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Economic disparities and fiscal equalization

In: Rethinking Multilevel Governance

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Abstract

Focusing on the horizontal dimension of multilevel governance, this chapter addresses the causes and the manifestation of spatial diversity of economies, how diversity is framed and how the framing as disparity affects multilevel governance. It outlines the causes of persisting spatial economic and social inequality and the resulting fiscal disparity and distributive conflicts in multilevel governance. Governments can mitigate unjustified disparities by redistributing authority or fiscal equalization. Both policies require joint decisions of governments with contrasting preferences. The institutional conditions for solving these conflicts are more favourable within a state than in multilevel governance beyond the state.

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  • ., 2024. "Economic disparities and fiscal equalization," Chapters, in: Rethinking Multilevel Governance, chapter 5, pages 75-94, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:22041_5
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    File URL: https://www.elgaronline.com/doi/10.4337/9781035306299.00009
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    Law - Academic; Politics and Public Policy;

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