Dynamic Horizontal and Vertical Equity in Intergovernmental Transfers
This paper shows that actual systems of intergovernmental transfers are incompletely specified when viewed as mechanisms that operate over time, and that the norms of evolution most frequently used do not preserve the distributive properties they have at their initial position. We argue that this problem is solved if these systems are completed with a dynamic condition of vertical equity based on the same economic premises that underlie their static specification. This gives rise to a new norm of evolution that over time preserves both Horizontal Equity and Vertical Equity: the HEAVE norm.
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- Robin Boadway, 2004. "Should the Canadian Federation be Rebalanced?," University of Western Ontario, Economic Policy Research Institute Working Papers 20041, University of Western Ontario, Economic Policy Research Institute.
- Angel de la Fuente & MarÌa GundÌn, "undated". "El sistema de financiaciÛn de las comunidades autÛnomas de rÈgimen com˙n: un an·lisis crÌtico y algunas propuestas de reforma," Studies on the Spanish Economy 236, FEDEA.
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