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Die Notwendigkeit der Einwohnerwertung

Author

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  • Horst Zimmermann

Abstract

German equalisation systems among states (Länder) and among communities assign higher expenditure needs to larger cities. For the system among the states (Länderfinanzausgleich), in which the three city-states are assigned a value of 135 compared to a value of 100 for the other states, this element is challenged in a pending case before the constitutional court. The paper argues that the city-states should be treated like any large city in Germany, which would result in their being assigned a value well above 135. The main justification for the higher value for larger cities is seen in the crucial role of modern agglomerations for national economic growth. To maintain this role, they have to be able to keep or receive enough public finances, given that they contribute to upper-level finances way above the average but receive relatively little through those levels’ spending. The progressive scale smoothes at least some of this effect. Copyright ZBW and Springer-Verlag Berlin Heidelberg 2013

Suggested Citation

  • Horst Zimmermann, 2013. "Die Notwendigkeit der Einwohnerwertung," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 93(8), pages 534-538, August.
    • Handle: RePEc:spr:wirtsc:v:93:y:2013:i:8:p:534-538
    DOI: 10.1007/s10273-013-1561-x
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    Citations

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    Cited by:

    1. Dörrenberg Philipp & Heinemann Friedrich & Khayal Nuri, 2015. "Reformoptionen für den deutschen Finanzföderalismus," Perspektiven der Wirtschaftspolitik, De Gruyter, vol. 16(1), pages 26-43, March.
    2. Michael Broer, 2014. "Reformoptionen des Länderfinanzausgleichs unter politökonomischer Betrachtung," Wirtschaftsdienst, Springer;ZBW - Leibniz Information Centre for Economics, vol. 94(4), pages 258-266, April.

    More about this item

    Keywords

    H72; H73; H77; R51;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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