Designing Intergovernmental Equalization Transfers with Imperfect Data: Concepts, Practices, and Lessons

Jameson Boex and Jorge Martinez-Vazquez ()
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Jameson Boex: Georgia State University

Chapter Chapter 10 in Fiscal Equalization, 2007, pp 291-343 from Springer

Abstract: Abstract The design of intergovernmental equalization transfer mechanisms, whether as the result of the introduction of a new transfer scheme or as part of the revision of an existing one, is a key element of local government finance reform around the world. While the basic elements and principles of designing intergovernmental fiscal transfer schemes apply universally, less developed and transition countries (LDTCs) often face the additional challenge of designing their transfer mechanisms in the absence of substantial relevant data on local fiscal, demographic, and socio-economic variables. The absence of the necessary data to adequately quantify local equalization grants in an efficient, equitable and transparent manner forms an additional hurdle in the implementation of a sound system of intergovernmental fiscal relations in many developing and transition economies.

Keywords: Local Government; Local Expenditure; Gross Regional Product; Revenue Collection; Fiscal Capacity (search for similar items in EconPapers)
Date: 2007
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Working Paper: Designing Intergovernmental Equalization Transfers with Imperfect Data: Concepts, Practices, and Lessons (2004)
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DOI: 10.1007/978-0-387-48988-9_12

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