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Local autonomy and interregional equality

Author

Listed:
  • Cappelen, Alexander W.

    (Dept. of Economics, University of Oslo)

  • Tungodden, Bertil

    (Norwegian School of Economics and Business Administration and Chr. Michelsen)

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.

Suggested Citation

  • Cappelen, Alexander W. & Tungodden, Bertil, 2004. "Local autonomy and interregional equality," Memorandum 24/2004, Oslo University, Department of Economics.
    • Handle: RePEc:hhs:osloec:2004_024
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    File URL: http://www.sv.uio.no/econ/english/research/unpublished-works/working-papers/pdf-files/2004/Memo-24-2004.pdf
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    References listed on IDEAS

    as
    1. Alexander W. Cappelen & Bertil Tungodden, 2003. "Reward and Responsibility: How Should We be Affected when Others Change their Effort?," Politics, Philosophy & Economics, , vol. 2(2), pages 191-211, June.
    2. Ladd, Helen F. & Yinger, John, 1994. "The Case for Equalizing Aid," National Tax Journal, National Tax Association, vol. 47(1), pages 211-24, March.
    3. Roemer, J.E., 1992. "A Pragmatic Theory of Responsibility for the Egalitarian Planner," Papers 391, California Davis - Institute of Governmental Affairs.
    4. Alexander W. Cappelen & Bertil Tungodden, 2002. "Responsibility and Reward," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 59(1), pages 120-140, February.
    5. 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.
    6. 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.
    7. 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.
    8. Fleurbaey, Marc, 1995. "Equal Opportunity or Equal Social Outcome?," Economics and Philosophy, Cambridge University Press, vol. 11(1), pages 25-55, April.
    9. 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.
    10. 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.
    11. 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.
    12. Oakland, William H., 1994. "Fiscal Equalization: An Empty Box?," National Tax Journal, National Tax Association, vol. 47(1), pages 199-209, March.
    13. 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.
    14. Fleurbaey, Marc, 1995. "Equality and responsibility," European Economic Review, Elsevier, vol. 39(3-4), pages 683-689, April.
    Full references (including those not matched with items on IDEAS)

    Citations

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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. Sayaka Sakoda, 2022. "Estimating economic unfairness in Japan and policies toward fairness," International Journal of Economic Policy Studies, Springer, vol. 16(1), pages 85-111, February.
    4. Sayaka Sakoda, 2020. "Inequalities and Unfair Income Distribution in Japan," World Journal of Applied Economics, WERI-World Economic Research Institute, vol. 6(1), pages 91-98, June.
    5. 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.

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    More about this item

    Keywords

    transfer schemes; foundation grant; power equalization grant; liberal egalitarian principles;
    All these keywords.

    JEL classification:

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

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