The design of intergovernmental equalization transfer mechanisms, whether as the result of the introduction of a new transfer scheme or as part of the revision of an existing one, is a key element of local government finance reform around the world. While the basic elements and principles of...

Romania has been actively reforming its intergovernmental transfer system during the last years. The new Law on Local Public Finance, which will come into force in January 2007, will involve substantial modifications both to the institutional arrangements and to the formula employed to...

In 1994 in its push toward the establishment of a market economy, China introduced a fundamental reform of its tax and intergovernmental fiscal relations systems, which became known as the "tax-sharing system" or TSS reform. The fundamental goal of the TSS reform was to improve the behavior of...

Normative theories of fiscal federalism postulate that intergovernmental transfers should be determined by equity and efficiency considerations, to support local governments in providing differentiated public goods to heterogeneous populations, while ensuring an even distribution of basic...

Intergovernmental transfers are a major source of revenue for sub-national (regional and local) governments (hereafter SNG), representing 60 percent of their total revenue for developing countries and 33 percent for OECD countries (Shah, 2004). The continued and even growing decentralization...