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Assignment of powers and number of states in Federal Philippines Discussion paper on federalizing Philippines

Author

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  • Tamayo, Adrian

Abstract

This paper argues that the number of states or regional units the Philippine should have when it will federalize the country must be limited to 5. This claim meets the Samuelsonian principle of welfare theorem where marginal social cost is equal to marginal social benefit. The paper also argues that the states or regional governments should have the limited to earn revenue through taxing powers which will be used to spend for government operations. In this manner, efficiency is achieved and control of the federal government on the affairs of the states and regional governments is limited primarily to transfers through equalization parameters.

Suggested Citation

  • Tamayo, Adrian, 2017. "Assignment of powers and number of states in Federal Philippines Discussion paper on federalizing Philippines," MPRA Paper 79545, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:79545
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    File URL: https://mpra.ub.uni-muenchen.de/79545/1/MPRA_paper_79545.pdf
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    References listed on IDEAS

    as
    1. Ronald MacDonald & Paul Hallwood, 2004. "The Economic Case for Fiscal Federalism in Scotland," Working papers 2004-42, University of Connecticut, Department of Economics.
    2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    3. Prakash Chandra, Jha, 2012. "Theory of Fiscal Federalism: An Analysis," MPRA Paper 41769, University Library of Munich, Germany, revised 06 Oct 2012.
    4. Robert P. Inman & Daniel L. Rubinfeld, 1997. "Rethinking Federalism," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 43-64, Fall.
    5. Chipman, John S & Moore, James C, 1980. "Compensating Variation, Consumer's Surplus, and Welfare," American Economic Review, American Economic Association, vol. 70(5), pages 933-949, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Fiscal powers; Philippine federalism; welfare analysis;
    All these keywords.

    JEL classification:

    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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