Fiscal Equalisation: Some Questions of Design
AbstractThe case for fiscal equalisation can arise because of differences between states' average incomes or populations. In this paper, we examine the latter in a simple case, using different formulations of the social welfare function: Benthamite; Rawlsian; and Nash. We distinguish, in the process, two different understandings of efficiency abroad in economics — a Paretian notion, that is irrelevant to the case in hand; and a quasi-utilitarian sense. We conclude that fiscal equalisation is required only in the Rawlsian case. In all other cases, private goods consumption should be equalised — but no fiscal equalisation is required.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by SIPI Spa in its journal Rivista di Politica Economica.
Volume (Year): 94 (2004)
Issue (Month): 4 (July-August)
Contact details of provider:
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabrina Marino).
If references are entirely missing, you can add them using this form.