Yardstick competition, fiscal disparities, and equalization

The theory of political yardstick competition states that a comparison of public service levels and tax rates with those in nearby jurisdictions can provide voters with a useful instrument to assess politicians’ performance. However, we argue that fiscal disparities bias this yardstick, and that this bias may be removed through fiscal equalization.

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Year of publication:	2012
Authors:	Allers, Maarten A.
Published in:	Economics Letters. - Elsevier, ISSN 0165-1765. - Vol. 117.2012, 1, p. 4-6
Publisher:	Elsevier
Subject:	Yardstick competition \| Fiscal disparities \| Equalization

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Type of publication:	Article
Classification:	D72 - Economic Models of Political Processes: Rent-Seeking, Elections, Legistures, and Voting Behavior ; H77 - Intergovernmental Relations; Federalism
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010580495