 The future appropriateness of the revenue sharing between different groups of municipalities in SaxonyAlexander Eck, Joachim Ragnitz, Johannes Steinbrecher and Christian Thater in ifo Dresden Studien from ifo Institute - Leibniz Institute for Economic Research at the University of Munich Abstract: Study commissioned by the Saxon State Ministry of Finance. In Saxony all municipalities and counties are required to provide certain services independently at their own expense. In order to accomplish these tasks the jurisdictions raise own revenues and may also receive transfers from the state. The size and allocation of the transfers is computed according to a specific revenue sharing scheme. Central to this scheme is that a certain level of equality between the revenues of different groups of municipalities is achieved. The amount of transfers a municipality receives may be influenced by the local demographic developments. The study considers how well the current revenue sharing scheme is able to account for diverging demographic developments in the municipalities. Both shrinking and ageing populations may influence the municipalities’ needs for transfers in order to provide a sufficient level of service. The central goal of this study is therefore to determine whether and how the current equalization scheme needs to be adjusted to account for such population changes. JEL-codes: H71 H72 J11 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ces:ifodrs:67 Access Statistics for this book More books in ifo Dresden Studien from ifo Institute - Leibniz Institute for Economic Research at the University of Munich Contact information at EDIRC. |
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