C.D. Howe Institute

How to Lower the High Cost of Flying

TORONTO, - Canada's airports and airlines are hobbled by federal government policies that send travelers' costs soaring, according to a report released today by the C.D. Howe Institute. In "Full Throttle: Reforming Canada's Aviation Policy," author Benjamin Dachis finds high fares are symptomatic of wider problems in the aviation industry that Ottawa should address with sweeping policy reforms.

Report Shows Cities with Best and Worst Fiscal Accountability

TORONTO, - Opaque budgeting methods and financial reports in Canada's major cities baffle councilors and taxpayers, according to a report released today by the C.D. Howe Institute.

Service Exports Help Drive Growth in Well-paying Jobs

TORONTO, - While manufacturing has been struggling to recoup job losses, Canada's tradable services sectors have been expanding, providing an increased number of well-paying jobs in Canada in the midst of tough economic times, according to a report released today by the C.D. Howe Institute. In "Tradable Services: Canada's Overlooked Success Story," author Daniel Schwanen finds the relative strength of the Canadian economy has shifted towards the services side, and policy should now seek to exploit that strength. "Tradable services are an area of strength for the Canadian economy, and certainly one of relative success when it comes to exports and the creation of 'good' jobs," commented Schwanen.

Investors from US, Mexico to Benefit from Canada-EU Trade Deal

TORONTO, - Investors from US and Mexico and other third-party countries will benefit from the Canada-EU trade deal when it comes to investing in Canada, according to a report released today by the C.D. Howe Institute. In "Who Else Benefits from CETA? Some Implications of Most-Favoured Nation Treatment," respected trade lawyer Lawrence L. Herman concludes that investors from countries that have preferential trade agreements with Canada will be entitled to the same preferential benefits as EU investors under the Canada-EU trade deal.

Low Investment Returns Expected to Squeeze Retirees, Pension Plans

TORONTO, - Low investment returns loom in the decades ahead, spelling bad news for retirement savers and pension plan managers, according to a report released today by the C.D. Howe Institute. In "Long-Term Returns: a Reality Check for Pension Funds and Retirement Savers," authors Richard Guay and Laurence Allaire challenge widely used "optimistic" assumptions for investment returns based on historic experience, with more realistic ones using current Canadian data.

Making Canada’s Foreign Aid Work: Lessons from the Bangladesh Tragedy

Toronto, ON – Canada’s foreign aid could be more effective, were strategies in place that addressed the problem of weak host-country governance, which currently renders aid inefficient or even counter-productive, according to a report released today by the C.D. Howe Institute. In “Diplomacy, Trade and Aid: Searching for “Synergies,” author John Richards proposes a mix of corporate social responsibility for Canadian firms engaged in trade with low-income countries, diplomatic involvement in aid projects, and aid projects designed to address problems of “weak” host-country governance.

Time to Focus on Patient Use of "Outside" Doctors for Primary Care - C.D. Howe Institute

TORONTO, - Ontario healthcare reforms have made headway in improving access to primary care by implementing the "capitation" model where doctors are paid mainly for a roster of patients rather than fee-for-service - but too many of patients are still using "outside" doctors, according to a report from the C.D. Howe Institute. In "Accountability and Access to Medical Care: Lessons from the Use of Capitation Payments in Ontario," authors Åke Blomqvist, Boris Kralj and Jasmin Kantarevic suggest an area for further reform would be to encourage patients to stick to their regular doctor.

Who Benefits Most from Billions in Postsecondary Tax Credits? Not Low-Income Families

TORONTO, - Postsecondary tax credits cost the federal and provincial governments billions of dollars each year, but are not distributed equitably and may have no proven effect in boosting enrolment, according to a report released today by the C.D. Howe Institute. In "What You Don't Know Can't Help You: Lessons of Behavioural Economics for Tax-Based Student Aid," author Christine Neill finds flaws in the design of postsecondary tax credits and recommends they be better-targeted at low-income families that need them most.

Canada Lagging Peers in 2013 Business Investment Growth: C.D. Howe Institute

TORONTO, - After several years of relatively robust performance, Canada is lagging its peers in business investment growth, according to a new report by the C.D. Howe institute. In "Equipping Canadian Workers: Business Investment Loses a Step against Competitors Abroad," authors Benjamin Dachis and William B.P. Robson find 2013 growth in new private-sector plant and equipment spending per worker in Canada seems likely to lag investment abroad, with strength in the more natural-resource-oriented provinces offset by weakness in Central Canada and the Maritimes.

Business Property Taxes Bite into New Investment

TORONTO, - Business property taxes are a major part of the tax burden on new business investment that can tip the balance in the competition for capital among Canadian cities and provinces, according to a report released today by the C.D. Howe Institute. In "What Gets Measured Gets Managed: The Economic Burden of Business Property Taxes," authors Adam Found, Benjamin Dachis, and Peter Tomlinson conduct groundbreaking research into the impact of business property taxes (BPTs) in localities across Canada and show where they are highest and lowest.

