Front Matter Page
IMF Country Report No. 17/211
CANADA
SELECTED ISSUES AND ANALYTICAL NOTES
July 2017
This Selected Issues paper on Canada was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on June 21, 2017.
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© 2017 International Monetary Fund
Front Matter Page
CANADA
SELECTED ISSUES AND ANALYTICAL NOTES
June 21, 2017
Approved By
Western Hemisphere Department
Prepared by Kotaro Ishi, Rodrigo Mariscal, Yulia Ustyugova (all WHD), David Gentry (FAD), and Zsofia Arvai (MCM)
Contents
INFRASTRUCTURE BANK: LEVERAGING PRIVATE CAPITAL IN THE PUBLIC INTEREST
A. Introduction
B. Attracting Private Capital
C. Effects on Public Finance
D. CIB Project and Investor Selection
E. Comparative Advantages of the CIB
F. Possible Public Concerns
G. Conclusions
BOX
1. Social Versus Financial Returns to Investment
ESTIMATING THE GROWTH EFFECT OF PUBLIC INFRASTRUCTURE: EVIDENCE FROM CANADIAN PROVINCES
A. Introduction
B. The Size of the Problem
C. Policy Considerations
D. Empirics
E. Conclusion
References
ANNEX
I. Data Description
TABLES
1. Global Competitiveness Index
2. Regression Results
3. Testing Complementarity of Public Infrastructure and Private Capital
FIGURES
1. Economic Infrastructure Assets and Investment
2. General Government Economic Infrastructure Assets
3. Growth of Infrastructure and Provincial GDP, 1961-2015
4. Marginal Product of Capital
HOW ADVANCED ECONOMIES TACKLE HOUSING MARKET IMBALANCES: LESSONS FOR CANADA
A. Introduction
B. Australia and New Zealand
C. United Kingdom
D. Hong Kong SAR and Singapore
E. Conclusion
References
TABLES
1. Housing Affordability Ratings by Country: Major Housing Markets
2. United Kingdom: Stamp Duty Rates for Property Transactions
FIGURE
1. Selected Countries: Trends in Real House Prices and Household Debt
MACROPRUDENTIAL TOOLS AT WORK IN CANADA
A. Assessing the Effectiveness of Macroprudential Measures in Canada
B. International Experience
C. Conclusion
References
TABLE
1. Canada: Macroprudential Measures Related to Changes in Mortgage Insurance Rules Since 2008
ANNEX
I. Annex Tables