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Federalism, Horizontal Equity, and the Optimal Grant

Author

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  • Alan P. Hamlin

    (University of Southhampton)

Abstract

Federalism is often argued to produce a particular problem in designing hori- Abstract zontal equity policy that may be partially overcome by the use of intergovernmental grants. The nature of the federal equity problem is reconsidered; it is argued that only a specific subclass offederations suffer from an inherent equity problem and that in these cases, the use of grants is a necessary part of the problem rather than its solution. The specific choice ofgrant is reconsidered in the context of simple majority voting on local issues to illustrate a difficulty in the identification of the optimal grant.

Suggested Citation

  • Alan P. Hamlin, 1985. "Federalism, Horizontal Equity, and the Optimal Grant," Public Finance Review, , vol. 13(2), pages 115-131, April.
    • Handle: RePEc:sae:pubfin:v:13:y:1985:i:2:p:115-131
    DOI: 10.1177/109114218501300201
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    References listed on IDEAS

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    1. Richard A. Musgrave, 1961. "Approaches to a Fiscal Theory of Political Federalism," NBER Chapters, in: Public Finances: Needs, Sources, and Utilization, pages 97-134, National Bureau of Economic Research, Inc.
    2. A. Hamlin, 1984. "Constitutional control of processes and their outcomes," Public Choice, Springer, vol. 42(2), pages 133-145, January.
    3. David F. Bradford & Wallace E. Oates, 1971. "The Analysis of Revenue Sharing in a New Approach to Collective Fiscal Decisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 85(3), pages 416-439.
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    Cited by:

    1. Alan P. Hamlin, 1991. "Decentralization, Competition and the Efficiency of Federalism," The Economic Record, The Economic Society of Australia, vol. 67(3), pages 193-204, September.
    2. Sharon L. Caudle & Kathryn E. Newcomer, 1986. "Grant Allocation Decision Rules," Evaluation Review, , vol. 10(6), pages 860-879, December.
    3. A. Hamlin, 1985. "The political economy of constitutional federalism," Public Choice, Springer, vol. 46(2), pages 187-195, January.
    4. Idowu, Lanloye Oluwasegun & Prof. Damagum, Y. M. & Obasa, Rotimi Sunday Mr., 2020. "Assessment of Horizontal Equity of Personal Income Tax in Nigeria," Thesis Commons p9geb, Center for Open Science.

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