Subsidiaritetsprincipen är ett verktyg för att kontrollera maktfördelningen i en konstruktion som innebär att det finns olika nivåer av beslutsfattande. Principen har i EU två huvudsakliga funktioner; att värna medlemsstaternas suveränintet samt, om nödvändigt, ge beslutsmakten till den nivå som på mest effektiva sätt kan genomföra en åtgärd. Subsidiaritetsprincipens utformning i fördragen har gett upphov till ett flertal diskussioner. Exempelvis om vilka åtgärder som faller inom EU:s exklusiva kompetens respektive vilka åtgärder som bör fallla under den konkurrerande kompetensen och därmed avgöras i enlighet med subsidiaritetsprincipen. Mitt syfte med denna uppsats är att ge en utförlig beskrivning av, samt diskutera kring, subsidiaritetsprincipens innebörd och omfattning, både i sitt EU-sammanhang samt som ett teoretiskt naturrättsligt begrepp. Vidare diskuteras det i uppsatsen hur långt subsidiaritetsprincipen bör sträcka sig samt huruvida en kompetenskatalog bör skapas för att reglera förhållandet mellan EU och dess medlemsstater. Min slutsats är att subsidiaritetsprincipen endast bör reglera förhållandet mellan EU och medlemsstaterna, samt att en kompetenskatalog kan komma att innebära ett skapande av en europeisk konstitution.

The transition from an industrial to a global knowledge-based economy has put universities in the spotlight of public policies as the new drivers of innovation and sustained economic growth. Consequently, societal expectations towards the academic community have changed and so has, under the influence of neo-liberal ideas, the public governance of higher education. This is particularly true in federalist systems, such as Germany, Australia and the European Union, where the roles of each government level in governing the higher education sector had to be renegotiated and clarified. In Canada, however, despite repeated recommendations by policymakers, scholars and international organisations, the respective responsibilities have not yet been clarified and, to date, there are still no mechanisms to coordinate the post-secondary education policies of the federal and provincial governments. This paper inquires into the reasons for this exception. In the academic literature, this has generally been explained in terms of Canada’s uniqueness with respect to its federalist system and the decentralized higher education sector. We attempt to go beyond this traditional federalism, state-centered approach, which is predominant in the Canadian higher education literature. Instead, based on interviews and official documents and inspired by the Advocacy Coalition Framework (ACF), we shall be looking at the belief systems of the major actors in the policy process and the degree of coordination among them. Our analysis comes to the conclusion that, on the one hand, proponents of a pan-Canadian approach are divided over their fundamental beliefs regarding the compatibility of inclusiveness and excellence. Some argue that the federal government must legislate common standards to ensure equal opportunities for all Canadians. Others propose a New Governance-inspired approach to create a differentiated and competitive university sector that meets the demands of the global knowledge-based economy more efficiently. On the other hand, even though the provinces differ in their beliefs regarding the equal opportunity versus economic efficiency debate, they share the same strong belief with respect to the role of the federal government. According to this view, post-secondary education is exclusively a provincial responsibility and the role of the federal government is solely to help them ‘fix the problems’. Moreover, contrary to the proponents of more intergovernmental collaboration, the provinces have successfully strengthened the coordination among themselves to block further perceived federal intrusions into provincial jurisdiction. We come to the conclusion that the absence of intergovernmental mechanisms to govern post-secondary education is a consequence of the diverging belief systems and the establishment of formal coordination structures among the provinces to block – as they perceive - further federal intrusions. Also, there is less of a sense of urgency to act compared to, say, health care. Finally, remembering the near-separation of Quebec in 1995, there is very little appetite to reopen the constitutional debates. Therefore, based on our analysis, we argue that contrary to suggestions by some higher education scholars, the establishment of intergovernmental coordinating mechanisms appears unlikely in the near future.

