摘要：Inter-jurisdictional differences originate in choices or situation disparities. Equalization refers to the latter only. Recent policies separate disparities of revenue potential from expenditure needs in various formula-based vertical or/and horizontal financial transfers. Whereas the RTS method (for "Representative Tax System) is common for revenue equalization, different concepts have been used to express disparities associated with decentralized public expenditures. Needs or costs disparities and expenditure disabilities are usually given as rationale for equalization. The paper explores four issues in the two types of equalization: funding, measures of disparities, formulas and possible additional policy variables. It also questions the rationale of vertical versus horizontal equalization transfers. The objective of the paper is to organize the core questions around these issues in a coherent ¨C and if necessary iterative ¨C sequence of reasoning with the aim of producing guidelines for policy implementation
