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Title: | A political economy model of the vertical fiscal gap and vertical fiscal imbalances in a federation |
Author: | Dahlby, Bev Rodden, Jonathan |
Keywords: | Política fiscal Federalisme Anàlisi econòmica Fiscal policy Federalism Economic analysis |
Issue Date: | 2013 |
Publisher: | Institut d’Economia de Barcelona |
Series/Report no: | [WP E-IEB13/18] |
Abstract: | We develop a political economy model of intergovernmental transfers. Vertical fiscal balance occurs in a federation when the ratio of the marginal benefit of the public services provided by the federal and provincial governments is equal to their relative marginal costs of production. With majority voting in national elections, the residents of a "pivotal province" will determine the level of transfers such that the residents of that province achieve a vertical fiscal balance in spending by the two levels of government. We test the predictions of the model using Canadian time series data and cross-section data for nine federations. |
Note: | Reproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions |
It is part of: | IEB Working Paper 2013/18 |
URI: | http://hdl.handle.net/2445/115886 |
Appears in Collections: | IEB (Institut d’Economia de Barcelona) – Working Papers |
Files in This Item:
File | Description | Size | Format | |
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IEB13-18_Dahlby.pdf | 851.56 kB | Adobe PDF | View/Open |
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