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Verbesserte Finanzbedarfsmessung im nordrhein-westfälischen Finanzausgleich und ihre Verteilungswirkungen

Thomas Brenner () and Döring Thomas ()
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Döring Thomas: Fachbereich Gesellschaftswissenschaften, Hochschule Darmstadt, Haardtring 10064295 DarmstadtTel.: (06151)16-38743Darmstadt, Germany

Zeitschrift für Wirtschaftspolitik, 2018, vol. 67, issue 2, 189-218

Abstract: Within the local fiscal equalization system of North Rhine-Westphalia, anticipated financial needs of municipalities are estimated by the use of regression analysis. In the recent past the previously exercised regression approach shows unexpected results concerning the main parameters determining intra-system allocation of general grants. Against this background the paper analyses the reasons for these parameter variations in order to identify an alternative approach to achieve regression results with higher accuracy and time stability both of which are of particular importance from a fiscal equalization policy perspective. It will be shown that the so-called robust regression is such an alternative method which leads – in case of its implementation – to divergent distributional effects compared to the status quo.

Keywords: local fiscal equalization scheme; financial requirements measurement; Kommunaler Finanzausgleich; Finanzbedarfsmessung (search for similar items in EconPapers)
JEL-codes: H71 H (search for similar items in EconPapers)
Date: 2018
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