The Effect of Space on the Cost of Local Provision: An Equalization Bloc Model for Bolivian Municipalities

Barrios Suvelza, Franz Xavier

Abstract

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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

Abstract:
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, H79

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Date posted: August 13, 2006

Suggested Citation

Barrios Suvelza, Franz Xavier, The Effect of Space on the Cost of Local Provision: An Equalization Bloc Model for Bolivian Municipalities. Revista de Economía Institucional, Vol. 7, No. 13, Second Semester 2005. Available at SSRN: http://ssrn.com/abstract=923878

Contact Information

Franz Xavier Barrios Suvelza (Contact Author)

Ministerio de la Presidencia de la República de Bolivia ( email )

Bolivia