DOI: 10.1016/0047-2727(84)90046-X
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摘要: This paper examines the welfare impact of intergovernmental transfers when recipient governments use distortionary taxes. Both lump-sum and matching grants are investigated. A ‘distortionary factor’ depending on local demand supply elasticities tax rate taxed commodity determines real income change to a jurisdiction per dollar transferred. Matching dominated by these can be set optimally for each recipient. If grant policy must uniform, positive (or negative) rates desired if equity-adjusted factors positively (negatively) correlated with public service levels.