Dynamic Horizontal and Vertical Equity in Intergovernmental Transfers
AbstractThis paper shows that actual systems of intergovernmental transfers are incompletely specified when viewed as mechanisms that operate over time, and that the norms of evolution most frequently used do not preserve the distributive properties they have at their initial position. We argue that this problem is solved if these systems are completed with a dynamic condition of vertical equity based on the same economic premises that underlie their static specification. This gives rise to a new norm of evolution that over time preserves both Horizontal Equity and Vertical Equity: the HEAVE norm.
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Bibliographic InfoPaper provided by International Economics Institute, University of Valencia in its series Working Papers with number 0801.
Length: 29 pages
Date of creation: Feb 2008
Date of revision:
Intergovernmental transfers; dynamic horizontal and vertical equity;
Find related papers by JEL classification:
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
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- Angel de la Fuente & María Gundín, 2008.
"El sistema de financiación de las Comunidades Autónoma de régimen común: Un análisis crítico y algunas propuestas de reforma,"
UFAE and IAE Working Papers
750.08, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Angel de la Fuente & María Gundín, . "El sistema de financiación de las comunidades autónomas de régimen común: un análisis crítico y algunas propuestas de reforma," Studies on the Spanish Economy 236, FEDEA.
- Robin Boadway, 2004. "Should the Canadian Federation be Rebalanced?," University of Western Ontario, Economic Policy Research Institute Working Papers 20041, University of Western Ontario, Economic Policy Research Institute.
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