and effect of a US equalization regime.” Tax Law Review 63 (4): 9571008.Google Scholar
Statistics Canada (various years). Census of Population. Ottawa: Government of Canada.Google Scholar
Tassonyi, Almos T. (2009) “Ottawa, Canada,” in Slack, Enid and Chattopadyay, Rupak (eds.) Finance and Governance of Capital Cities in Federal Systems. Montreal: McGill-Queen's University Press: 5578.Google Scholar
Tassonyi, Almos T. (2011) “Essays on municipal finance in Ontario from a historical perspective.” PhD diss., University of Calgary.Google Scholar
Teaford, Jon C. (1975) The Municipal Revolution in America: Origins of Modern Urban Government 1650–1825. Chicago: University of Chicago Press.Google Scholar
Thompson, Scott, and Genosko, Gary (2009) Punched Drunk: Alcohol, Surveillance, and the LCBO, 1927–75. Halifax: Fernwood Publishing.Google Scholar
Tindal, C. Richard, and Tindal, Susan Nobes (2000) Local Government in Canada, 5th ed. Scarborough: Nelson.Google Scholar
Tremblay, Jean-François (2007) “Fiscal federalism and public service provision in Canada.” Public Policy Review 3 (1): 5190.Google Scholar
Urquhart, M. C. (1993) Gross National Product, Canada, 1870–1926: Derivation of the Estimates. Kingston: McGill-Queen's University Press.Google Scholar
U.S. Bureau of the Census (various years) Census of Population. Washington, DC: Government Printing Office.Google Scholar
U.S. Bureau of the Census (various years) County and City Data Book. Washington, DC: Government Printing Office.Google Scholar
U.S. Bureau of the Census (various years) Financial Statistics of Cities. Washington, DC: Government Printing Office.Google Scholar
U.S. Bureau of the Census (various years) Social Statistics of Cities. Washington, DC: Government Printing Office.Google Scholar
U.S. Bureau of the Census (various years) State and Metropolitan Area Data Book. Washington, DC: Government Printing Office.Google Scholar
Wallis, John J. (2000) “American government finance in the long run: 1790 to 1990.” Journal of Economic Perspectives 14 (1): 6182.Google Scholar
Wallis, John J. (2005) “Constitutions, corporations, and corruption: American states and constitutional change, 1842–52.” Journal of Economic History 65 (1): 211–56.Google Scholar
Zolt, Eric M. (2009) “Inequality, collective action, and taxing and spending patterns of state and local governments.” Tax Law Review 62 (4): 445504.Google Scholar