정부보조금의 생산효율성과 배분에 관한 연구
A Study on How to Distribute Government Grants: A Criterion of Efficiency Reconsidered
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This paper deals with the question of how to allocate central government grants among local governments in the economy. A criterion for the allocation efficiency would be equality of the marginal productivity of grants across all local governments. However, their measurement is not easy without the associated data like capital stocks of all local economies. This paper suggests a simple method to measure the marginal productivity of capital with easily collected data. The estimation results using this method tell us that government grants have not been allocated efficiently across regional economies in Korea. This paper suggests several basic policy suggestions for efficient allocation of government grants across regional economies.
Abstract
This paper deals with the question of how to allocate central government grants among local governments in the economy. A criterion for the allocation efficiency would be equality of the marginal productivity of grants across all local governments. However, their measurement is not easy without the associated data like capital stocks of all local economies. This paper suggests a simple method to measure the marginal productivity of capital with easily collected data. The estimation results using this method tell us that government grants have not been allocated efficiently across regional economies in Korea. This paper suggests several basic policy suggestions for efficient allocation of government grants across regional economies.
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