Need Equalization transfers and Productive Efficiency of Local Governments
We analyse, with a simple stylized model, the impact of the change of parameters of Need equalization formula for intergovernmental grants on productive efficiency of a local government providing a public service. In our context, this kind of efficiency means producing, at minimum costs and at high quality, a output level at least equal to a minimum standard, fixed by the central government for pursuing horizontal equity among jurisdictions.
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- Duc Hong Vo, 2010. "The Economics Of Fiscal Decentralization," Journal of Economic Surveys, Wiley Blackwell, vol. 24(4), pages 657-679, 09.
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