This thesis contributes to the fields of Public Economics and Development Economics by studying human capital formation under three scenarios. Each scenario is represented in an individual paper between Chapters 2 to 4 of this thesis. Chapter 2 examines the effect of child care financing, through human capital formation, on growth and welfare. There is an extensive literature on the benefits of child care affordability on labour market participation. The overall inference that can be drawn is that the availability and affordability of appropriate child care may enhance parental time spent outside the home in furthering their economic opportunities. In another front, the endogenous growth literature exemplifies the merits of subsidizing human capital in generating growth. Again, other contributions demonstrate the negative implications of taxes on the returns from human capital on long run growth and welfare. This paper assesses the long run welfare implications of child care subsidies financed by proportional income taxes when human capital serves as the engine of growth. More specifically, using an overlapping-generations framework (OLG) with endogenous labour choice, we study the implications of a distortionary wage income tax on growth and welfare. When the revenues from proportional income taxes are channelled towards improving economic opportunities for both work and schooling investments in the form of child care subsidies, long run physical and human capital stock may increase. A higher level of growth may ensue leading to higher welfare. Chapter 3 answers the question of how child care subsidization works in the interest of skill formation, and specifically, whether child care subsidization policies can work to the effect of human capital subsidies. Ample studies have highlighted the significance of early childhood learning through child care in determining the child’s longer-term outcomes. The general conclusion has been that the quality of life for a child, higher earnings during later life, as well as the contributions the child makes to society as an adult can be traced back to exposures during the first few years of life. Early childhood education obtained through child care has been found to play a pivotal role in the human capital base amongst children that can benefit them in the long run. Based on this premise, the paper develops a simple Overlapping Generations Model (OLG) to find out the implications of early learning on future investments in human capital. It is shown that higher costs of child care will reduce skill investments of parents. Also, for some positive child care cost, higher human capital obtained through early childhood education can induce further skill investments amongst individuals with a higher willingness to substitute consumption intertemporally. Finally, intervention that can internalize the intra-generational human capital externalities arising from parental time spent outside the home - for which care/early learning is required to be purchased for the child - can unambiguously lead to higher skill investments by all individuals. Chapter 3 therefore proposes policy intervention, such as child care subsidization, as the effect of such will be akin to a human capital subsidy. The objective of Chapter 4 is to understand the implications of inter-regional mobility on higher educational investments of individuals and to study in detail the impact of mobility on government spending for education under two particular scenarios – one in which human capital externalities are non-localized and spill over to other regions (e.g. in the form of R&D), and another in which the externalities are localized and remain within the region. It is shown that mobility enhances private investments in education, and all else equal, welfare should be higher with increased migration. The impacts on government educational expenditures are studied and some policy implications are drawn. In general, with non-localized externalities, all public expenditures decline under full-migration. Finally under localized externalities, the paper finds that governments will increase their financing of education to increasingly mobile individuals only when agglomeration benefits outweigh congestion costs from increases in regional population.

Canadian federalism has experienced pressure for change in recent years. By the end of the twentieth century, collaboration became the catch word and federations throughout the world, including Canada, witnessed an emergent movement toward collaborative governance, collaborative public service delivery, collaborative management and collaborative approaches to addressing social and economic issues. But even if the number of collaborative arrangements has grown since the 1990s, the understanding of the design, management and performance of collaborative arrangements in the Canadian federation remains weak. Accordingly, this dissertation argues that, in order to understand and open the black box of intergovernmental collaboration, it is necessary to put collaboration in a historical context and explore the roles of elites and political institutions in shaping intergovernmental collaborative practices. The role of the former provides the necessary complement of agency, while that of the latter represents a perspective that gives theoretical importance to political institutions. The integration of the two theoretical schools, elite theory and historical institutionalism, into one approach constitutes an attractive solution and offers the tools necessary to explore the complex processes of intergovernmental collaboration. The theoretical framework constructed in this dissertation is then applied to analyze whether the Agreement on Internal Trade, the Social Union Framework Agreement and the Council of the Federation can be considered in reality as examples of collaborative federalism.

Using the language of rights and national self-determination, Aboriginal peoples have mounted a fundamental challenge to Canadian federalism in the past forty years. In order to move beyond the imposed structure of colonial governance, Aboriginal peoples have sought to establish their own form of federal relationship with contemporary Canadian governments and society. While much attention has been devoted to the constitutional and legal dimensions of Aboriginal challenges to state authority, this thesis argues that incremental yet fundamental changes are also taking place in the less visible but nonetheless important arena of policy-making. Aboriginal claims for greater political recognition, combined with the redefinition of the role of the state associated with neoliberal ideas, have led to the emergence of multilevel governance practices between Aboriginal governing authorities and their federal and provincial counterparts. While they do not alter the formal nature of state authority as defined in the constitution, multilevel policy exercises are characterized by growing interdependencies between Aboriginal and non-Aboriginal governing actors, leading to a partial displacement of formal rules of authoritative decision-making in favor of joint decision-making processes and negotiated solutions to policy disputes. Building on comparative analyses of the transformations in the governance regimes of the James Bay Crees and Kahnawa:ke Mohawks, this thesis argues that these multilevel exercises can become transformative spaces for Aboriginal peoples to reshape their relationship with the state and establish themselves as representatives of distinct political communities with their own sources of authority and legitimacy independent of federal and provincial parliaments. As a result, I argue a new form of federalism may well be emerging not through constitutional negotiations or treaty-making exercises, but from below, in everyday practices of governance.

