This paper looks at a reform proposal for the fiscal transfer system in Germany to take account of differences in governmental purchasing powers across states. Since data on differences in governmental purchasing power is missing for the states, differences in intergovernmental purchasing power...

This paper looks at reform proposals for the fiscal transfer system in Germany to take account of differences in governmental purchasing powers across states, i.e. differences in governmental costs of public goods and services. Since data on differences in governmental purchasing power is...