In Search of Long Run Stability for Fiscal Transfers in Indian Federalism

Das, Nimai (2017): In Search of Long Run Stability for Fiscal Transfers in Indian Federalism.

Abstract

The stability of federal transfers system in long run to be achieved if both the forms of transfers, that is to say central devolution (centre to state) and state contribution (state to centre) are stationary and cointegrated. Prior to analyze this issue, it offers a comparative picture of the states with net gain/loss from federal transfers over time. Though, the central resource pools are constantly welled-off by resource mobilizations of the states, the financial devolution patterns however failed to address any corrective measures in favor of the fiscally unhealthy states.

• Item Type: MPRA Paper
• Language: English
• Keywords: Indian fiscal federalism, sustainable resource transfers, cointegration with structural break
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C32 - Time-Series Models ; Dynamic Quantile Regressions ; Dynamic Treatment Effect Models ; Diffusion Processes ; State Space Models; H - Public Economics > H1 - Structure and Scope of Government > H11 - Structure, Scope, and Performance of Government; H - Public Economics > H7 - State and Local Government ; Intergovernmental Relations > H77 - Intergovernmental Relations ; Federalism ; Secession

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