Analysis the Model of Provincial Capital Funds Allocation in Iran: Efficiency-Based and Equality-Based Approach

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IZADKHASTI HOJJAT

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Title

Analysis the Model of Provincial Capital Funds Allocation in Iran: Efficiency-Based and Equality-Based Approach

Author(s)

IZADKHASTI HOJJAT | Issue Writer Certificate

Keywords

Provincial BudgetingQ1

Capital fundsQ1

Efficiency-BasedApproachQ1

Equal-Based ApproachQ1

Abstract

The method of allocating regional government Capital funds play an important role in defending, reducing inequality and ultimately regional sustainable development. Therefore, there is a high sensitivity to the financial behavior of the government, especially in the allocation of provincial Capital funds. Accordingly, in this research, is discussed an analysis the model of provincial capital allocation with efficiency-based and Equal-Based Approach in the period (2005-2016). The specification of the provincial capital allocation model has based on the generalization of the mathematical model of the Castels and Sole-Olle (2005) and Sole-Olle (2013), budget allocation. The results show that an increase in government spending expenditure reducing provincial capital credits. Also, the allocation of Capital funds was efficiency-bases and has been mostly allocated to provinces that have produced higher production. In addition, inequality in regional production has had a negative effect on the allocation of government Capital funds. As a result, the allocation of provincial Capital funds was not equality-based. Therefore, a review of provincial budget allocation is necessary.

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APA: Copy

IZADKHASTI, HOJJAT. (2019). Analysis the Model of Provincial Capital Funds Allocation in Iran: Efficiency-Based and Equality-Based Approach. JOURNAL OF ECONOMIC STUDIES AND POLICIES, 6(1 (11) ), 131-154. SID. https://sid.ir/paper/392559/en

Vancouver: Copy

IZADKHASTI HOJJAT. Analysis the Model of Provincial Capital Funds Allocation in Iran: Efficiency-Based and Equality-Based Approach. JOURNAL OF ECONOMIC STUDIES AND POLICIES[Internet]. 2019;6(1 (11) ):131-154. Available from: https://sid.ir/paper/392559/en

IEEE: Copy

HOJJAT IZADKHASTI, “Analysis the Model of Provincial Capital Funds Allocation in Iran: Efficiency-Based and Equality-Based Approach,” JOURNAL OF ECONOMIC STUDIES AND POLICIES, vol. 6, no. 1 (11) , pp. 131–154, 2019, [Online]. Available: https://sid.ir/paper/392559/en

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