In a multi-level government system institutional legacy and the
assignment of roles and responsibilities between the federal and
the subnational governments create imbalances. These imbalances in
economic terms are a result of a mismatch between revenue-raising
capacity and the spending responsibilities of the different levels
of the government. Intergovernmental Transfers in Federations
presents a synthesis of recent international experience of large
federations in addressing the most fundamental issues of horizontal
and vertical imbalances through the prism of intergovernmental
transfers. It compares mature federal systems and the maturing
federations of the world. Contributors delve into the various
aspects of policymaking as well as policy choices in selecting an
efficiency path for a meaningful fiscal devolution aimed at
integrating performance and incentives to reach an expenditure mix
that facilitates better service delivery. Chapters include
empirical, theoretical and methodological contributions as well as
case studies that illustrate important policy or methodological
lessons for future work. This collection is essential reading for
researchers, practitioners, policy makers and students wishing to
understand the choices made by different countries in response to
the overarching principles of needs, equity and efficiency for
sharing of resources.
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