This dissertation investigates whether higher levels of “governmental fragmentation” in metropolitan statistical areas (MSA) leads to worse environmental outcomes. Fragmentation refers to the number of local governments in a given region or MSA as defined by the census. This research contributes to two bodies of literature, that of environmental federalism and that of urban growth and local government form. In the area of environmental federalism this dissertation extends the collective action model to include local governments. An empirical framework is developed that includes cross-sectional and panel data. In the urban growth and local government form literature, this dissertation comprehensively tests many existing measures of local government fragmentation within an environmental policy framework. It also modifies and extends some of the fragmentation variables. The results suggest that local government fragmentation does hinder MSAs from attaining the ozone standard. This dissertation extends the literature by examining the effect that local government fragmentation has on regional environmental quality. Six local government structure variables, jurisdiction count, special district dominance, central city dominance, county primacy, central city growth, and metropolitan power diffusion index are comprehensively tested to determine which might affect regional environmental quality. In addition, this research extends the use of the computationally complex measure of metropolitan power diffusion index to include additional local government expenditures as well as additional years of panel data. Two empirical estimation strategies were implemented, a cross-sectional approach and a panel data approach. The cross-sectional approach estimates the effects that long-term changes in local government structure have on attaining the ozone standard by measuring differences across MSAs. The panel data model’s primary purpose was that of a robustness check on the cross-sectional results. Three of the six tested fragmentation variables were found to have statistically significant effects on MSA attainment of the ozone standard in the cross-sectional model. Higher levels of metropolitan power diffusion index and jurisdiction count were found to hinder attainment of the ozone standard, while greater values of central city growth aided in reaching the attainment standard. Generally, the panel data results’ supported the results from the cross-sectional models. In addition, the panel model resolved some important estimation issues. Metropolitan power diffusion index was found to be correlated with unobservables in the random effects model, indicating that the cross-sectional results for metropolitan power diffusion index may be biased as well. This was not an issue for the variable jurisdiction count. Metropolitan power diffusion index and jurisdiction count are highly correlated with each other and this relationship was used to estimate a reasonable range for the effect metropolitan power diffusion index might have on the attainment of the ozone standard.

The ad hoc Offshore Accords signed between the Martin Government, and each Newfoundland and Nova Scotia have fundamentally altered the landscape of regional redistribution in Canada. The fallout from the Accords has had an immediate impact on the functioning of the Equalization Program and the political factors that inform debate over future reforms. This thesis examines the factors that led to the February 2005 Offshore Accords. It also examines the case of Saskatchewan's treatment under the Equalization Program

Using the language of rights and national self-determination, Aboriginal peoples have mounted a fundamental challenge to Canadian federalism in the past forty years. In order to move beyond the imposed structure of colonial governance, Aboriginal peoples have sought to establish their own form of federal relationship with contemporary Canadian governments and society. While much attention has been devoted to the constitutional and legal dimensions of Aboriginal challenges to state authority, this thesis argues that incremental yet fundamental changes are also taking place in the less visible but nonetheless important arena of policy-making. Aboriginal claims for greater political recognition, combined with the redefinition of the role of the state associated with neoliberal ideas, have led to the emergence of multilevel governance practices between Aboriginal governing authorities and their federal and provincial counterparts. While they do not alter the formal nature of state authority as defined in the constitution, multilevel policy exercises are characterized by growing interdependencies between Aboriginal and non-Aboriginal governing actors, leading to a partial displacement of formal rules of authoritative decision-making in favor of joint decision-making processes and negotiated solutions to policy disputes. Building on comparative analyses of the transformations in the governance regimes of the James Bay Crees and Kahnawa:ke Mohawks, this thesis argues that these multilevel exercises can become transformative spaces for Aboriginal peoples to reshape their relationship with the state and establish themselves as representatives of distinct political communities with their own sources of authority and legitimacy independent of federal and provincial parliaments. As a result, I argue a new form of federalism may well be emerging not through constitutional negotiations or treaty-making exercises, but from below, in everyday practices of governance.

