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Need Equalization Transfers and Productive Efficiency of Local Governments

Alessandro Petretto ()

Rivista italiana degli economisti, 2013, issue 1, 25-46

Abstract: The paper deals with Need equalization formula for intergovernmental grants, and analyses,by a simple model, the impact of parameters changes on productive efficiency of a local government.By this kind of efficiency we mean producing and providing, at minimum cost and at high quality, a output level of a public service at least equal to a standard, fixed by the central government for pursuing horizontal equity among jurisdictions. In some German Landers the municipal transfers system is broadly inspired by such a criterion, and the recent reform of Italian equalization grants system moves in this direction.

Keywords: Need Equalization; Local Public Services Provision; Quality and Cost-Efficiency. (search for similar items in EconPapers)
Date: 2013
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Working Paper: Need Equalization transfers and Productive Efficiency of Local Governments (2010) Downloads
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Handle: RePEc:mul:jqat1f:doi:10.1427/72898:y:2013:i:1:p:25-46