Not logged in.

Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Public Good Provision in a Federalist Country: Tiebout Competition, Fiscal Equalization, and Incentives for Efficiency in Switzerland
Organization Unit
Authors
  • Philippe K Widmer
  • Peter Zweifel
Language
  • English
Institution University of Zurich
Series Name Working paper series / Socioeconomic Institute
Number No. 804
Date 2010
Abstract Text The purpose of this paper is twofold. First, it measures the efficiency in the provision of public goods by local jurisdictions applying Data Envelopment Analysis (DEA). Second, it relates ef- ficiency scores to a fiscal equalization scheme designed to mitigate the negative consequences of Tiebout competition. The data come from the 26 cantons of Switzerland (2000-2004), a country characterized by marked federalism. Results show the equalization scheme to indeed have a negative influence on performance, resulting in an efficiency-equity trade-off (Stiglitz, 1988). However, substitution of earmarked payments by lump-sum payments as part of the 2008 reform is likely to enhance cantonal performance.
Official URL http://www.econ.uzh.ch/wp.html
PDF File Download from ZORA
Export BibTeX
EP3 XML (ZORA)