Weighing the Impact of High Frequency Trading on Capital Markets

TORONTO, - High frequency trading is not the bane of capital markets that critics make it out to be, according to a report released today by the C.D. Howe Institute. In "High Frequency Traders: Angels or Devils?" author Jeffrey G. MacIntosh weighs the effects of lightening fast, automated trading on capital markets and finds that, overall, it is having beneficial effects.

How to Escape Ontario’s Power Sector Morass

TORONTO, - Ontario's power sector needs an overhaul to address a long list of inefficiencies, and rising consumer prices, according to a new report from the C.D. Howe Institute. In "A New Blueprint for Ontario's Electricity Market," author A.J. Goulding presents a blueprint for an electricity market that would be responsive to price signals, reform the role of the Ontario Power Authority (OPA), and would operate free from ministerial meddling.

Include Taxpayer Risk in Costs of Public Sector Projects

TORONTO, - The costs of public sector investments in infrastructure projects are underestimated and should include the risks to taxpayers who backstop them, according to a report released today by the C.D. Howe Institute. In " The Valuation of Public Projects: Risks, Cost of Financing and Cost of Capital," authors Marcel Boyer, Eric Gravel and Sandy Mokbel find current evaluations of public projects suffer from serious flaws, exposing taxpayers to unaccounted-for risks and bad investment decisions.

Can Google and Internet Search Data Predict Recessions?

TORONTO, - Predicting recessions in real-time could be made possible by mining vast new sources of electronic data, according to a report released today by the C.D. Howe Institute. In "Predicting Recessions in Real-Time: Mining Google Trends and Electronic Payments Data for Clues," author Greg Tkacz, pronounced "katch", considers whether Google searches and the growth of electronic payments variables, such as debit and credit card transactions, would have predicted the 2008 - 2009 recession.

Ontario Needs to Gear Up for Major Pension Reform Challenges

TORONTO, - After five years of smaller reforms, Ontario should get on with fixing major shortcomings that remain in its workplace pension system, according to a report released today by the C.D. Howe Institute. In "Ontario Pension Policy 2013: Key Challenges Ahead," author Barry Gros identifies the main flaws of the current system and urges the government, particularly through its new strategic pension reform secretariat, to proceed with needed reforms to ensure affordable pension plans that are sustainable and operate within a clear set of unbiased rules.

More Opportunities than Risks in a Canada-EU Trade Deal

TORONTO, - Canada's potential trade deal with the European Union, if it is ambitious, could generate far more opportunities than risks, according to a new report from the C.D. Howe Institute. In "Uneasy Birth: What Canadians Should Expect from a Canada-EU Trade Deal," author Daniel Schwanen outlines what would be a good deal for Canada, and suggests how negotiators can address the potentially negative impacts identified by critics. He also sets the issue in the wider context of Canada's trade with the world. "We are nearing a turning point for Canadian trade policy, whether a deal is reached in the next few weeks, or not," said Schwanen. "The issues involved are global: it is a good test case for how Canada will adapt to emerging trade realities."

Canada’s Demographic Challenge: A Population Growing “Younger”

TORONTO, - The real demographic challenge for Canadian policymakers is adapting to a population growing "younger," after taking increased life expectancies into account, says a report released today by the C.D. Howe Institute. In "The Main Challenge of Our Times: A Population Growing Younger," authors Marcel Boyer and Sébastien Boyer propose an alternative approach to population aging, which measures years to live instead of years since birth.

Working Families Face High Tax Hurdles on Extra Income

TORONTO, - Working families with children in Canada face high tax hurdles that could dissuade them from earning extra income, according to a report released today by the C.D. Howe Institute. In "Treading Water: The Impact of High METRs on Working Families in Canada," authors Alexandre Laurin and Finn Poschmann find low-to- mid-income Canadians face taxes on incremental income generally higher than those faced by high-income families.

True Costs of Congestion Underestimated in Canada’s Cities

TORONTO, - The true costs of congestion in Canada's cities are higher than previously estimated, according to a report released today by the C.D. Howe Institute. In "Cars, Congestion and Costs: A New Approach to Evaluating Government Infrastructure Investment," author Benjamin Dachis says there are social and economic costs to congestion that governments should take into account when investing in infrastructure, beyond the cost of time lost in traffic.

The 8 Percent Solution: A Sensible Tax Compromise for Albertans

A revenue-neutral tax swap would improve Alberta's fiscal prospects, according to a report released today by the C.D. Howe Institute. In "The 8 Percent Solution: A Sensible Tax Compromise for Albertans," authors Colin Busby and Alexandre Laurin propose a change that would better equip Alberta's government to meet its longer-term fiscal challenges, which include plunging resource revenues and growing budget deficits.