The Effect of Space on the Cost of Local Provision: An Equalization Bloc Model for Bolivian Municipalities
Franz Xavier Barrios Suvelza
Ministerio de la Presidencia de la República de Bolivia
Revista de Economía Institucional, Vol. 7, No. 13, Second Semester 2005
Bolivia went through a very important territorial transformation following the approval of the Popular Participation Law in 1994, which led to generalised municipal opening. The benefits of this reform were accompanied by a number of negative effects, such as those regarding the system of State transfers to municipalities. This article proposes a new model of transfers to municipalities that would complement the current "system of per capita fiscal endowments to municipalities" with a model of "inter-municipal fiscal equalization by blocks".
Number of Pages in PDF File: 33
Keywords: transfers, territorial order, supply costs, fiscal decentralization, equalization bloc, Bolivia
JEL Classification: H53, H72, H79Accepted Paper Series
Date posted: August 13, 2006
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