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The Theory And Practice Of Equalization

Author

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  • Robin Boadway
Abstract
This paper presents a selective and non-technical survey of the role of intergovernmental equalization transfers as a device for achieving efficiency in the allocation of labor across regions in a decentralized nation, and for achieving fiscal equity among residents of various regions. We discuss some of the issues that arise in attempting to put the principles of equalization into practice.

Suggested Citation

  • Robin Boadway, 2003. "The Theory And Practice Of Equalization," Working Paper 1016, Economics Department, Queen's University.
    • Handle: RePEc:qed:wpaper:1016
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    File URL: https://www.econ.queensu.ca/sites/econ.queensu.ca/files/qed_wp_1016.pdf
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    References listed on IDEAS

    as
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    3. Wildasin, David E., 1997. "Externalities and bailouts : hard and soft budget constraints in intergovernmental fiscal relations," Policy Research Working Paper Series 1843, The World Bank.
    4. Robin Boadway & Katherine Cuff & Maurice Marchand, 2003. "Equalization and the Decentralization of Revenue–Raising in a Federation," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 5(2), pages 201-228, April.
    5. Sam Bucovetsky & Michael Smart, 2006. "The Efficiency Consequences of Local Revenue Equalization: Tax Competition and Tax Distortions," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 8(1), pages 119-144, January.
    6. Robin W. Boadway & Frank R. Flatters, 1982. "Efficiency and Equalization Payments in a Federal System of Government: A Synthesis and Extension of Recent Results," Canadian Journal of Economics, Canadian Economics Association, vol. 15(4), pages 613-633, November.
    7. Boadway, Robin & Marchand, Maurice & Vigneault, Marianne, 1998. "The consequences of overlapping tax bases for redistribution and public spending in a federation," Journal of Public Economics, Elsevier, vol. 68(3), pages 453-478, June.
    8. Mansoorian, Arman & Myers, Gordon M., 1993. "Attachment to home and efficient purchases of population in a fiscal externality economy," Journal of Public Economics, Elsevier, vol. 52(1), pages 117-132, August.
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    14. Konrad, Kai A. & Seitz, Helmut, 2001. "Fiscal federalism and risk sharing in Germany: the role of size differences [Risikokonsolidierung im Rahmen des deutschen Länderfinanzausgleichs: die Rolle von Größenunterschieden]," Discussion Papers, Research Unit: Market Processes and Governance FS IV 01-20, WZB Berlin Social Science Center.
    15. Myers, Gordon M., 1990. "Optimality, free mobility, and the regional authority in a federation," Journal of Public Economics, Elsevier, vol. 43(1), pages 107-121, October.
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    More about this item

    Keywords

    Intergovernmental Transfers; Equalization;

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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