한국 지방교부세제도의 장기개선방안 분석-정책모의실험을 중심으로-

Abstract

This paper examines the problems of allocation mechanism for local allocation tax in Korea. Especially using policy simulation analysis, we analyze the effect of various reform measures for local allocation tax on distribution of funds among local governments and administration process. Three reform measures are as follows. Reform measures A is to estimate the basic fiscal demand of local government using a single equation system in which only population, area, and the number of local government officials are measurement items. Reform measures B is to classify the basic fiscal demand into three categories-general administration expenditures, social development expenditures, and economic development expenditures. Reform measures C is to classify the basic fiscal demand into twelve categories which exactly correspond to current local government budget items. First, we found that only alternative C will improve equity in distribution of local allocation tax. Second, in terms of simplicity of administration process all three alternatives will improve the current system. Finally, we found that in terms of variability of rankings of benefits from local allocation tax alternative C is better than others. Therefore, we conclude that alternative C is the optimal reform measures for local allocation tax in Korea.