The transition from an industrial to a global knowledge-based economy has put universities in the spotlight of public policies as the new drivers of innovation and sustained economic growth. Consequently, societal expectations towards the academic community have changed and so has, under the influence of neo-liberal ideas, the public governance of higher education. This is particularly true in federalist systems, such as Germany, Australia and the European Union, where the roles of each government level in governing the higher education sector had to be renegotiated and clarified. In Canada, however, despite repeated recommendations by policymakers, scholars and international organisations, the respective responsibilities have not yet been clarified and, to date, there are still no mechanisms to coordinate the post-secondary education policies of the federal and provincial governments. This paper inquires into the reasons for this exception. In the academic literature, this has generally been explained in terms of Canada’s uniqueness with respect to its federalist system and the decentralized higher education sector. We attempt to go beyond this traditional federalism, state-centered approach, which is predominant in the Canadian higher education literature. Instead, based on interviews and official documents and inspired by the Advocacy Coalition Framework (ACF), we shall be looking at the belief systems of the major actors in the policy process and the degree of coordination among them. Our analysis comes to the conclusion that, on the one hand, proponents of a pan-Canadian approach are divided over their fundamental beliefs regarding the compatibility of inclusiveness and excellence. Some argue that the federal government must legislate common standards to ensure equal opportunities for all Canadians. Others propose a New Governance-inspired approach to create a differentiated and competitive university sector that meets the demands of the global knowledge-based economy more efficiently. On the other hand, even though the provinces differ in their beliefs regarding the equal opportunity versus economic efficiency debate, they share the same strong belief with respect to the role of the federal government. According to this view, post-secondary education is exclusively a provincial responsibility and the role of the federal government is solely to help them ‘fix the problems’. Moreover, contrary to the proponents of more intergovernmental collaboration, the provinces have successfully strengthened the coordination among themselves to block further perceived federal intrusions into provincial jurisdiction. We come to the conclusion that the absence of intergovernmental mechanisms to govern post-secondary education is a consequence of the diverging belief systems and the establishment of formal coordination structures among the provinces to block – as they perceive - further federal intrusions. Also, there is less of a sense of urgency to act compared to, say, health care. Finally, remembering the near-separation of Quebec in 1995, there is very little appetite to reopen the constitutional debates. Therefore, based on our analysis, we argue that contrary to suggestions by some higher education scholars, the establishment of intergovernmental coordinating mechanisms appears unlikely in the near future.

This thesis contributes to the fields of Public Economics and Development Economics by studying human capital formation under three scenarios. Each scenario is represented in an individual paper between Chapters 2 to 4 of this thesis. Chapter 2 examines the effect of child care financing, through human capital formation, on growth and welfare. There is an extensive literature on the benefits of child care affordability on labour market participation. The overall inference that can be drawn is that the availability and affordability of appropriate child care may enhance parental time spent outside the home in furthering their economic opportunities. In another front, the endogenous growth literature exemplifies the merits of subsidizing human capital in generating growth. Again, other contributions demonstrate the negative implications of taxes on the returns from human capital on long run growth and welfare. This paper assesses the long run welfare implications of child care subsidies financed by proportional income taxes when human capital serves as the engine of growth. More specifically, using an overlapping-generations framework (OLG) with endogenous labour choice, we study the implications of a distortionary wage income tax on growth and welfare. When the revenues from proportional income taxes are channelled towards improving economic opportunities for both work and schooling investments in the form of child care subsidies, long run physical and human capital stock may increase. A higher level of growth may ensue leading to higher welfare. Chapter 3 answers the question of how child care subsidization works in the interest of skill formation, and specifically, whether child care subsidization policies can work to the effect of human capital subsidies. Ample studies have highlighted the significance of early childhood learning through child care in determining the child’s longer-term outcomes. The general conclusion has been that the quality of life for a child, higher earnings during later life, as well as the contributions the child makes to society as an adult can be traced back to exposures during the first few years of life. Early childhood education obtained through child care has been found to play a pivotal role in the human capital base amongst children that can benefit them in the long run. Based on this premise, the paper develops a simple Overlapping Generations Model (OLG) to find out the implications of early learning on future investments in human capital. It is shown that higher costs of child care will reduce skill investments of parents. Also, for some positive child care cost, higher human capital obtained through early childhood education can induce further skill investments amongst individuals with a higher willingness to substitute consumption intertemporally. Finally, intervention that can internalize the intra-generational human capital externalities arising from parental time spent outside the home - for which care/early learning is required to be purchased for the child - can unambiguously lead to higher skill investments by all individuals. Chapter 3 therefore proposes policy intervention, such as child care subsidization, as the effect of such will be akin to a human capital subsidy. The objective of Chapter 4 is to understand the implications of inter-regional mobility on higher educational investments of individuals and to study in detail the impact of mobility on government spending for education under two particular scenarios – one in which human capital externalities are non-localized and spill over to other regions (e.g. in the form of R&D), and another in which the externalities are localized and remain within the region. It is shown that mobility enhances private investments in education, and all else equal, welfare should be higher with increased migration. The impacts on government educational expenditures are studied and some policy implications are drawn. In general, with non-localized externalities, all public expenditures decline under full-migration. Finally under localized externalities, the paper finds that governments will increase their financing of education to increasingly mobile individuals only when agglomeration benefits outweigh congestion costs from increases in regional population.