scholarly journals The Croatian fiscal equalization system is improving

2017 ◽  
Author(s):  
Anto Bajo ◽  
Marko Primorac
Keyword(s):  
Fiscal Equalization ◽  
Fiscal Equalization System

scholarly journals Verbesserte Finanzbedarfsmessung im nordrhein-westfälischen Finanzausgleich und ihre Verteilungswirkungen

2018 ◽  
Vol 67 (2) ◽  
pp. 189-218
Author(s):  
Thomas Brenner ◽  
Thomas Döring
Keyword(s):  
Robust Regression ◽  
Status Quo ◽  
Recent Past ◽  
Time Stability ◽  
Fiscal Equalization ◽  
Alternative Approach ◽  
Parameter Variations ◽  
Regression Approach ◽  
The Status ◽  
Fiscal Equalization System

Abstract Within the local fiscal equalization system of North Rhine-Westphalia, anticipated financial needs of municipalities are estimated by the use of regression analysis. In the recent past the previously exercised regression approach shows unexpected results concerning the main parameters determining intra-system allocation of general grants. Against this background the paper analyses the reasons for these parameter variations in order to identify an alternative approach to achieve regression results with higher accuracy and time stability both of which are of particular importance from a fiscal equalization policy perspective. It will be shown that the so-called robust regression is such an alternative method which leads – in case of its implementation – to divergent distributional effects compared to the status quo.

scholarly journals Wirkung einer Feiertagsbereinigung des Länderfinanzausgleichs – eine empirische Analyse des deutschen Finanzausgleichs

2009 ◽  
Vol 58 (2) ◽  
Author(s):  
Michael Broer
Keyword(s):  
Tax Revenue ◽  
Tax Rates ◽  
Fiscal Equalization ◽  
Ability To Pay ◽  
Tax Revenues ◽  
Empirische Analyse ◽  
Per Capita ◽  
The Difference ◽  
The Right ◽  
Fiscal Equalization System

AbstractIn the German system of fiscal equalization Länder (States) with tax revenue below the average get payments from the Lander above the average. The difference between the average and the own tax revenue per capita will be compensated up to 75 %. To prevent Länder from getting payments form other Länder by lowering their own tax rates and to get the right information about their ability to pay, the revenue of taxes with taxing autonomy is standardized. But Länder could also influence their tax revenues by the number of holidays, each Land decides on its own. A Land with many own holidays will get lower tax revenues and higher payments in the fiscal equalization system than the same Land with no extra holidays. To collect the real ability to pay of the Lander in the fiscal equalization system, it is necessary to eliminate the effect of the different number of holidays. This paper shows an approach to neutralize this effect and calculates its impact to the payments of each Land in the fiscal equalization system.

Political Economy of Fiscal Equalization: The Case of Croatia

2017 ◽  
Vol 15 (2) ◽  
pp. 155-173 ◽  
Author(s):  
Anto Bajo ◽  
Marko Primorac
Keyword(s):  
Political Economy ◽  
Local Government ◽  
Income Tax ◽  
Central Government ◽  
The Political ◽  
Mountainous Areas ◽  
Fiscal Equalization ◽  
Political Alignment ◽  
Fiscal Equalization System ◽  
The Relationship

Due to ineffectiveness in mitigating fiscal inequalities, Croatian fiscal equalization system has recently been reformed. Before that, criteria for application of fiscal equalization instruments were based on a status of local government units in areas of special national concern and hill and mountainous areas. The aim of this paper is to examine the relationship between the use of equalization instruments and political structure of local government units in 2010. The research revealed a statistically significant relationship between the political alignment of local and central government and the preferential status at areas of special national concern and the distribution of grants through the income tax return.

Ist im Länderfinanzausgleich die isolierte Berechnung von Grenzentzugsraten für einzelne Steuern sinnvoll?

