Efficiency Effects of Fiscal Equalization on Economic Development
Access Status
Open access
Authors
Islam, MD Nahidul
Date
2020Supervisor
Felix Chan
Jeff Petchey
Type
Thesis
Award
PhD
Metadata
Show full item recordFaculty
Business and Law
School
School of Economics, Finance and Property
Collection
Abstract
This study develops a theoretical model to analyse the incentive effects of revenue-sharing fiscal equalization systems on regional economic development, in the context of a representative tax system. The key finding is that the presence of a fiscal equalization net transfer incentivises a region to select a suboptimal savings rate. This results in less accumulation of capital for future regional economic development.
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