Fiscal equalization
Monika Köppl-Turyna
Chapter 44 in Elgar Encyclopedia of Public Choice, 2025, pp 309-313 from Edward Elgar Publishing
Abstract:
This chapter discusses fiscal equalization, a common practice in countries with multiple levels of government. It examines the purposes, models, and effects on regional disparities, fiscal policies, and policy choices of fiscal equalization. The study highlights the importance of equalization transfers in achieving horizontal equity, correcting inefficiencies, and stabilizing against shocks. It examines the impact of fiscal equalization on tax rates, regional disparities, fiscal policies, and political choices, providing evidence from several empirical studies.
Keywords: Fiscal equalization; Transfers; Subnational governments; Decentralization; Federalism (search for similar items in EconPapers)
Date: 2025
ISBN: 9781802207743
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