OECD Working Papers on Fiscal Federalism

2226-5848 (online)
Hide / Show Abstract

This series covers issues related to intergovernmental fiscal relations and local/regional public finance, such as: tax and spending assignment across government levels; intergovernmental grants; fiscal equalization; local and regional public service efficiency; inter-jurisdictional tax competition; and macroeconomic issues such as intergovernmental fiscal management and sub-central fiscal rules. Many of these working papers are outputs of the OECD Network on Fiscal Relations Across Levels of Government. Related working papers on fiscal federalism issues are also published in other OECD working paper series on tax policy, economics, public governance and regional development. An integrated list of key papers produced by the Fiscal Network can be found here.

(Note: Nos 1, 6 and 8 are available in the OECD Economics Department Working Papers, as Nos 465, 626 and 705.)


Finding the Dividing Line Between Tax Sharing and Grants

A Statistical Investigation You or your institution have access to this content

Click to Access: 
  • PDF
  • http://www.keepeek.com/Digital-Asset-Management/oecd/taxation/finding-the-dividing-line-between-tax-sharing-and-grants_5k97b10vvbnw-en
  • READ
Hansjörg Blöchliger1, Oliver Petzold1
Author Affiliations
  • 1: OECD, France

17 June 2009
Bibliographic information

Hide / Show Abstract

Tax sharing and intergovernmental grants are two sub-central funding arrangements that are often difficult to disentangle. The dividing line is not drawn uniformly across OECD countries or across time, and rules established in National Accounts, Revenue Statistics and others give incomplete guidance. Moreover, tax sharing arrangements may differ according to how tax revenue is distributed across individual jurisdictions. In order to ensure that fiscal arrangements are recorded properly and on a comparable basis, a set of clear criteria to delineate them is required. This section presents the results of a test that was applied in order to find the dividing line a) between tax sharing and intergovernmental grants and b) between different categories of tax sharing. The test was performed using questionnaire responses and builds on earlier documents on the same topic presented to Fiscal Network Delegates in 2006 and 2008.
Visit the OECD web site