November 21, 2012 – MLI’s recent study on provincial solvency was highlighted in a National Post article. The article discusses Alberta’s ability to balance its budget and it quotes the paper’s findings:
In fact, this was exactly the spectre raised by the Macdonald-Laurier Institute in October; in a paper examining the fiscal projections of the provinces, it predicted Alberta’s probability of a sovereign default to be 84% within the next 30 years — this despite the fact the province currently holds no net debt. That’s the highest probability assigned to any Canadian province. The institute based its assumptions on current spending, Alberta’s aging population and the high risk of a resource price shock.
The full study can be found here: Provincial Solvency and Federal Obligations, by Marc Joffe, October 18, 2012