Hindriks, Jean (contributor); Peralta, Susana (contributor); … - 2006
equalization grants
discourage public investments with a little effect on equilibrium taxes. However, the
equalization schemes … intergovernmental aid to local governments
(the other consists of categorical grants-in-aid), which is itself the largest element of … equaliza-
tion grants may have perverse fiscal incentives. Namely, local governments are more inclined
to provide market …