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Local autonomy and interregional equality : fiscal equalization with balanced budgets

Cappelen, Alexander W.; Tungodden, Bertil
Working paper
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URI
http://hdl.handle.net/11250/163000
Date
2003-07
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  • Discussion papers (SAM) [607]
Abstract
This paper contributes to the literature on fiscal equalization in

three ways. First, it shows how two important types of transfer

schemes, the foundation grant and the power equalization grant, can

be seen as two different interpretations of equal opportunity ethics.

Second, it characterizes versions of these transfers schemes that ensure

a balanced budget for the central government. Third, it clarifies

the nature of various fiscal spillover effects within the framework of balanced budgets.
Publisher
Norwegian School of Economics and Business Administration. Department of Economics
Series
Discussion paper
2002:24

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