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Intergovernmental equalization grants: some fundamental principles

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Author Info
Breton, Albert ()
Fraschini, Angela ()

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Abstract

Propositions related to intergovernmental equalization grants are always implicitly or explicitly derived from one model of government or another. The paper assumes that governments are competitive organisms. In such a frame of reference, equalization payments serve to insure that all the units in a decentralized governmental system have a chance to share in the benefits of competition. In other words, equalization payments are stabilization instruments. As such they will generally have an effect on the interpersonal distribution of income, but they are not motivated by that effect. The paper also argues that economic globalization increases the need for equalization grants.

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Paper provided by Department of Public Policy and Public Choice - POLIS in its series P.O.L.I.S. department's Working Papers with number 39.

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Length: 24 pages
Date of creation: Sep 2004
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Handle: RePEc:uca:ucapdv:39

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H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bissey, Marie-Edith & Canegallo, Claudia & Ortona, Guido & Scacciati, Francesco, 2003. "Competition vs. Cooperation. An Experimental Inquiry," P.O.L.I.S. department's Working Papers 37, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  2. Levaggi, Rosella & Zanola, Roberto, 2000. "The Flypaper Effect: Evidence from the Italian National Health System," P.O.L.I.S. department's Working Papers 10, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  3. Montrucchio, Luigi & Privileggi, Fabio, 1999. "On Fragility of Bubbles in Equilibrium Asset Pricing Models of Lucas-Type," P.O.L.I.S. department's Working Papers 5, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
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  4. Locatelli-Biey, Marilena & Zanola, Roberto, 2000. "The Market for Sculptures: an Adjacent Year Regression Index," P.O.L.I.S. department's Working Papers 14, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  5. Bondonio, Daniele, 2002. "Evaluating the Employment Impact of Business Incentive Programs in EU Disadvantaged Areas. A case from Northern Italy," P.O.L.I.S. department's Working Papers 27, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  6. Bondonio, Daniele, 2001. "Evaluating Decentralized Policies: How to Compare the Performance of Economic Development Programs across Different Regions or States," P.O.L.I.S. department's Working Papers 16, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  7. Bissey, Marie-Edith & Ortona, Guido, 2002. "A simulative frame to study the integration of defectors in a cooperative setting," P.O.L.I.S. department's Working Papers 24, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  8. Amisano, Franco, 2002. "La corruzione amministrativa in una burocrazia di tipo concorrenziale: modelli di analisi economica," P.O.L.I.S. department's Working Papers 29, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  9. Marie-Edith Bissey & Mauro Carini & Guido Ortona, 2004. "ALEX3: a Simulation Program to Compare Electoral Systems," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 7. [Downloadable!]
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  10. Marchese, Carla & Privileggi, Fabio, 2001. "Who participates in tax amnesties? Self-selection of risk-averse taxpayers," P.O.L.I.S. department's Working Papers 21, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  11. Cassone, Alberto & Marchese, Carla, 2001. "Einaudi e i servizi pubblici, ovvero come contrastare i monopolisti predoni e la burocrazia corrotta," P.O.L.I.S. department's Working Papers 17, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  12. Cassone, Alberto & Marchese, Carla, 2001. "Should the death tax die? And should it leave an inheritance?," P.O.L.I.S. department's Working Papers 22, Department of Public Policy and Public Choice - POLIS. [Downloadable!]
  13. Mario Ferrero, 2005. "Radicalization as a reaction to failure: An economic model of Islamic extremism," Public Choice, Springer, vol. 122(1), pages 199-220, January. [Downloadable!] (restricted)
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  1. Chakraborty, Lekha S., 2006. "Fiscal decentralisation and local level gender responsive budgeting in Philippines: An empirical analysis," Working Papers 06/41, National Institute of Public Finance and Policy. [Downloadable!]
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