scholarly journals A FISCAL FEDERALISM APPROACH TO OPTIMAL TAXATION AND INTERGOVERNMENTAL TRANSFERS IN A DYNAMIC MODEL

2003 ◽  
pp. 156-178
Author(s):  
LIUTANG GONG ◽  
HENG-FU ZOU
Keyword(s):  
Dynamic Model ◽  
Fiscal Federalism ◽  
Optimal Taxation ◽  
Intergovernmental Transfers

scholarly journals Political Economy of Discretionary Transfers: A Dynamic Panel Data analysis of Indian States

2018 ◽  
Vol 5 (01) ◽  
Author(s):  
Chittaranjan Nayak ◽  
. PriyabrataSatpathy
Keyword(s):  
Political Economy ◽  
Panel Data ◽  
Fiscal Federalism ◽  
Panel Data Analysis ◽  
Dynamic Panel Data ◽  
Intergovernmental Transfers ◽  
Estimation Model ◽  
Indian States ◽  
Data Set ◽  
National Governments

Intergovernmental transfers are a major instrument to ensure smooth functioning of ‘Fiscal federalism’ in India. But the mechanism of Central transfers in India seems to be confusing and overlapping. Although a formula-based practice has been mandated by the Indian Constitution, there are several breaks in the practice. While predetermined formulas are used for some transfers, there is considerable discretion in allocating other classes of transfers. This paper makes an attempt to focus on the determinants that influence the quantum of discretionary transfer to sub-national governments from a political economy perspective. Taking a panel data set of 28 states for the period 2001 to 2011, and by using Arrellana-Bover (1995)/ Blundell-Bond (1998) system estimation model, the paper observes that the chosen variables do explain disparity in Central fund disbursement under non formulaic discretionary head in a robust way. The study has analysed the results separately for SCS and NSCS and in combine. The findings of the study reveal that the chosen variables have different outcomes for SCS and NSCS. However, when SCS and NSCS states are combined, the variables like fiscal capacity, fiscal performance and coalition status are found to be significant.

A dynamic model of shirking and unemployment: Private saving, public debt, and optimal taxation

2010 ◽  
Vol 34 (8) ◽  
pp. 1392-1402 ◽  
Author(s):  
Richard A. Brecher ◽  
Zhiqi Chen ◽  
Ehsan U. Choudhri
Keyword(s):  
Dynamic Model ◽  
Public Debt ◽  
Optimal Taxation ◽  
Private Saving

scholarly journals Structural Shifts in the Treatment of Intergovernmental Aid: The Case of Rural Roads

1995 ◽  
Vol 27 (2) ◽  
pp. 522-535 ◽  
Author(s):  
Steven C. Deller ◽  
Norman Walzer
Keyword(s):  
Dynamic Model ◽  
Fiscal Federalism ◽  
State Aid ◽  
Federal Aid ◽  
Public Officials ◽  
Rural Roads ◽  
Rural Counties ◽  
Structural Shifts ◽  
Local Road

AbstractThe effects of structural shifts in the treatment of intergovernmental aid during the 1980s are tested using a sample of 1,929 rural counties with local road responsibilities. A dynamic model is used to test the hypothesis that local public officials treated intergovernmental aid differently after the Reagan/Bush policy of Fiscal Federalism was implemented. Empirical findings from the dynamic model are that Federal aid was much more stimulative at the end of the decade than in earlier years but the effects of state aid remained the same throughout the 1980s. These differences are attributed to a perception that Federal aid is less certain and more transitory than permanent.

scholarly journals Reviving Leviathan: Fiscal Federalism and the Growth of Government

2003 ◽  
Vol 57 (4) ◽  
pp. 695-729 ◽  
Author(s):  
Jonathan Rodden
Keyword(s):  
Government Spending ◽  
Tax Competition ◽  
Local Governments ◽  
Fiscal Federalism ◽  
Fiscal Decentralization ◽  
Public Expenditures ◽  
Intergovernmental Transfers ◽  
Tax Base ◽  
Local Taxation ◽  
State And Local

AbstractThis article revisits the influential “Leviathan” hypothesis, which posits that tax competition limits the growth of government spending in decentralized countries. I use panel data to examine the effect of fiscal decentralization over time within countries, attempting to distinguish between decentralization that is funded by intergovernmental transfers and local taxation. First, I explore the logic whereby decentralization should restrict government spending if state and local governments have wide-ranging authority to set the tax base and rate, especially on mobile assets. In countries where this is most clearly the case, decentralization is associated with smaller government. Second, consistent with theoretical arguments drawn from welfare economics and positive political economy, I show that governments grow faster as they fund a greater portion of public expenditures through intergovernmental transfers.

scholarly journals Regional Tax Autonomy and Budget Balances

2020 ◽  
Vol 12 (5) ◽  
pp. 114-127
Author(s):  
B.I. Alekhin ◽  
Keyword(s):  
Panel Data ◽  
Dynamic Model ◽  
Russian Federation ◽  
Method Of Moments ◽  
Fiscal Federalism ◽  
Generalized Method Of Moments ◽  
Property Taxes ◽  
Budget Balance ◽  
Tax Autonomy ◽  
The Russian Federation

