This paper analyzes the main design issues for utilizing capital transfers with an equalization objective within a system of sub-national finance. Although there is a vast literature and ample policy practice with the design of equalization grants involving needs for recurrent expenditures...

The viability of stimulative fiscal policy has become a political issue in South Korea, Taiwan, and Thailand since the Asian financial crisis of 1997. This paper examines historical relationships between government spending, taxes, and output in these countries using cointegration and vector...

The key aspects of intergovernmental fiscal relations must be dealt with in the specific circumstances of each country. Nonetheless, certain basic questions invariably come up in every country. The present paper attempts to digest and reflect upon what we have learned to date about such...

The search for “fiscal indicators” to provide a short-hand (and preferably quantitative) picture of the size, direction, and nature of intergovernmental finance – and, ideally, some guidance for policy designed to improve outcomes – appears to be neverending. “Fiscal balance” and...

The value-added tax has, in recent decades, become the most important single tax in most developing and transitional economies. This paper reviews some problems that have emerged as important as more experience has been gained with how VATs really work in many such countries and suggests some...

Canada, Russia, Nigeria, Indonesia, Macedonia, Switzerland, South Africa, China, Belgium, Bosnia-Herzegovina, Spain, Uganda, the Philippines, Tanzania, India, Rwanda, Sri Lanka, the United Kingdom, Ethiopia, Turkey, Serbia, Algeria, Sudan, Moldova, Morocco, Cameroon, even France…What can such...

This paper argues that both horizontal and intertemporal competition among recipient governments are needed in order to ensure incentives for effective utilization of targeted transfers. This has implications for budgeting frameworks and the types of information needed, that might be amenable to...

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...

The aim of this chapter is to analyze the role played by the Personal Wealth Tax in the process of Spanish tax reform started in 1977. Besides the Personal Net Wealth Tax we also study the reform process of the Inheritance and Gift Taxes. These taxes have generally been justified on equity...

This paper reviews causes and consequences of fiscal inequities among subnational governments in East Asia. It shows that endowments and fiscal capacities among subnational entities are large, and that these inequities translate into large fiscal inequities prior to equalization. The current...