2019 ◽  
Vol 68 (1) ◽  
pp. 74-91
Author(s):  
Michael Broer
Keyword(s):  
Simulation Analysis ◽  
Status Quo ◽  
Fiscal Equalization ◽  
Corporation Tax ◽  
Tax Revenues ◽  
The Status ◽  
Fiscal Equalization System ◽  
New System

Abstract In 2020 the new fiscal equalization system will come in force. One problem of the new system seems to be, that local tax revenues (e. g. local trade tax) are subject to much higher redistribution than under the status quo; the maximum of redistribution is higher than 100 %. But these results do ignore, that taxes could be seen as co-products. If e. g. the base of the local trade tax increases, the base of the corporation tax will raise, too. So it is not possible, to change only the revenue of one tax like the former analysis imply. Having this in mind, a simulation analysis shows, that the redistribution will always be lower than 100 %.

scholarly journals The role of institutions in successful fiscal arrangements: The case of Australia and Argentina

2013 ◽  
Vol 10 (2) ◽  
pp. 646-658 ◽  
Author(s):  
Alexis S. Esposto ◽  
Meshaal Alshammary
Keyword(s):  
Developing Countries ◽  
Agency Problem ◽  
Fiscal Equalization ◽  
Eclectic Approach ◽  
Financial Arrangements ◽  
Fiscal Equalization System ◽  
The Way

This paper discusses the role of institutions in successful fiscal arrangements by comparing the fiscal equalization system of two nations, Argentina and Australia. The paper shows that Australia’s fiscal vertical and horizontal equalisation model is on the whole simpler, more transparent, efficient and accountable to that of Argentina. The paper also illustrates Argentina’s agency problem in fiscal financial arrangements. A major challenge for developing countries like Argentina is to strengthen their institutional matrices. One way of achieving this is through the consolidation of Argentina’s institutions. Another is to adopt an eclectic approach to ‘institutional matrix’ building. Looking at Australia’s experience might be the way forward for Argentina’s development

Sinnhaftigkeit und Effektivität der deutschen Schuldenbremse

2010 ◽  
Vol 11 (3) ◽  
pp. 226-245 ◽  
Author(s):  
Lars P. Feld
Keyword(s):  
Federal Government ◽  
Fiscal Consolidation ◽  
Fiscal Equalization ◽  
Public Finances ◽  
Debt Brake ◽  
Financial Conditions ◽  
Fiscal Equalization System

AbstractSince 2009 Germany has a new debt regime that requires the federal government to reduce its structural deficits to 0.35 percent of GDP until 2016 and the Länder to balance their budgets structurally until 2020. In this paper the rationale for a debt brake is discussed, the provisions of the new regime are summarized and its effectiveness is assessed. Although the new debt brake basically provides for a reasonable framework to achieve sustainable public finances, several loopholes remain that enable finance ministers to avoid fiscal consolidation. Particularly problematic are the provisions for the Länder which have incentives to appear excessively indebted until 2019 in order to negotiate better financial conditions in the fiscal equalization system that must be revised until 2019. These incentives may be stronger than the constitutional provision to reduce deficits.

Education and fiscal decentralization. The case of municipal education in Chile

2018 ◽  
Vol 36 (8) ◽  
pp. 1499-1521 ◽  
Author(s):  
Leonardo Letelier S ◽  
Hector Ormeño C
Keyword(s):  
Public Policy ◽  
Public Schools ◽  
Panel Data ◽  
Fiscal Decentralization ◽  
Fiscal Equalization ◽  
Municipal Governments ◽  
Radical Reform ◽  
Public School Education ◽  
The Government ◽  
Fiscal Equalization System

Chile implemented a radical reform in favor of decentralization at the beginning of the 1980s, with municipalities taking over the administration of public school education. The government that came to power in 2014 is committed to revert this reform, removing public schools from municipal control. Using panel data gathered between 2005 and 2013, this study shows that municipalities with greater autonomy performed better when administrating schools. Two major conclusions may be drawn. First, selective decentralization in favor of more autonomous municipalities is a better public policy approach relative to an all across the board solution. Second, since this autonomy is very unevenly distributed across municipal governments, a renewed and more effective fiscal equalization system should be established in Chile.

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