Intergovernmental Transfers: The Funding Rule and Mechanisms

Paul Spahn

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: The paper categorizes different types of intergovernmental transfers, discusses the funding rule of grants, and outlines some principles for setting up transfer allocation mechanisms that respect hard budget constraints at the macroeconomic level. The mechanics of a neutral transfer scheme aiming at budget equalization is sketched using data for a fictional developing country, Krakozhia, which aims at implementing an incentive compatible methodology for allocating transfers to its provinces.

Keywords: Intergovernmental fiscal relations; transfers; grants; decentralization; equalization (search for similar items in EconPapers)
Pages: 39 pages
Date: 2004-11-01
New Economics Papers: this item is included in nep-ure
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http://icepp.gsu.edu/files/2015/03/ispwp0417.pdf (application/pdf)

Related works:
Chapter: Intergovernmental Transfers: The Funding Rule and Mechanisms (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper0417

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