Theory and Practice of Intergovernmental Transfers

Shah, Anwar

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Theory and Practice of Intergovernmental Transfers

Reforming China's Public Finances, pp. 215-234, 1995

11 Pages Posted: 19 Apr 2006

See all articles by Anwar Shah

Anwar Shah

World Bank

Abstract

This paper provides a selective survey of the theory and practice of intergovernmental transfers with a view to developing a broad agenda for reform. It discusses the economic rationale for intergovernmental transfers and its implications for the design of transfers. Issues and options in the design of equalization programs to reduce regional fiscal disparities are also presented. Existing mechanisms for fiscal transfers in developing countries are also reviewed.

Keywords: intergovernmental fiscal relations, fiscal federalism

JEL Classification: E62, H77

Suggested Citation: Suggested Citation

Shah, Anwar, Theory and Practice of Intergovernmental Transfers. Reforming China's Public Finances, pp. 215-234, 1995, Available at SSRN: https://ssrn.com/abstract=896507