Template-type: ReDIF-Paper 1.0
Author-Name: Paul Bernd Spahn
Author-Email:pbspahn@wiwi.uni-frankfurt.de
Title: Intergovernmental Transfers: The Funding Rule and Mechanisms 
Abstract: The paper categorizes different types of intergovernmental transfers, discusses the funding rule of grants,
 and outlines some principles for setting up transfer allocation mechanisms that respect hard budget constraints at
 the macroeconomic level. The mechanics of a neutral transfer scheme aiming at budget equalization is sketched using data
 for a fictional developing country, Krakozhia, which aims at implementing an incentive compatible methodology for
 allocating transfers to its provinces.
Keywords: Intergovernmental fiscal relations, transfers, grants, decentralization, equalization
Length: 39 pages
Creation-Date: 2004-11-01
File-URL:http://icepp.gsu.edu/files/2015/03/ispwp0417.pdf
File-Format:Application/PDF
Handle: RePEc:ays:ispwps:paper0417