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Equalization of Fiscal Spatial Polarization in Federal State

Author: Evelina V. Peshina

Abstract:

The article marks the major milestones in the theory and practice of fiscal equalization in federal states, first discussed and theoretically justified in the works of R. Musgrave and J. Buchanan. The author looks at the main differences of conceptual propositions of fiscal inequality in federal states formulated by these scientists: the basis for and level of fiscal inequality, models of territorial fiscal equalization, targeted character and reasons of fiscal inequality. The fiscal equalization transfers to territories according to the models “horizontal equity” and “fiscal capacity” are calculated for exemplification.

Keywords: fiscal spatial polarization; fiscal disparity; fiscal imbalance; fiscal equalization; fiscal equity.