The Bavarian Municipal Fiscal Equalization Scheme: Emphasis on Equity Rather than Efficiency

Journal article
(Original article)


Publication Details

Author(s): Lehmann I, Wrede M
Journal: Finanzarchiv
Publication year: 2019
ISSN: 0015-2218
Language: English


Abstract

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.


FAU Authors / FAU Editors

Wrede, Matthias Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Sozialpolitik


How to cite

APA:
Lehmann, I., & Wrede, M. (2019). The Bavarian Municipal Fiscal Equalization Scheme: Emphasis on Equity Rather than Efficiency. Finanzarchiv.

MLA:
Lehmann, Isabella, and Matthias Wrede. "The Bavarian Municipal Fiscal Equalization Scheme: Emphasis on Equity Rather than Efficiency." Finanzarchiv (2019).

BibTeX: 

Last updated on 2019-09-01 at 08:23