摘要:Federal grants to provincial governments have two explicit objectives: to equalize fiscal opportunity among grant-recipient governments; and to induce recipient governments to increase expenditure on grant-supported programs. In addition, federal grants inadvertently induce changes in ou tput in al! industries and provinces. The distribution of these changes in output among industries and provinces is important. Ultimately, they alter the industrial structure in both grant-recipient and non-recipient provincial economies. Furthermore, the grant-induced distribution of output may enhance or impede federal industrial development programs that are designed explicitly to attain a specific distribution of output and industrial structure within and among provinces. Industrial development programs induce changes in the industrial structure of low income provinces through changing, in a very specific way, the distribution of output among industries and provinces. Changes in industrial structure and interference with industrial development programs have implications for the reduction of provincial economic disparities. Thus, recognition of the distribution of output generated by federal grants is important in the federal government's choice of alternative grants.