Designing State Aid Formulas: The Case of a New Formula for Distributing Municipal Aid in Massachusetts

Abstract

Abstract This paper designs a new equalization‐aid formula based on fiscal gaps of local communities. Using conceptual analysis and simulations with Massachusetts data, the authors illustrate the tradeoffs that policymakers face in deciding on the policy variables in the formula and lay out several general guidelines for setting up these variables. When… (More)

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Cite this paper

@inproceedings{Zhao2008DesigningSA, title={Designing State Aid Formulas: The Case of a New Formula for Distributing Municipal Aid in Massachusetts}, author={Bo Zhao and Katharine L. Bradbury}, year={2008} }