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The Barnett Allocation Mechanism: Formula Plus Influence?

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  • Alex Christie
  • J. Kim Swales

Abstract

Christie A. and Swales J. K. The Barnett allocation mechanism: formula plus influence?, Regional Studies. This paper seeks to explain why the operation of the Barnett formula has failed to generate convergence in the per capita public expenditure levels in the four countries of the United Kingdom. Using Scotland as an example, this paper argues that a 'formula plus influence' allocation mechanism has been in place. This offers improved flexibility, greater political integration, and increased information flows than would be available through either a straight bargaining or a formula process. While devolution has not changed the Barnett formula, it has altered the environment in which it operates and that this may well destabilize an otherwise secure system. [image omitted] Christie A. et Swales J. K. La methode d'affectation Barnett: formule plus influence?, Regional Studies. Cet article cherche a expliquer pourquoi l'application de la formule Barnett n'a pas reussi la convergence des depenses publiques par tete dans les quatre pays du R-U. En se servant de l'Ecosse comme etude de cas, l'article affirme qu'une methode d'affectation 'formule plus influence' a ete en vigueur. Cela fournit une flexibilite augmentee, une integration politique plus importante et des flux d'information accrus qui n'auraient ete disponibles par moyen de simples negociations ou d'une simple formule. Tandis que la regionalisation n'a eu aucun impact sur la formule Barnett, elle a change le milieu auquel il se voit appliquer, et cela pourrait bien destabiliser un systeme par ailleurs solide. Formule Barnett Regionalisation Decentralisation fiscale Ecosse Finances publiques Christie A. and Swales J. K. Der Barnett-Zuweisungsmechanismus: Formel plus Einfluss?, Regional Studies. In diesem Beitrag wird eine Erklarung fur die Frage gesucht, warum sich mit der Barnett-Formel in den vier Landern des Vereinigten Konigreichs keine Konvergenz hinsichtlich der Hohe der offentlichen Pro-Kopf-Ausgaben erzielen lasst. Anhand des Beispiels Schottland wird argumentiert, dass bei der Zuweisung ein Mechanismus von der Art 'Formel plus Einfluss' zum Einsatz kam. Dies fuhrt im Vergleich zu einem einfachen Verhandlungs- oder Formelprozess zu einer Verbesserung der Flexibilitat, der politischen Integration und des Informationsflusses. Die Dezentralisierung hat die Barnett-Formel nicht verandert, wohl aber die Umgebung, in der sie zum Einsatz kommt, was durchaus zur Destabilisierung eines ansonsten sicheren Systems fuhren kann. Barnett-Formel Dezentralisierung Fiskale Dezentralisierung Schottland Staatsfinanzen Christie A. y Swales J. K. El mecanismo de la asignacion Barnett: �formula mas influencia?, Regional Studies. El objetivo de este articulo es explicar el porque la operacion de la formula Barnett no ha generado una convergencia en los niveles de gastos publicos per capita en las cuatro regiones del Reino Unido. Usando Escocia como ejemplo, en este ensayo argumentamos que se ha introducido un mecanismo de asignacion tipo 'formula mas influencia'. Esto ofrece una mejor flexibilidad, mayor integracion politica y mas flujos de informacion comparado con un proceso a traves de negociaciones directas o de formulas. Aunque la transferencia de competencias no ha cambiado la formula Barnett, si que ha alterado el entorno en el que funciona y esto bien podria desestabilizar un sistema que normalmente es seguro. Formula Barnett Transferencia de competencias Descentralizacion fiscal Escocia Finanzas publicas

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 44 (2010)
Issue (Month): 6 ()
Pages: 761-775

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Handle: RePEc:taf:regstd:v:44:y:2010:i:6:p:761-775

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Related research

Keywords: Barnett formula; Devolution; Fiscal decentralization; Scotland; Public finance;

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Cited by:
  1. Soo Jung Ha & Kim Swales, 2010. "The Export Base Model with a Supply-Side Stimulus to the Export Sector," Working Papers 1006, University of Strathclyde Business School, Department of Economics.
  2. Alex Christie & Kim Swales, 2006. "The Efficiency of Decentralised and Devolved Government: A Framework," ERSA conference papers ersa06p533, European Regional Science Association.
  3. Kristinn Hermannsson & Peter G McGregor & J Kim Swales, 2013. "Consumption expenditures in economic impact studies: an application to university students," Working Papers 1314, University of Strathclyde Business School, Department of Economics.

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