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Despite existence of a constitutional demarcation of functions and finances between the centre and the states, it is alleged that the centre-state funds transfer systems in India have a political bargaining aspect that goes beyond the normative considerations. This paper makes an attempt to investigate if the political system allows to evolve a simple, equitable, objective and rule-based system of transfers. The aim of this paper is to explore the political economic determinants of discretionary fiscal transfers in India.

This paper is based on a panel data set of 28 Indian states for the period 2001–2014. After diagnostic checking for fixed effects/random effects, the authors prefer to use fixed effects regression with Driscoll–Kraay standard errors and Arellano–Bover/Blundel and Bond system estimation model that uses moment conditions in which lagged first differences of the dependent variable are instruments for the level equation.

The findings of this study reveal that fiscal performance, economic capacity and political alliance are significant but some other political determinants such as bargaining power and election years are not significant in influencing discretionary transfers.

Considering the limited availability of literature on federal finance, the present paper is an addition to the existing research, especially on a crucial issue concerning extra-constitutional fiscal transfers in India. Analysing a balanced panel comprising all the Indian states and examining the role of various political-economic determinants makes this paper topical.

This study investigates the impact of political alignment on intergovernmental transfers to the Brazilian unified health system (SUS). The authors analyzed both automatic transfers based on pre-established rules and discretionary transfers, using two criteria of political alignment between mayors and the central government.

For the empirical analysis the authors used regression-discontinuity design (RDD) and the outcomes of close elections between 2001 and 2017.

The results indicate positive and statistically significant effects of party alignment on the two transfer categories, especially discretionary transfers, but also on transfers based on pre-established rules. The effect of direct party alignment, when mayors and the president are from the same party, is greater than that resulting from coalitions established in municipal and federal elections.

The positive effect of party alignment was found both in discretionary transfers (those that do not have previously established rules) and some non-discretionary transfers (although they have previously defined regulations). A part of these regulations depends on production capacity and on taking part in programs promoted by the central government, which may produce entropy in the financing system, and a margin to benefit political allies. In the case of the SUS system, it is possible that this entropy is greater in the basic health care category than in the moderate and high complexity one, allowing a higher margin for discretion in transfers allocated to the former. Stricter rules associated to basic health care transfers would be desirable.

In Brazil, stricter rules and monitoring associated to basic healthcare intergovernmental transfers would be desirable.

The results may inspire some improvement in the mechanisms that govern the distribution of resources to basic healthcare in Brazil, improving social welfare by improving social justice in the distribution of resources to basic healthcare.

The authors does not know any other study about the impact of party alignment on the distribution of intergovernmental transfers to the Brazilian unified health system.

The purpose of this paper is to formulate a new theory of corruption based on the discretionary decisions of the government and the distribution of income in the economy, where corruption pays taxes and is in the legal channels of the economy.

The methodology is the practical exploration, based on events in the current Argentine economy, where this theory of corrupt phenomena is fulfilled, changing the approach to corruption, transforming corruption into legal.

The document concludes that the model is applicable to any country in the world, given the conditions of the theory formulated.

There is a paradigm shift, it transforms corruption into legal.

In this new theory of great corruption, the consequence is that it is very difficult to combat it, because it is developed based on legal, regulatory and ethical norms.

The social implications are through discretionary decisions of governments, large inequitable income redistributions, in favour of interest groups, pressure groups, private companies and the same state, with negative social consequences for the population.

This theory is original; it has not been formulated in the study of the types of corruption in the world.

This paper produces a comprehensive assessment of income redistribution to the working-age population, covering OECD countries over the last two decades. Redistribution is quantified as the relative reduction in market income inequality achieved by personal income taxes (PIT), employees’ social security contributions, and cash transfers, based on household-level micro-data. A detailed decomposition analysis uncovers the respective roles of size, tax progressivity, and transfer targeting for overall redistribution, the respective role of various categories of transfers for transfer redistribution; as well as redistribution for various income groups. The paper shows a widespread decline in redistribution across the OECD, both on average and in the majority of countries for which data going back to the mid-1990s are available. This was primarily associated with a decline in cash transfer redistribution while PIT played a less important and more heterogeneous role across countries. In turn, the decline in the redistributive effect of cash transfers reflected a decline in their size and in particular by less redistributive insurance transfers. In some countries, this was mitigated by more redistributive assistance transfers but the resulting increase in the targeting of total transfers was not sufficient to prevent transfer redistribution from declining.

The purpose of this paper is to examine resource allocation under the centrally sponsored scheme Sarva Shiksha Abhiyan (SSA) and its impact on development of elementary education in India. First, the author describes the current educational disparity across states in terms of state funding. Second, the author shows that interstate disparities in education resources have more to do with capacity of states to finance elementary education. For this, the author examines funding mechanism under SSA, focusing on principles of adequacy and absorptive rates. Third, the author analyzes the impact of additional funding on the progress of elementary education across states. Fourth, the author demonstrates how funding under SSA reinforces rather than reduces interstate disparity in school funding. Finally, the author concludes with certain policy implications for reforming federal transfers in Right to Education (RTE)-SSA, which can easily be extended to Rashtria Madhya Shiksha Abhiyan (RMSA) to be more responsive to educational inadequacy, effort and capacity across states.

The author uses box plots for illustrating interstate disparity across various indicators on financing and growth of elementary education. Box plots are good at portraying extreme values and illustrate differences between distributions. Because the thrust of the paper is examining difference in distribution across and within states, box plots appropriately portray the distribution of both. Further, coefficient of variation is estimated in education funding and its impact variables.

