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Local autonomy and interregional equality

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  • Alexander Cappelen

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  • Bertil Tungodden

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Abstract

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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Suggested Citation

  • Alexander Cappelen & Bertil Tungodden, 2007. "Local autonomy and interregional equality," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 28(3), pages 443-460, April.
  • Handle: RePEc:spr:sochwe:v:28:y:2007:i:3:p:443-460
    DOI: 10.1007/s00355-006-0183-2
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    References listed on IDEAS

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    1. Ladd, Helen F. & Yinger, John, 1994. "The Case for Equalizing Aid," National Tax Journal, National Tax Association, vol. 47(1), pages 211-24, March.
    2. Roemer, J.E., 1992. "A Pragmatic Theory of Responsibility for the Egalitarian Planner," Papers 391, California Davis - Institute of Governmental Affairs.
    3. Alexander W. Cappelen & Bertil Tungodden, 2002. "Responsibility and Reward," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(1), pages 120-120, February.
    4. Bertil Tungodden, 2005. "Responsibility and redistribution: The case of first best taxation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 24(1), pages 33-44, June.
    5. Le Grand, Julian, 1975. "Fiscal Equity and Central Government Grants to Local Authorities," Economic Journal, Royal Economic Society, vol. 85(339), pages 531-547, September.
    6. Mieszkowski, Peter & Musgrave, Richard A., 1999. "Federalism, Grants, and Fiscal Equalization," National Tax Journal, National Tax Association, vol. 52(n. 2), pages 239-60, June.
    7. Fleurbaey, Marc, 1995. "Equal Opportunity or Equal Social Outcome?," Economics and Philosophy, Cambridge University Press, vol. 11(01), pages 25-55, April.
    8. Marc Fleurbaey & Walter Bossert, 1996. "Redistribution and compensation (*)," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 13(3), pages 343-355.
    9. Mieszkowski, Peter & Musgrave, Richard A., 1999. "Federalism, Grants, and Fiscal Equalization," National Tax Journal, National Tax Association;National Tax Journal, vol. 52(2), pages 239-260, June.
    10. Ladd, Helen F. & Yinger, John, 1994. "The Case for Equalizing Aid," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(1), pages 211-224, March.
    11. Oakland, William H., 1994. "Fiscal Equalization: An Empty Box?," National Tax Journal, National Tax Association, vol. 47(1), pages 199-209, March.
    12. Oakland, William H., 1994. "Fiscal Equalization: An Empty Box?," National Tax Journal, National Tax Association;National Tax Journal, vol. 47(1), pages 199-209, March.
    13. Fleurbaey, Marc, 1995. "Equality and responsibility," European Economic Review, Elsevier, vol. 39(3-4), pages 683-689, April.
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    Cited by:

    1. Alexander Cappelen & Bertil Tungodden, 2011. "Distributive interdependencies in liberal egalitarianism," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 36(1), pages 35-47, January.
    2. Audun Langørgen, 2015. "A structural approach for analyzing fiscal equalization," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(3), pages 376-400, June.
    3. Etienne Billette de Villemeur & Justin Leroux, 2011. "Sharing the Cost of Global Warming," Scandinavian Journal of Economics, Wiley Blackwell, vol. 113(4), pages 758-783, December.

    More about this item

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy

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