Post by Sapphire Capital on Jul 11, 2008 6:02:54 GMT 4
Why Focus on Spending Needs Factors? The Political Economy of Fiscal Transfer Reforms in Mexico
EHTISHAM AHMAD
International Monetary Fund (IMF)
JOSÉ ANTONIO GONZÁLEZ ANAYA
Mexican Ministry of Finance and Public Credit
GIORGIO BROSIO
University of Turin
MERCEDES GARCÍA-ESCRIBANO
International Monetary Fund (IMF)
BEN LOCKWOOD
University of Warwick - Department of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
ERNESTO REVILLA
Mexican Ministry of Finance and Public Credit
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October 2007
IMF Working Paper No. 07/252
Abstract:
An equalization system ensures that subnational governments can provide similar level of public services at a comparable level of own tax-effort. This paper focuses on the importance of spending needs factors in the design of equalization transfers as well as special purpose transfers - and the role that this could have in setting the agenda for better accountability for recipient governments, illustrating both design and implementation questions with examples from Mexico. The paper also takes into account the difficult political economy constraints to reforming any system of transfers.
papers.ssrn.com/sol3/Delivery.cfm/wp07252.pdf?abstractid=1087167&mirid=4
EHTISHAM AHMAD
International Monetary Fund (IMF)
JOSÉ ANTONIO GONZÁLEZ ANAYA
Mexican Ministry of Finance and Public Credit
GIORGIO BROSIO
University of Turin
MERCEDES GARCÍA-ESCRIBANO
International Monetary Fund (IMF)
BEN LOCKWOOD
University of Warwick - Department of Economics; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research)
ERNESTO REVILLA
Mexican Ministry of Finance and Public Credit
--------------------------------------------------------------------------------
October 2007
IMF Working Paper No. 07/252
Abstract:
An equalization system ensures that subnational governments can provide similar level of public services at a comparable level of own tax-effort. This paper focuses on the importance of spending needs factors in the design of equalization transfers as well as special purpose transfers - and the role that this could have in setting the agenda for better accountability for recipient governments, illustrating both design and implementation questions with examples from Mexico. The paper also takes into account the difficult political economy constraints to reforming any system of transfers.
papers.ssrn.com/sol3/Delivery.cfm/wp07252.pdf?abstractid=1087167&mirid=4