Closing the Gap: Fiscal Imbalaces and Intergovernmental Transfers in Developed Federations
This paper discusses the concepts of vertical fiscal imbalance (the fiscal gap) and horizontal fiscal imbalance (equalization) and uses several statistics to measure these concepts for eight industrially developed federations: Australia, Austria, Belgium, Canada, Germany, Spain, Switzerland, and the United States. Although the periods covered and the detail provided vary from country to country due to limitations in data availability, the overall coverage in this paper seems more complete and comparable than in previous studies. The paper also outlines briefly the types of intergovernmental fiscal transfers used to deal with fiscal imbalances in the eight countries under consideration. Although this account is necessarily highly condensed, given the complexity of transfer systems in most countries, the frequency with which changes are made, and the difficulty of obtaining complete information, it is nonetheless broadly accurate.
|Date of creation:||01 Mar 2002|
|Date of revision:|
|Contact details of provider:|| Phone: 404-413-0235|
Web page: http://aysps.gsu.edu/isp/index.html
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.:
- Antoni Castells, 2001. "The role of intergovernmental finance in achieving diversity and cohesion: the case of Spain," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 19(2), pages 189-206, April.
- Teresa Garcia-MilÃ & Therese J. McGuire, 2007.
"Fiscal Decentralization in Spain: An Asymmetric Transition to Democracy,"
in: Fiscal Fragmentation in Decentralized Countries, chapter 7
Edward Elgar Publishing.
- Teresa Garcia-Milà & Therese J. McGuire, 2002. "Fiscal decentralization in Spain: An asymmetric transition to democracy," Economics Working Papers 866, Department of Economics and Business, Universitat Pompeu Fabra.
- Richard M Bird & FranÃ§ois Vaillancourt, 2001.
"Fiscal Arrangements for Maintaining an Effective State in Canada,"
Environment and Planning C,
SAGE Publishing, vol. 19(2), pages 163-187, April.
- Richard M Bird & François Vaillancourt, 2001. "Fiscal arrangements for maintaining an effective state in Canada," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 19(2), pages 163-187, April.
- Bird, Richard, 2010.
"Taxation and Development,"
World Bank - Economic Premise,
The World Bank, issue 34, pages 1-5, September.
- Paul Bernd Spahn & Jan Werner, 2007. "Germany at the Junction Between Solidarity and Subsidiarity," Chapters, in: Fiscal Fragmentation in Decentralized Countries, chapter 4 Edward Elgar Publishing.
- Bernd Huber & Christian Baretti & Karl Lichtblau, 2000. "A Tax on Tax Revenue. The Incentive Effects of Equalizing Transfers: Evidence from Germany," CESifo Working Paper Series 333, CESifo Group Munich.
- Antoni Castells, 2001. "The Role of Intergovernmental Finance in Achieving Diversity and Cohesion: The Case of Spain," Environment and Planning C, SAGE Publishing, vol. 19(2), pages 189-206, April.
- Brennan,Geoffrey & Buchanan,James M., 2006.
"The Power to Tax,"
Cambridge University Press, number 9780521027922, September.
- Walter Hettich & Stanley L. Winer, 1986. "Vertical Imbalance in the Fiscal Systems of Federal States," Canadian Journal of Economics, Canadian Economics Association, vol. 19(4), pages 745-65, November.
- M G Rao & A Das-Gupta, 1995. "Intergovernmental transfers and poverty alleviation," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 13(1), pages 1-23, February.
- Ebel, Robert D. & Yilmaz, Serdar, 2002. "On the measurement and impact of fiscal decentralization," Policy Research Working Paper Series 2809, The World Bank.
- Richard A. Musgrave, 1961. "Approaches to a Fiscal Theory of Political Federalism," NBER Chapters, in: Public Finances: Needs, Sources, and Utilization, pages 97-134 National Bureau of Economic Research, Inc.
- Shankar, Raja & Shah, Anwar, 2003. "Bridging the Economic Divide Within Countries: A Scorecard on the Performance of Regional Policies in Reducing Regional Income Disparities," World Development, Elsevier, vol. 31(8), pages 1421-1441, August.
- Bird, Richard M., 1993. "Threading the Fiscal Labyrinth: Some Issues in Fiscal Decentralization," National Tax Journal, National Tax Association, vol. 46(2), pages 207-27, June.
When requesting a correction, please mention this item's handle: RePEc:ays:ispwps:paper0202. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Paul Benson)
If references are entirely missing, you can add them using this form.