Open Access BASE2012
A structural approach for analyzing fiscal equalization
Abstract
Many countries apply cost-equalization and/or fiscal capacity equalization formulas to enable sub-national governments to provide comparable service standards at comparable tax rates. This paper demonstrates how measures of expenditure needs and fiscal capacity can be derived from a structural model of local government spending and taxing behavior. The structural parameters are shown to provide the information required to implement equalization according to the principle of horizontal equity.
Themen
Sprachen
Englisch
Verlag
Oslo: Statistics Norway, Research Department
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