The Incentive Effect of Equalization Gra
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Rodríguez, Javiera Bravo
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Article
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2013
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The Berkeley Electronic Press
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English
⚖ 731 KB
## Abstract Equalization grants that are inversely related to collected revenue increase the marginal cost of collecting because they tax the collection itself. The main finding is evidence for Chilean municipalities that equalization grants have this incentive effect on local revenue. In order to