1 These two terms are used interchangeably in the literature and we will follow this convention in this analysis. However, since one of the purposes of this article is to argue for the importance of the constituency or client for a policy instrument in shaping its characteristics in use, the term governing instrument would seem to be the less desirable of the two because of the implication in the term of an exclusive focus on choices made within the government.

2 Doern, G. Bruce and Wilson, V. Seymour (eds.), Issues in Canadian Public Policy (Toronto: Macmillan, 1974);Google ScholarPhidd, Richard W. and Doern, G. Bruce, The Politics and Management of Canadian Economic Policy (Toronto: Macmillan, 1978);Google ScholarDoern, G. Bruce and Phidd, Richard W., Canadian Public Policy: Ideas, Structure, Process(Toronto: Methuen, 1983);Google ScholarTrebilcock, M. J., Hartle, D. G., Prichard, R. S. and Dewees, D. N., The Choice of Governing Instrument (Ottawa: Ministry of Supply and Services, 1982);Google ScholarPrichard, J. Robert S. (ed.), Crown Corporations in Canada: The Calculus of Instrument Choice (Toronto: Butterworths, 1983);Google Scholar and Woodside, Kenneth, “The Political Economy of Policy Instruments: Tax Expenditures and Subsidies in Canada,” in Atkinson, M. M. and Chandler, M. A. (eds.), The Politics of Canadian Public Policy (Toronto: University of Toronto Press, 1983), 173–97.Google Scholar

3 Doern, and Phidd, , Canadian Public PolicyGoogle Scholar, and Atkinson and Chandler (eds.), The Politics of Canadian Public Policy.

4 Edelman, Murray, The Symbolic Uses of Politics (Urbana: University of Illinois Press, 1964)Google Scholar, and also Politics as Symbolic Action: Mass Arousal and Quiescence(Chicago: Markham Publishing Company, 1971).Google Scholar

5 Tupper, Allan and Doern, G. Bruce (eds.), Public Corporations and Public Policy in Canada (Montreal: Institute for Research on Public Policy, 1981);Google Scholar and Prichard, J. Robert S. (ed.), Crown Corporations in Canada.Google Scholar

6 Surrey, Stanley S., Pathways to Tax Reform (Cambridge: Harvard University Press, 1973)CrossRefGoogle Scholar. Also see a special issue of the journal Canadian Taxation (Vol. 1, No. 2, Summer 1979)Google Scholar which focussed on the concept of tax expenditures.

7 A good overview of this literature can be found in W. T. Stanbury and George Lermer, “Regulation and the Redistribution of Income and Wealth,” Canadian Public Administration 26 (1983), 378–401.CrossRefGoogle Scholar

8 Pierce, Lawrence C., The Politics of Fiscal Policy Formation (Pacific Palisades, California: Goodyear Publishing Company, 1971), 27.Google Scholar

9 The most significant articles by Lowi, in this regard, are Lowi, Theodore J., “American Business, Public Policy, Case-Studies, and Political Theory,” World Politics 16 (1964), 677–715:CrossRefGoogle ScholarLowi, Theodore J., “Decision Making vs. Policy Making:Toward an Antidote for Technocracy,” Public Administration Review 30 (1970), 314–24;Google Scholar and Lowi, Theodore J., “Four Systems of Policy, Politics and Choice,” Public Administration Review 22 (1972), 298–310.CrossRefGoogle Scholar This debt is clearly acknowledged in Doern and Wilson (eds.), Issues in Canadian Public Policy, 8–35, 337–45.

10 Lowi, “Four Systems of Policy, Politics, and Choice,” 299.

11 Lowi, “American Business, Public Policy, Case-Studies, and Political Theory,” 688–91.

12 Lowi, “Four Systems of Policy, Politics, and Choice,” 301–02. For a discussion of Lowi's work as well as that of others and an attempt to extend the approach to policiesthat do not involve expenditures, see Salisbury, Robert and Heinz, John, “A Theory of Policy Analysis and Some Preliminary Applications,” in Sharkansky, Ira (ed.), Policy Analysis in Political Science (Chicago: Markham Publishing, 1970), 39–60.Google Scholar

13 Doern, G. Bruce and Aucoin, Peter, “Introduction,” in Doern, G. Bruce and , Peter Aucoin (eds.), The Structures of Policy-Making in Canada (Toronto: Macmillan, 1971), 4.Google Scholar

14 Doern, G. Bruce, “The Concept of Regulation and Regulatory Reform,” in Wilson, Doern (eds.), Issues in Canadilan Public Policy, 11.Google Scholar

15 Doernand, O. BruceWilson, V. Seymour, “Conclusions and Observations,” in Wilson, Doernand (eds.), Issues in Canadian Public Policy, 339.Google Scholar

