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An Economic Assessment Of German Fiscal Equalization Schemes Since 1970: What Prospects For A Unified Germany?

Author: LAURENT GUIHÉRY
Published in PFM, Vol. 1 No. 4

The purpose of this contribution is to assess the spatial impact
of the German fiscal equalization system between 1970 and 1993, but
also since 1995, when the new Länder joined the complex mechanism of
German fiscal federalism. One of the most interesting results shows
that since 1970, there has been a slow convergence of regional fiscal
capacities before redistribution among Western German Länder.

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