Beyond Gaps and Imbalances: Re-Structuring the Debate on Intergovernmental Fiscal Relations

Author
Sharma, Chanchal Kumar
Published 2010-05-10
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Abstract

How do we know whether a country suffers from vertical fiscal imbalance (VFI)? What should be done about it? Academic appreciation of these issues in general, and the nature of political behaviour in particular, both have major implications for the way federations are fiscally structured. While the latter clearly is a problem of political negotiations, our focus is on the former, i.e., conceptual clarity, which precedes meaningful negotiations. Thus, the paper aims to clarify the multiple usages of the symbolically loaded terms VFI and VFG (Vertical Fiscal Gap) by critically engaging the fundamental assumptions and premises underlying these ostensibly similar notions. It proposes an alternative conceptual framework and introduces the concepts of Vertical Fiscal Asymmetry (VFA) and Vertical Fiscal Difference (VFD) that have the potential to better structure public debate on issues of vertical fiscal relations and stimulate a sensible appreciation of the problem and possible remedies.

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Details

Title
Beyond Gaps and Imbalances: Re-Structuring the Debate on Intergovernmental Fiscal Relations
Author
Sharma, Chanchal Kumar
Year
2010
Published
2010-05-10
Type
Research Paper
Language
eng
Keywords
Fiscal Federalism · Intergovernmental Relations · Vertical Fiscal Imbalance · Vertical Fiscal Gap · Fiscal Policy · Federalism · Secession · State And Local Government · Public Administration · Fiscal Policies And Behavior Of Economic Agents

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This is Version 9 of this record. Q-Sensei Corp. added this version on August 21, 2015. It is an edited version of the original data import from RePEc. View changes to the previous version or view the complete version history.