Fiscal Equalization: Challenges in the Design of Intergovernmental Transfers

These original essays highlight the state of knowledge in intergovernmental transfer design. They represent creative new thinking about challenging policy issues and offer useful options for policy makers. Five specific themes are covered in separate sections. They include:

The fundamental nature and objectives of equalization grants and their consequences on efficiency and equity;

The appropriate institutional setting for the design and implementation of equalization grant systems;

The challenges in the design of formulas with limited data availability for recurrent and capital purposes;

The coordination of equalization grants with other related policies;

The political economy behind equalization transfers.

"There is a genuine need for this book; it will become a 'benchmark' reference. I am impressed with its content, organization, readability, and fresh thematic approach."

Robert D. Ebel, The World Bank