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A note on political factors in federal fiscal arrangements in Australia

Dollery, Brian E. & Worthington, Andrew C. (1996) A note on political factors in federal fiscal arrangements in Australia. Economic Papers, 15(4), pp. 81-87.

Abstract

The Commonwealth Grants Commission represents a sophisticated institutional method of dealing with the problem of horizontal fiscal imbalances in Australia, which has managed to combine equity and efficiency considerations without untoward political bias. By contrast, the problem of vertical imbalance has been addressed by specific purpose payments, which are much more amenable to party political calculation, and can thus be employed to maximise electoral support. This note briefly reviews public finance and public choice models of intergovernmental grant determination and shows that a public choice perspective can shed at least some light on how party political factors may influence grants like specific purpose payments.

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ID Code: 2789
Item Type: Journal Article
Additional URLs:
Keywords: Public choice, fiscal federalism, intergovernmental grants, public finance
ISSN: 0812-0439
Subjects: Australian and New Zealand Standard Research Classification > STUDIES IN HUMAN SOCIETY (160000) > POLITICAL SCIENCE (160600) > Political Science not elsewhere classified (160699)
Australian and New Zealand Standard Research Classification > ECONOMICS (140000) > APPLIED ECONOMICS (140200) > Public Economics- Taxation and Revenue (140215)
Divisions: Current > QUT Faculties and Divisions > QUT Business School
Copyright Owner: Copyright 1996 Economics Society of Australia
Deposited On: 05 Dec 2005
Last Modified: 05 Jan 2011 23:26

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