Intergovernmental Fiscal Transfers, Investment Decisions and Outcomes: The Case of the Gas Tax Fund in Ontari

Considering the importance of transfer payments to the Canadian fiscal policy framework, this dissertation seeks to identify under what conditions these instruments are chosen, and what drives the combination of design features that result in different transfer systems. Moreover, because policies are implemented to address a given problem, this research also seeks to explore how the chosen design and other potential intervening factors result in the successful attainment of the policy objectives or the failure to do so, as well as their relation to the policy outputs and outcomes. This dissertation explores those issues using as a case study the Gas Tax Fund transfer in Ontario.;The evidence gathered is analyzed through a policy design and implementation analytical framework and an intergovernmental fiscal transfer framework. The research uses both quantitative and qualitative research methods of inquiry.;The dissertation's empirical findings show a direct link between the federal, provincial, and municipal context and the creation of the Gas Tax Fund, as well as its distinctive design features. Furthermore, the evidence suggests that the program's governance structure and the administration, enforcement and accountability procedures influenced the success of the implementation. The AMO and the municipalities have all successfully implemented the policy without major complications and have been meeting their roles and responsibilities as outlined in the agreement. In terms of outcomes and impacts, the research shows that there were several factors that affected them both in positive and negative ways. The econometrics analysis suggests that the program has a considerable effect on infrastructure expenditures as a dollar of transfer generates $1.27 of additional spending. Overall, municipalities have been able to make incremental investments in all the project categories that will result in new and improved infrastructure.;The dissertation's findings contribute to academic research and to the larger community concerned with public policy and fiscal federalism by addressing the knowledge gap left in the existing academic research evaluating the establishment of current transfer payment arrangements in Canada and their impact. They illuminate the influence of contextual factors in policy development in general, the challenges of transfer payment implementation, and the relation between stated goals and actual outcomes.