A centralized directional distance model for efficient and horizontally equitable grants allocation to local governments
Consultable a partir de
2024-06-01
Fecha
2022Versión
Acceso embargado / Sarbidea bahitua dago
Tipo
Artículo / Artikulua
Versión
Versión aceptada / Onetsi den bertsioa
Identificador del proyecto
Impacto
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10.1016/j.seps.2020.100947
Resumen
This paper proposes a directional distance model for efficient resource allocation when there is a centralized
decision maker who oversees all units. The model is designed to allocate grants from an upper-tier government to
the municipalities under its jurisdiction. Local governments employ the grants together with levied local taxes to
provide services to their citizens. The objective of our ...
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This paper proposes a directional distance model for efficient resource allocation when there is a centralized
decision maker who oversees all units. The model is designed to allocate grants from an upper-tier government to
the municipalities under its jurisdiction. Local governments employ the grants together with levied local taxes to
provide services to their citizens. The objective of our formulation is to optimize grants allocation across municipalities taking into account efficiency, effectiveness and horizontal fiscal equity criteria. The model easily
allows the setting of alternative priorities of the central decision maker, thus permitting quantification of the
trade-off between the potential increase in the provision of local services and its associated cost. The model is
applied to the allocation of current grants in the autonomous community of Navarre in northern Spain. [--]
Materias
Centralized resource allocation,
Efficiency,
Horizontal equity,
Local governments,
Grant
Editor
Elsevier
Publicado en
Socio-Economic Planning Sciences 81 (2022) 100947
Departamento
Universidad Pública de Navarra/Nafarroako Unibertsitate Publikoa. Institute for Advanced Research in Business and Economics - INARBE
Versión del editor
Entidades Financiadoras
The authors acknowledge financial support from the Spanish Ministry of Economy and Competitiveness and the European Regional
Development Fund (AEI/FEDER, European Union), research projects
ECO2016-76681-R and ECO2017-86054-C3-2-R.