Efficiency Effects of Fiscal Equalization on Economic Development
This study develops a theoretical model to analyse the incentive effects of revenue-sharing fiscal equalization systems on regional economic development, in the context of a representative tax system. The key finding is that the presence of a fiscal equalization net transfer incentivises a region...
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| Format: | Thesis |
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Curtin University
2020
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| Online Access: | http://hdl.handle.net/20.500.11937/86131 |
| Summary: | This study develops a theoretical model to analyse the incentive effects of revenue-sharing
fiscal equalization systems on regional economic development, in the context of a
representative tax system. The key finding is that the presence of a fiscal equalization net
transfer incentivises a region to select a suboptimal savings rate. This results in less
accumulation of capital for future regional economic development. |
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