A model of regional equalisation transfers under asymmetric information with reference to the spanish regional financing system
This paper considers the design of equalisation transfers in the presence of asymmetric information with respect to the provision cost of regional public output (Adverse selection). To overcome this problem, the central layer of government has to design an optimal incentive-compatible direct co-ordination mechanism. This provokes a distortion in the (optimal) private decisions of the high-cost type governments in order to opt to the transfers. Moreover, both levels of government levy a tax on labour income in such a way that a vertical tax externality also crops out, and affects private decisions of high and low-cost type regions. The model which will infer such results is a preliminary attempt, open to future research, to approximate to the present Spanish situation, and achieve useful recommendations based on economic theory.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1998|
|Date of revision:|
|Contact details of provider:|| Postal: Espai de Recerca en Economia, Facultat de CiÃ¨ncies EconÃ²miques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain.|
Phone: +34 93 402 43 13cazza
Web page: http://www.ere.ub.es
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:bar:bedcje:199826. 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: (Espai de Recerca en Economia)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.