Assignment of powers and number of states in Federal Philippines Discussion paper on federalizing Philippines

Adrian Tamayo

MPRA Paper from University Library of Munich, Germany

Abstract: This paper argues that the number of states or regional units the Philippine should have when it will federalize the country must be limited to 5. This claim meets the Samuelsonian principle of welfare theorem where marginal social cost is equal to marginal social benefit. The paper also argues that the states or regional governments should have the limited to earn revenue through taxing powers which will be used to spend for government operations. In this manner, efficiency is achieved and control of the federal government on the affairs of the states and regional governments is limited primarily to transfers through equalization parameters.

Keywords: Fiscal powers; Philippine federalism; welfare analysis (search for similar items in EconPapers)
JEL-codes: H3 H30 H72 H75 (search for similar items in EconPapers)
Date: 2017-06-06
New Economics Papers: this item is included in nep-sea and nep-ure
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