16 Phidd, and Doern, , The Politics and Management of Canadian Economic Policy, 70:Google Scholar and Doern, and Phidd, , Canadian Public Policy, 293.Google Scholar

17 Phidd, and Doern, , The Politics and Management of Canadian Economic Policy, 532,563.Google Scholar

18 Doernand, G. BruceWilson, V. Seymour, “Conclusions and Observations,” in Wilson, Doernand (eds.), Issues in Canadian Public Policy, 339.Google Scholar

19 Doern, and Phidd, , Canadian Public Policy, 111.Google Scholar

20 Ibid., 300–11.

21 Ibid., chaps. 5, 12.

22 For a recent discussion of the pattern of growth in the use of policy instruments in Canada, see Doern, G. Bruce, “The Politics of Canadian Economic Policy: An Overview,” in Doern, G. Bruce, research co-ordinator, The Politics of Economic Policy, vol. 40Google Scholar of the Research Studies prepared for the Royal Commission on the Economic Union and Development Prospects for Canada (Toronto: University of Toronto Press, 1985), 1–109.

23 Trebilcock, Hartle, Prichard and Dewees, The Choice of Governing Instruments.

24 Ibid., 23.

25 Ibid., 34.

26 Ibid., 13.

27 Ibid., 11.

28 Ibid., 2, 22.

29 Forinstance, see Johnston, Richard, Public Opinion and Public Policy in Canada, vol. 35Google Scholar of the Research Studies prepared for the Royal Commission on the Economic Union and Development Prospects for Canada (Toronto: University of Toronto Press, 1986; Alt, James E. and Chrystal, K. Alec, Political Economics (Los Angeles: University of California Press, 1983):Google ScholarKiewiet, D. Roderick, Macroeconomics and Micropolitics: The Electoral Effects of Economic Issues (Chicago: University of Chicago Press, 1983);Google Scholar and Tufte, Edward R., Political Control of the Economy (Princeton: Princeton University Press, 1978).Google Scholar

30 Prichard, J. Robert S. and Trebilcock, Michael J., “Crown Corporations in Canada:The Choice of Instrument,” in Atkinson, and , Chandler (eds.)Google Scholar, The Politics of Canadian Public Policy, 199–222; and Prichard, J. Robert S. (ed.), Crown Corporations in Canada.Google Scholar

31 Tupper, and , Doern (eds.), Public Corporations and Public Policy in CanadaGoogle Scholar, and Hardin, Herschel, A Nation Unaware: The Canadian Economic Culture (Vancouver:J. J. Douglas, 1974).Google Scholar

32 Prichard, and , Trebilcock, “Crown Corporations in Canada,” and Prichard, (ed.), Crown Corporations in Canada.Google Scholar

33 Chandler, Marsha A., “The Politics of Public Enterprise,” in Prichard, (ed.), Crown Corporations in Canada, 185–218.Google Scholar

34 Ibid., "206–17.

35 Stanbury, W. T. and Lermer, George, “Regulation and the Redistribution of Incomeand Wealth,” Canadian Public Administration 26 (1983), 381;CrossRefGoogle Scholar and Doern, G. Bruce, “Regulatory Processes and Regulatory Agencies,” in Doern, G. Bruce and Aucoin, Peter (eds.), Public Policy in Canada: Organization, Process and Management (Toronto: Macmillan, 1979), 158.Google Scholar

36 Doern, and Phidd, , Canadian Public Policy, 306.Google Scholar

37 Lewis, Alan, The Psychology of Taxation (Oxford: Martin Robertson, 1982), 41, 42.Google Scholar

38 Ibid., 44–45, 49, 50.

39 Woodside, “The Political Economy of Policy Instruments.”

40 Ibid. Also see the special issue of Canadian Taxation (Vol. I, No. 2, Summer 1979).

41 Stanbury, William T. and Fulton, Jane, “Suasian as a Governing Instrument,” in Maslove, Allan M. (ed.), How Ottawa Spends 1984: The New Agenda (Ottawa: School of Public Administration, Carleton University, 1984), 282–24.Google Scholar

42 Ibid., 283.

43 Ibid., 284–93.

44 Ibid., 297–301.

45 Ibid., 297.

46 Consider, for example, the differing approaches to tax evasion and social securityabuse. Punishments for social security abuse are much more severe. This not onlyreflects differing degrees of concern on the part of government but also that thegeneral public seems to be less antagonistic to tax abuse than social security abuse. See the special issue “Comparing Tax and Social Security Abuse,” in Canadian Taxation (Vol. 2, No. 2 Summer, 1980), 82–111.Google Scholar Also see Lewis, The Psychology of Taxation.

