Cappelen , Alexander W. () (Dept. of Economics, University of Oslo) Tungodden, Bertil () (Norwegian School of Economics and Business Administration and Chr. Michelsen)
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This paper shows how two important interregional transfer schemes,the foundation grant and the power equalization grant, can be seen as two different interpretations of equal opportunity ethics. It provides characterizations of both transfer schemes by the use of basic liberal egalitarian principles. Both the foundation grant and the power equalization grant scheme make use of specific reference levels. The paper also shows how reasonable requirements on the transfer schemes restrict the set of possible reference levels.
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Paper provided by Oslo University, Department of Economics in its series Memorandum with number
24/2004.
Find related papers by JEL classification: E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
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