Abstract

BARRIOS SUVELZA, Franz Xavier. THE EFFECT OF SPACE ON THE COST OF LOCAL PROVISION. AN EQUALIZATION BLOC MODEL FOR BOLIVIAN MUNICIPALITIES. Rev.econ.inst. [online]. 2005, vol.7, n.13, pp.193-225. ISSN 0124-5996.

Bolivia went through a very important territorial transformation following the approval of the Popular Participation Law in 1994, which led to generalised municipal opening. The benefits of this reform were accompanied by a number of negative effects, such as those regarding the system of State transfers to municipalities. This article proposes a new model of transfers to municipalities that would complement the current “system of per capita fiscal endowments to municipalities” with a model of “block inter-municipal fiscal equalization”.

Keywords : transfers; territorial order; supply costs; fiscal decentralization; equalization bloc; Bolivia.

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