Fiscal Adjustment and Economic Development: A Case Study of Nova Scotia

This study is an attempt to find a solution to the problem of fiscal adjustment between a province or a state and its municipalities-a pressing problem throughout Canada and the United States and in many other countries in view of the great disparities in the revenue-raising capacity of municipalities, their limited tax bases, and the pressure on them to provide higher levels of public services. The principles developed are of general applicability, but their use is illustrated by using Nova Sco…