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ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
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http://hdl.handle.net/10419/30669
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| Title: | | Local fiscal equalization in Estonia : is a reform necessary?  |
| Authors: | | Friedrich, Peter Nam, Chang Woon Reiljan, Janno |
| Issue Date: | | 2009 |
| Series/Report no.: | | CESifo working paper 2800 |
| Abstract: | | Estonian municipalities should perform a broad range of functions, while their fiscal resources are often limited and large disparities in fiscal capacity prevail among them. Moreover, the power to regulate fiscal affairs is mostly in the hands of the central government. We discuss how a strict application of the connexity principle can protect municipalities from the fiscal bottleneck. We also recommend the introduction of the principle of parallelism and investigate its effects on the unconditional, down-flow grant system in Estonia. In particular the procedure of determining the total sum of block grants appears to be changed. |
| Subjects: | | fiscal equalization municipal finance connexity principles of parallelism Estonia |
| JEL: | | H27 H70 H77 R10 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
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