Resource title

Fiscal equalization and yardstick competition

Resource image

image for OpenScout resource :: Fiscal equalization and yardstick competition

Resource description

A multi-jurisdictional system is thought to improve, through yardstick competition, accountability. At the same time equalization programs, a common feature of multijurisdictional systems, are thought to be a prerequisite for both efficiency of the internal market and the equity objective of the equal treatment of equals. This paper shows that such programs, by reducing the information context of comparisons across jurisdictions, introduce perverse fiscal incentives and thus reduce accountability. The consequence of this is that equilibrium rent-taking increases with the intensity of equalization transfers.

Resource author

Christos Kotsogiannis, Robert Schwager

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/25910

Resource license

Adapt according to the presented license agreement and reference the original author.