Although recent research has led to a deeper understanding of the factors determining yields on long-term Canada bonds, there has been little corresponding work on provincial bonds. By using a carefully constructed new data set, we establish two important results. First, provincial fiscal...

This paper discusses the role of the dividend tax credit in determining the Canadian ownership pattern of Canadian industry. The analytic tool used is the capital-asset pricing model extended to include differential taxation of dividen ds and capital-gains income across different countries. The...