Fiscal Transfers, Natural Calamities and Partisan Politics: Evidence from India

Natural Calamities

Drought is perhaps the manifestation of desertification, which may be because of unprecedented soil erosion, large scale deforestation and abrupt change in micro-climate thereby increasing the temperature and reducing rainfall etc., ultimately leads to fall of groundwater level and hence, loss of agricultural productivity of the land, due to lack of water resources. Since, Indian Agriculture is...

Fiscal versus Monetary Dominance: Evidence from Iran

In this paper, we dealt with fiscal dominance, which is a situation in which the fiscal authority sets its expenditure and taxes without regard to any requirement of intertemporal budget balance. Therefore, the monetary authority must adjust its policies to ensure that the government budget is in balance. The existence of oil revenues for the government on the one hand and its lack of access to...

Politics and Local Economic Growth: Evidence from India

Does politics have an impact on local economic outcomes? Using a regression discontinuity design built around close elections in India from 1990-2005, we examine the local economic effects of one form of political favoritism: the benefit of having a local politician who is aligned with the party in control of the state government. We show that private sector employment in politically aligned co...

Intergovernmental Fiscal Transfers in Asia 2 Intergovernmental Fiscal Transfers : Concepts , International Practice , and Policy Issues

There is a large conceptual and empirical literature on intergovernmental fiscal transfers. Drawing on this work and examples from various countries, we provide in this chapter a broad overview of the theory and practice of intergovernmental transfers, with particular focus on developing countries. We begin with a review of the main objectives of intergovernmental transfers and the criteria use...

Intergovernmental Fiscal Transfers: Some Lessons