The purpose of this study is to test the proposition that better regional fiscal balances are associated with stronger regional tax autonomy as measured by the ratio of property taxes to expenditures. The study uses panel data for 82 subjects of the Russian Federation over 14 years (2005–2018). A two-step dynamic model of budget balance is estimated by the “system” generalized method of moments. A positive and statistically significant association between fiscal balances and tax autonomy is established. This study emphasizes the importance of regional tax autonomy for the development of market-preserving fiscal federalism in Russia.

scholarly journals The Impact of Intergovernmental Transfers on Fiscal Behaviour of Local Governments in Ethiopia

2020 ◽  
Author(s):  
Bekana Dejene Mamo
Keyword(s):  
Local Governments ◽  
Fiscal Federalism ◽  
Central Government ◽  
State Level ◽  
Intergovernmental Transfers ◽  
Transfer Scheme ◽  
Government Grants ◽  
Revenue Collection ◽  
Political Hierarchy ◽  
The Impact

This paper examines the effect of intergovernmental fiscal transfers on the fiscal behaviour of local governments in Ethiopia for the period 2004-2018. The empirical findings suggest that central government grants bolster state-level employment and expenditure. However, grants from the central government to states do not crowd out state-level revenue collection. Hence, this paper argues that fiscal decentralisation in Ethiopia has mostly, at least in theory, taken the form of devolution of the power to tax and spend public money. However, on average state-level revenue can only finance up to 26 per cent of their annual expenditure. As a result, fiscal federalism in Ethiopia appears to be a form of delegation of spending responsibilities. It has to be considered in the context of a decentralised tax system, but with a transfer scheme and political hierarchy. The results are found to be robust to alternative econometric estimation techniques.

scholarly journals ANÁLISE DAS RELAÇÕES INTERGOVERNAMENTAIS ENTRE ESTADOS E MUNICÍPIOS ATRAVÉS DA CONSTRUÇÃO DE UMA TIPOLOGIA DE MUNICÍPIOS: o caso da Lei Robin Hood em Minas Gerais

2014 ◽  
Vol 18 (1) ◽  
pp. 71
Author(s):  
Jane Noronha Carvalhais ◽  
Elisa Maria Pinto da Rocha
Keyword(s):  
Fiscal Federalism ◽  
Intergovernmental Relations ◽  
Life Quality ◽  
Minas Gerais ◽  
Quadrant Analysis ◽  
Intergovernmental Transfers ◽  
Poverty Level ◽  
Robin Hood ◽  
Local Resources ◽  
The Rich

O artigo toma como referência a Lei Robin Hood, que tem como objetivo a melhoria da qualidade de vida da população mineira através da descentralização da distribuição da cota-parte do ICMS, da desconcentração da renda, da alocação de recursos locais em áreas sociais, do aumento da arrecadação, da eficiência do gasto público local e da criação de uma parceria entre estado e municípios.Questiona se a referida LRH estaria alcançando tais objetivos além das pesquisas bibliográfica e documental, utiliza o Método de Análise por Quadrantes para construir tipologias de municípios segundo nível de pobreza e o montante de recursos transferidos. Constata, ainda, que os resultados demonstram que critérios com baixa capacidade redistributiva ou concentradores apresentam pesos relativamente elevados, que municípios pobres receberam montantes comparativamente pequenos e os mais ricos foram beneficiadas com transferências expressivas. Conclui que, apesar de representar um avanço, a Lei demanda aprimoramentos que permitam minimizar a elevada heterogeneidade socioeconômica que caracteriza os municípios mineiros.Palavras-chave: Federalismo; federalismo fiscal; transferências intergovernamentais; Lei Robin Hood; Minas GeraisANALYSIS OF INTERGOVERNMENTAL RELATIONS BETWEEN STATES AND CITIES THROUGH THECONSTRUCTION OF A TYPOLOGY OF COUNTIES: the case of Law Robin Hood in Minas GeraisAbstract: The article take as reference the Robin Hood Law (RHL) that has as goal the improvement of life quality of Minas Gerais population through ICMS quote-part distribution decentralization, income deconcentration, allocation of local resources in social areas, increase in taxes, efficiency of local public expenditure, and creation of a partnership between state and counties. It asks if RHL would be reaching those goals, in addition to bibliographic and documental research, Quadrant Analysis Method is used to build counties typology according to poverty level and resources transferred. It also notes that the results show that criteria with low redistributive capacity or concentrators have relatively high weight, that poor counties get smaller amounts than the rich ones. It concludes that although RHL represents a step forward, it also needs improvements for minimizing the high socioeconomic heterogeneity typical of Minas Gerais counties.Keywords: Federalism, fiscal federalism, intergovernmental transfers, Robin Hood Law, Minas Gerais.

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