47 For a useful discussion of the privileged position of capital and big business withinpluralist democracies see Lindblom, Charles E., Politics and Markets: The World's Political-Economic Systems (New York: Basic Books, 1977).Google Scholar Also see Panitch, Leo (ed.), The Canadian State (Toronto: University of Toronto Press, 1977).Google Scholar

48 While Doern and Phidd suggest part of this argument as a qualification to anyassessment of instrument choice, they present it more as a problem of policyco-ordination. While this is undoubtedly true, it is also important as a factor inunderstanding restraints on instrument choice within government and this needsmuch more emphasis than it usually receives. See Doern and Phidd, Canadian Public Policy, 132–33.

49 Doern and Phidd are more guarded and careful in their discussion of the reasonsbehind the choice of a policy instrument, suggesting a range of factors such asideology, constitutional and legal considerations that are important. However, thesefactors are raised more as qualifications to their argument than as central features inthe use of these instruments. See Doem and Phidd, Canadian Public Policy, 131–35.

50 Lowi, “American Business, Public Policy, Case-Studies, and Political Theory,” 690ff.

51 Good, David A., The Politics of Anticipation: Making Canadian Federal Tax Policy (Ottawa: School of Public Administration, Carleton University, 1980);Google ScholarGillespie, W. Irwin, “Tax Reform: The Battlefield, the Strategies, the Spoils,” in Canadian Public Administration 26 (1983), 182–202;CrossRefGoogle Scholar and Kenneth Woodside, “The Symbolic Politics of Corporate Income Taxation: Canada and Britain 1945–1980,” in Stoneand, AlanHarpham, Edward J. (eds.), The Political Economy of Public Policy, Sage Yearbooks in Politics and Public Policy, Volume 10 (Beverly Hills: Sage Publications, 1982), 189–210.Google Scholar Also, see Eisenstein, Louis, The Ideologies of Taxation (New York:The Ronald Press, 1961);Google Scholar and Manley, John F., The Politics of Finance: The House Committee on Ways and Means (Boston: Little, Brown and Company, 1970).Google Scholar

52 McCraw, Thomas K., “Regulation in America: A Review Article,” Business History Review 49 (1975);Google ScholarStanbury, W. T. (ed.), Government Regulation: Scope, Growth, Process (Montreal: Institute for Research on Public Policy, 1980).Google Scholar

53 In the area of telecommunication, for instance, see Schultz, Richard J., “Regulationas Maginot Line: Confronting the Technological Revolution in Telecommunications,” Canadian Public Administration 26 (1983), 203–18;CrossRefGoogle ScholarJanisch, Hudson and Irwin, Manley, “Information Technology and Public Policy: Regulatory Implications for Canada.” Osgoode Hall Law Journal 20 (1982), 610–41.Google Scholar

54 Schultz, Richard and Alexandroff, Alan, Economic Regulation and the Federal System, vol. 42Google Scholar of the Research Studies commissioned by the Royal Commission onthe Economic Union and Development Prospects for Canada (Toronto: University of Toronto Press, 1985), esp. 13–35.

55 For a flavour of the character of this debate see André Blais, research coordinator, Industrial Policy, Vol. 44Google Scholar of the Research Studies commissioned by the Royal Commission on the Economic Union and Development Prospects for Canada(Toronto: University of Toronto Press, 1986); Tupper, Allan, Public Money in the Private Sector (Kingston: Queen's University, Institute of Intergovernmental Relations, 1982);Google ScholarLipsey, Richard G. and Smith, Murray G., Taking the Initiative: Canada's Trade Options in a Turbulent World (Toronto: C. D. Howe Institute, 1985);Google ScholarRotstein, Abraham, Rebuilding from Within: Remedies for Canada's Ailing Economy (Ottawa: Canadian Institute for Economic Policy, 1984):Google Scholar and Watson, William G., A Primer on the Economics of Industrial Policy (Toronto: Ontario Economic Council, 1983).Google Scholar

56 Tupper, Public Money in the Private Sector, and Richard Schultz and Alan Alexandroff, Economic Regulation and the Federal System, chap. 4.

57 Huffmann, K. J., Langford, J. W. and Neilson, W. A. W., “Public Enterprise and Federalism in Canada,” in Simeon, Richard(research coordinator), Intergovernmental Relations, vol. 63Google Scholar of the Research Studies commissioned by the Royal Commission on the Economic Union and Development Prospects for Canada(Toronto: University of Toronto Press, 1985), 131–78.

58 Chandler, “The Politics of Public Enterprise,” 206ff.

59 Stanbury and Fulton, “Suasion as a Governing Instrument,” 284ff.