EconPapers    
Economics at your fingertips  
 

On Autonomous Devolution from the Union Government, Provision of Local Public Goods and Welfare of the States

Moumita Chel and Vivekananda Mukherjee ()

Indian Economic Review, 2016, vol. 51, issue 1, 21-41

Abstract: Recently the Fourteenth Finance Commission of India has recommended an increase in tax devolution from 32% to 42% of the divisible pool of Union taxes to the states.Would it raise the provision of local public goods at the states and their welfare? The paper models the game between the Union government and the state governments and derives the conditions under which the increase in autonomous transfer would increase the provision of local public goods at the states and would raise their welfare. It extends the model to discuss the case with matching grants as well.

Keywords: Fiscal Federalism; Local Public Goods; Matching Grant (search for similar items in EconPapers)
JEL-codes: H41 H70 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:0109

Ordering information: This journal article can be ordered from
http://www.ierdse.org/

Access Statistics for this article

Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar

More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().

 
Page updated 2020-07-14
Handle: RePEc:dse:indecr:0109