Need Equalization transfers and Productive Efficiency of Local Governments

Alessandro Petretto ()

Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa

Abstract: We analyse, with a simple stylized model, the impact of the change of parameters of Need equalization formula for intergovernmental grants on productive efficiency of a local government providing a public service. In our context, this kind of efficiency means producing, at minimum costs and at high quality, a output level at least equal to a minimum standard, fixed by the central government for pursuing horizontal equity among jurisdictions.

Keywords: Need Equalization; local public services provision; quality and costefficiency (search for similar items in EconPapers)
JEL-codes: H70 H72 H77 (search for similar items in EconPapers)
Pages: 23 pages
Date: 2010
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Related works:
Journal Article: Need Equalization Transfers and Productive Efficiency of Local Governments (2013)
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