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Public Finance And Regional Accounts

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  • Edwin F. Terry

Abstract

This paper discusses the problems that arise in the regional allocation of public sector accounts. These problems arise mainly in connection with the regional allocation of government expenditures on a governing rather than a procurement basis, and in the derivation of a meaningful surplus or deficit. The latter in turn requires an examination of the real geographic incidence of government revenues—to avoid, for instance, the assignment of the whole tobacco tax to Virginia and North Carolina. The use of a procurement basis for government product and the real geographic distribution of direct tax incidence for government revenue would produce a more complete and meaningful regional surplus or deficit measure, and gross regional products will not be as subject to spurious inter‐regional variation.

Suggested Citation

  • Edwin F. Terry, 1969. "Public Finance And Regional Accounts," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 15(2), pages 209-213, June.
    • Handle: RePEc:bla:revinw:v:15:y:1969:i:2:p:209-213
    DOI: 10.1111/j.1475-4991.1969.tb00804.x
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