The funding of basic education is provided via different schemes. In the United States, local sources had long been dominant; equity concerns later pulled in the state for resource equalization under constitutional considerations. Another scheme is the involvement of the central government. In...

In the study of state-local relations, interactions between the two layers in fiscal policy are an important area. States direct and exercise oversight over local governments, also provide substantial financial assistance. These have played into the state-local interactions in their fiscal...

This article examines the theory behind the design of fiscal transfers; it identifies acyclicality of transfers as a drawback and proposes counter cyclical design as an optimal fiscal framework to mitigate cyclical economic fluctuations. It further advocates counter-cyclical transfers for...