Do formula-based intergovernmental transfer mechanisms eliminate politically motivated targeting? Evidence from Ghana.

Various countries have adopted formulas for determining intergovernmental transfers as a strategy to limit the role of political considerations in resource allocation. In this paper, we investigate a formula-based system of allocating resources from a central government to local governments to deter...

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Publicado en:Journal of Development Economics Vol. 96; no. 2; pp. 380 - 391
Autor principal: Banful, Afua Branoah
Formato: Artículo
Publicado: Elsevier Science November 2011
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1016/j.jdeveco.2010.08.012
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        atl: Do formula-based intergovernmental transfer mechanisms eliminate politically motivated targeting? Evidence from Ghana.
      aug:
        au: Banful, Afua Branoah
      su:
        Resource allocation -- Mathematical models
        Intergovernmental fiscal relations
        Mathematical models
        Local government
        Ghana
      sug:
        subj:
          Ghana
          Resource allocation -- Mathematical models
          Intergovernmental fiscal relations
          Mathematical models
          Local government
      keyword: Finance, Public -- Ghana
      ab: Various countries have adopted formulas for determining intergovernmental transfers as a strategy to limit the role of political considerations in resource allocation. In this paper, we investigate a formula-based system of allocating resources from a central government to local governments to determine whether the political characteristics of recipient areas have any bearing on their allocation. Specifically, we study the sharing of resources of the District Assemblies Common Fund (DACF) in Ghana amongst the country's district governments over the period 1994 to 2005. We find evidence that the mechanism does not eliminate politically motivated targeting of the grants. Per capita DACF grants were higher in districts where vote margins in the previous presidential election were lower, suggesting that swing districts were targeted. We find evidence that DACF formula indicators and their weighting were chosen and amended to produce politically desired patterns of transfers.
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    language: English
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