These original essays highlight the state of knowledge in
intergovernmental transfer design. They represent creative new
thinking about challenging policy issues and offer useful options
for policy makers. Five specific themes are covered in separate
sections. They include: the fundamental nature and objectives of
equalization grants and their consequences on efficiency and
equity; the appropriate institutional setting for the design and
implementation of equalization grant systems; the challenges in the
design of formulas with limited data availability for recurrent and
capital purposes; the coordination of equalization grants with
other related policies; and the political economy behind
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