This paper discusses the methodology for the calculation of federal fiscal flows in a federation and the measurement of interregional redistribution. It identifies five major steps: (a) the selection of the approach for calculating federal fiscal flows, (b)the allocation of federal revenues and...

The authors discuss the measurement and interpretation problems with Browning's 1993 analysis of the marginal cost of redistribution (MCR) through a linear income tax. They derive a general expression for the social MCR and show that Browning's measure inflates the MCR because (a) he ignores the...

The purpose of this article is twofold: to determine the appropriate treatment of the Abstract indexation of transfer payments in sales tax incidence and to apply the methodolog ical results to measure the incidence of Canada's Manufacturers'Sales Tax (MST). The article argues that, when...

Struggles over what a region receives, or should receive, from the budget of the central government are common to many countries. Discussions often focus on the measures of ‘net fiscal flows’ or ‘fiscal balances’ provided by the government or other actors. This unique...

Struggles over what a region receives, or should receive, from the budget of the central government are common to many countries. Discussions often focus on the measures of ‘net fiscal flows’ or ‘fiscal balances’ provided by the government or other actors. This unique...