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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

Suggested Citation

  • Alex Christie & J. Kim Swales, 2010. "The Barnett Allocation Mechanism: Formula Plus Influence?," Regional Studies, Taylor & Francis Journals, vol. 44(6), pages 761-775.
    • Handle: RePEc:taf:regstd:v:44:y:2010:i:6:p:761-775
    DOI: 10.1080/00343400903107710
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    References listed on IDEAS

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    1. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422.
    2. James Gallagher & Daniel Hinze, "undated". "Financing Options for Devolved Government in the UK," Working Papers 2005_24, Business School - Economics, University of Glasgow.
    3. Ken Binmore, 1994. "Game Theory and the Social Contract, Volume 1: Playing Fair," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262023636, December.
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    Cited by:

    1. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2010. "The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Welsh Economy: Homogeneity or Heterogeneity?," Working Papers 1027, University of Strathclyde Business School, Department of Economics.
    2. Soo Ha & J. Swales, 2012. "The export-base model with a supply-side stimulus to the export sector," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 49(2), pages 323-353, October.
    3. Hermannsson, Kristinn & Lisenkova, Katerina & McGregor, Peter G & Swales, J Kim, 2010. "The Expenditure Impacts of London-based Individual Higher Education Institutions (HEIs) and their Students on the Economy of England: Homogeneity or Heterogeneity?," SIRE Discussion Papers 2010-106, Scottish Institute for Research in Economics (SIRE).
    4. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2011. "The Expendi ture Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Northern Irish Economy: Homogeneity or Heterogeneity?," Working Papers 1103, University of Strathclyde Business School, Department of Economics.
    5. 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.
    6. Rob Ball & David King & David Eiser, 2012. "Assessing the Relative Health Care Spending Needs of the UK's Devolved Territories: A Scottish Perspective," Environment and Planning C, , vol. 30(2), pages 322-346, April.
    7. Patrizio Lecca & Peter McGregor & Kim Swales & Ya Ping Yin, 2010. "Inverted Haavelmo Effects in a General Equilibrium Analysis of the Impact of Implementing the Scottish Variable Rate of Income Tax," Working Papers 1013, University of Strathclyde Business School, Department of Economics.
    8. Rob Ball & David Eiser & David King, 2015. "Assessing Relative Spending Needs of Devolved Government: The Case of Healthcare Spending in the UK," Regional Studies, Taylor & Francis Journals, vol. 49(2), pages 323-336, February.
    9. Kristinn Hermannsson & Katerina Lisenkova & Peter McGregor & Kim Swales, 2010. "The Expenditure Impacts of Individual Higher Education Institutions (HEIs) and their Students on the Scottish Economy under Devolution: Homogeneity or Heterogeneity?," Working Papers 1016, University of Strathclyde Business School, Department of Economics.
    10. Kristinn Hermannsson & Katerina Lisenkova & Peter G McGregor & J Kim Swales, 2013. "The Expenditure Impacts of Individual Higher Education Institutions and Their Students on the Scottish Economy under a Regional Government Budget Constraint: Homogeneity or Heterogeneity?," Environment and Planning A, , vol. 45(3), pages 710-727, March.
    11. Alex Christie & Kim Swales, 2006. "The Efficiency of Decentralised and Devolved Government: A Framework," ERSA conference papers ersa06p533, European Regional Science Association.
    12. Katerina Lisenkova, 2020. "Growth incentives and devolved fiscal systems," Working Papers 2009, University of Strathclyde Business School, Department of Economics.

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