Comparative analysis of optimal conditional transfers in a fiscally centralized federation

The international evidence shows that the spending of sub-national governments depends on unconditional transfers from the central government. This evidence makes relevant the following question: What is the optimal design of inter-governmental transfers? In this article we provide an answer to this...

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Detalles Bibliográficos
Autores: Jose Carrillo, Raúl Alberto Ponce Rodríguez
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2021
País:México
Institución:Universidad Autónoma de Ciudad Juárez
Repositorio:Repositorio Institucional de la Universidad Autónoma de Ciudad Juárez
Idioma:español
OAI Identifier:oai:uacj.mx:oai:oai:erevistas.uacj.mx:article-253
Acceso en línea:http://erevistas.uacj.mx/ojs/index.php/noesis/article/view/253
Access Level:acceso abierto
Palabra clave:Fiscal federalism
intergovernmental transfers
tradeoff between efficiency and equity
Federalismo fiscal
transferencias intergubernamentales
intercambio entre eficiencia y equidad
CIENCIAS SOCIALES
info:eu-repo/classification/cti/5
Descripción
Sumario:The international evidence shows that the spending of sub-national governments depends on unconditional transfers from the central government. This evidence makes relevant the following question: What is the optimal design of inter-governmental transfers? In this article we provide an answer to this question. The main contribution of this article is the characterization of optimal unconditional intergovernmental transfers. We also contribute to the literature, by providing empirically verifiable hypotheses on how the federal transfers from the central government depend on the interregional inequality of income, the distribution and magnitude of interregional spillovers of sub-national expenditures, and the deadweight labor costs associated with taxation and intergovernmental transfers.