Interstate disparity in additional to the funding of SSA through discretionary transfers is examined by looking at two principles of inter-governmental transfers, viz., adequacy and absorptive rates. In a way, it appears that the educationally backward states getting the highest shares and also as per the requirement of the child population, but not necessarily so in terms of their relative proportions of enrolment, schools and teachers. Yet another revelation is that actual absorptive rates are much less than apparent absorptive rates. Unambiguously, additional resources coming from the Center for Development of Education can have a positive influence only after states have achieved a certain threshold level of absorptive capacities. As evidenced, fiscal disability is not compensated by transfers via SSA, as matching shares are uniform across states.

One significant limitations of the study is its use of administrative data. Often, administrative data from developing countries especially on social sector like education report inflated figures. The study uses primarily such but published secondary data sources.

Finally, the author suggests certain policy implications for reforming federal role in the current RTE-SSA, which can easily be extended to RMSA, a CSS in secondary education, to be more responsive to state effort and capacity.

Though SSA attempts to address regional imbalance, the accumulated initial advantage of better-off states with uniform norms under SSA funding widens the interstate disparity rather than reduce it. It is, hence, mandated to look at building capacities and enable states for a level-playing field.

It adds value to existing studies in two ways: rarely studies examine SSA expenditures and its impact on development and financing of elementary education, and examine a question on horizontal equalization mechanism whether additional allocation under SSA induce or reduce interstate disparity.

Introduction: The current study examines the relationship of reciprocity and the knowledge sharing behavior (KSB) with the mediating role of organizational commitment.

Aim: The purpose of this chapter is to examine linkages between reciprocity and KSB in Pakistani Pharmaceutical industry basing on social exchange theory (SET) (Blau, 1964). Employees’ affective and normative organizational commitments were proposed as mediator to explain these relationships.

Method: Data were collected using Survey Questionnaires from a sample of 287 managers and staff of sales department of different pharmaceutical firms in Rawalpindi and Islamabad, Pakistan. This is an explanatory study with a quantitative approach. KSB model was developed and tested using a two-stage analysis. Initially, path analysis using AMOS was carried out followed by mediation through process analysis.

Findings: Affective and normative commitment was found to be mediating between reciprocity and KSB using SET.

Originality of the Study: Few empirical studies have analyzed the effects of reciprocity on KSB, especially in context of pharmaceutical industry. Mediation of employee’s commitment could provide new insights to management practitioners in fostering KSB.

Implications: The finding will allow organizations in general and pharmaceutical firms in particular, to focus more on commitment toward their employee as a reciprocal benefit for improving knowledge sharing culture in their organizations.

The purpose of this paper is to find the relationship between local direct elections and the change in social spending, controlling for GDP per capita, revenues and wide-range socio-welfare indicators at the regional level.

This research uses a model of time-series cross-sectional panel data set for 33 provinces in Indonesia from 2001 to 2012.

The main finding of this research is that the political budget cycle does exist in Indonesia. Incumbents responded to the direct elections more sensitively rather than to other variables in the model. The most important variables that are significant in the model are not only direct election but also inter-governmental grants. Interestingly, the local economy (as measured by GDP per capita) does not clearly exhibit a meaningful impact.

Although the importance of decentralisation in Indonesia is actually at the regency level, obtaining the data is really challenging. Therefore the exercise on this paper is currently limited only for the provincial level.

This finding conveys the message that there is large room for improvement in inter-governmental transfer formulation, more importantly to the regions where they still entail significant budget support from central government. In addition, transfers during specific periods such as elections need to be modified to avoid the misappropriation of local budget and to mitigate the adverse impact of PBC. The formulation of inter-governmental transfers is pivotal in reducing over-dependence to the central government funding and to ensure the effectiveness of budget devolved at the local level.

To the author’s understanding, the paper is the first to discuss the presence of the political budget cycle on social protection programs in Indonesia. The expected contribution of the current work is twofold: Firstly, the author used a recent data set hosted by the World Bank (INDO-DAPOER). Secondly, the findings are relevant to the discussion within the sphere of development studies and political science.

The chapter explains how and why the Toronto District School Board (TDSB)'s Safe Schools policy has moved from a zero tolerance approach to progressive discipline and prevention and examines the outcomes for racialized students.

The chapter draws on findings from a critical policy analysis of the TDSB's Safe Schools policy cycle and its connections to various provincial policy cycles through a conceptual policy web.

The TDSB's transition from a zero tolerance approach to discipline to a combination of progressive discipline and prevention has arisen from complaints against the board and the government of Ontario filed by Ontario's Human Rights Commission (OHRC), the shooting death of a student in a TDSB high school and changing legislation. Although suspension and expulsions rates have decreased since changes were introduced, the board's discipline policies still appear to have a disproportionately negative impact on racialized students. The board and province's reluctance to collect race-based data in relation to suspensions and expulsions makes it difficult, yet not impossible, to track progress towards equitable policy outcomes.

Adopting a progressive discipline approach to maintaining safe schools can help keep more students in school without compromising school safety. However, Safe Schools policy includes both texts and practices so equitable outcomes are not guaranteed by rewriting formal policy texts.

Very little attention has been paid to transfer pricing issues in the financial services sector Europe‐wide. This article reports on transfer pricing choices of UK deposit‐taking institutions. It is based on the results of an exploratory survey carried out on UK‐based banks and building societies. The main aim is to investigate their transfer pricing methods and objectives as well as the structure and line of responsibility for their transfer pricing decisions. The results of the survey reveal that the achievement of overall corporate goals is the highest ranked transfer pricing objective. Market pricing is the most widely used method among the institutions. Salient differences were however found between the transfer pricing choices of banks, on the one hand, and building societies, on the other.