EconPapers    
Economics at your fingertips  
 

Measuring Regional Fiscal Transfers Induced by National Budgets

Ramon Caminal ()

International Tax and Public Finance, 2000, vol. 7, issue 2, 195-205

Abstract: National budgets typically induce a substantial redistribution of resources across regions. In this paper I propose an economic definition of such implicit fiscal transfers, which, in the absence of gains or losses out of centralizing fiscal policy, is particularly suitable for territorial equity discussions. In my view the fiscal transfer of a region is equivalent to the region's willingness to pay for achieving fiscal independence. Such implicit transfers are also characterized in the context of a model where public debt is exclusively motivated by the tax-smoothing principle. It turns out that the fiscal transfer of a region can be computed by adding the region's primary balance and an allocation of the national primary deficit according to a linear combination of the region's share of receipts and expenditures. Thus, in general the computation of these implicit transfers requires detailed information about parameter values, which may not be available in practice. Some possible solutions are discussed. Copyright Kluwer Academic Publishers 2000

Keywords: regional transfers; public debt (search for similar items in EconPapers)
Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1023/A:1008756504887 (text/html)
Access to full text is restricted to subscribers.

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:kap:itaxpf:v:7:y:2000:i:2:p:195-205

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

DOI: 10.1023/A:1008756504887

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-10-13
Handle: RePEc:kap:itaxpf:v:7:y:2000:i:2:p:195-205