EFFECT OF METROPOLITAN GOVERNMENT ON RESOURCE ALLOCATION: THE CASE OF EDUCATION IN TORONTO

Abstract

This paper examines the effect on education expenditures of federating thirteen formerly autonomous municipalities under the Municipality of Metropolitan Toronto. Prior to federation no significant difference in expenditures existed between the Toronto area municipalities and a set of control municipalities while subsequent to federation expenditures for the Toronto municipalities were significantly higher. Part of this differential is explained by particular changes associated with federation.