Reform of the Approach to Social-Welfare Burden Sharing in the Municipal Fiscal Equalisation Scheme of Rhineland-Palatinate III

Rüdiger Parsche, Christian Baretti and Erich Langmantel

in ifo Forschungsberichte from ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Abstract: The study examined the future approach to social-welfare burden sharing in Rhineland-Palatinate. The study showed that a system oriented towards the actual additional spending of the municipalities lacks the proper incentives and is thus not advisable. A future approach should be based on indicators that cannot be changed by the local authorities, such as unemployment, long-term joblessness, population density, percentage of retired and disabled citizens. Studies based on these indicators show that this would lead to strong redistribution. An approach to social-welfare burden sharing based on these indicators could be of interest to other Länder without a social-welfare burden sharing or one based on expenditures.

JEL-codes: H71 H72 I31 (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (1)

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