In this book, experts from across the globe highlight the state of knowledge in intergovernmental transfer design. The essays collected in the volume represent creative new thinking about challenging policy issues and offer useful options for policy makers. The book offers academics and practitioners a thorough, thematic assessment of unresolved issues in the design of equalization grants.

"This paper presents a methodology to evaluate fiscal decentralization focusing on the potential mis-targeting of intergovernmental fiscal equalization transfers. The approach builds on an explicit comparison and the summary measurement of different (horizontal) allocation distributions across states or localities. Whereas formula-based fiscal transfers have the merit of being transparent and promoting revenue predictability in fiscal decentralization, in practice, two challenges emerge: (1) What are the appropriate formula designs given the sub-national data constraints evident in most decentralizing developing countries? and (2) How costly in terms of mis-targeting to the presumed expenditure needs and fiscal capacity are deviations from these types of benchmark formulas (for example, due to historical factors or the need to meet establishment costs such as civil service wages)? The authors illustrate this approach by assessing Indonesia's evolving intergovernmental fiscal system instituted in the 2001 Big Bang decentralization. The discussion comes against Indonesia's recent policy decision to fully fund sub-national civil servant wages as part of the base general allocation grant (DAU) transfers, raising questions about both incentive effects for local governments and potential mis-targeting. The authors identify potential efficiency losses from the DAU's horizontal misallocation from half a dozen alternative scenarios found in the policy dialogue, ranging from 9 to 30 percent-on the order of US$ 3.9 billion-of the overall annual size of this large intergovernmental transfer. The scale of these tradeoffs highlights the importance of intergovernmental transfers in more general debates in public finance for decentralized countries. "--World Bank web site.

Fiscal Federalism and Equalization Policy in Canada aims to increase public understanding of equalization and fiscal federalism by providing a comparative and multidisciplinary perspective on the history, politics, and economics of equalization policy in Canada. The authors provide a brief history, an analysis of the politics of equalization as witnessed over the last fifteen years, and a discussion of key economic debates concerning the role of the program and its effects. They also explore the relationship between equalization and other components of fiscal federalism, particularly the Canada Health Transfer and the Canada Social Transfer. The result is an analysis that draws from the best scholarship available in the fields of economics, economic history, political science, political sociology, and public policy.

This volume examines the public policy challenges of fiscal disparities, their sources, and how states are addressing them. States have spent considerable effort and money to reduce fiscal disparities among local governments, particularly in the area of education finance. Several options to reduce inequalities, including local option taxes, tax base sharing, and shared tax systems have met with varying degrees of success. Here public finance experts discuss the implementation of creative public policies for dealing with fiscal disparities. Particular attention is paid to school equalization, including the division of fiscal responsibilities between state and local governments, potential funding sources, and what is necessary to achieve school equity.

A comparative analysis of eleven transition economies.

The book offers a comparative analysis of center-region relations in Russia and in China. The authors focus in particular on fiscal ties and incentives, bureaucratic and local government practices, flows of information, and the determinants of divergence between both countries. The book is based on a synthesis of a large body of empirical and theoretical evidence, and will appeal to scholars in public economics, political economy and comparative politics, as well as to students and policy analysts.

In this collection of 17 articles, top scholars synthesize and analyze scholarship on this widely used tool of policy analysis, setting forth its accomplishments, difficulties, and means of implementation. Though CGE modeling does not play a prominent role in top US graduate schools, it is employed universally in the development of economic policy. This collection is particularly important because it presents a history of modeling applications and examines competing points of view. - Presents coherent summaries of CGE theories that inform major model types - Covers the construction of CGE databases, model solving, and computer-assisted interpretation of results - Shows how CGE modeling has made a contribution to economic policy

This handbook evaluates the persistent problems in the fiscal systems of state and local governments and what can be done to solve them. Each chapter provides a description of the discipline area, examines major developments in policy practices and research, and opines on future prospects.