Lehmann I, Wrede M (2019)
Publication Language: English
Publication Type: Journal article, Original article
Publication year: 2019
Book Volume: 75
Pages Range: 127-151
DOI: 10.1628/fa-2019-0004
Employing the approach of Albouy (2012), this paper evaluates the efficiency and equity of the municipal fiscal equalization scheme in the federal state of Bavaria in Germany. Calculating a measure reflecting the internalization of fiscal and real externalities by state grants, we conduct a regression analysis on variables describing efficiency and equity criteria. Because the fiscal equalization scheme redistributes revenues toward regions with low realized incomes and a larger population share of low-productivity residents, the scheme satisfies certain equity criteria. However, the fiscal equalization scheme likely does not internalize local public-good externalities and therefore hampers spatial efficiency.
APA:
Lehmann, I., & Wrede, M. (2019). The Bavarian Municipal Fiscal Equalization Scheme: Emphasis on Equity Rather than Efficiency. Finanzarchiv, 75, 127-151. https://dx.doi.org/10.1628/fa-2019-0004
MLA:
Lehmann, Isabella, and Matthias Wrede. "The Bavarian Municipal Fiscal Equalization Scheme: Emphasis on Equity Rather than Efficiency." Finanzarchiv 75 (2019): 127-151.
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