지방교부세가 지역의 소득 , 지방세수입 , 재정력에 미치는 영향 = Effects of Unconditional Grants on Regional Income , Tax Revenue , and Local Fiscal Power

다국어 초록 (Multilingual Abstract)

Unconditional grant system is one type of the local finance adjustment system which is operated in order to reduce fiscal difference among jurisdictions and secure the budget to maintain the least administration level of poor local governments. Unconditional grant system leads to the change in income of local jurisdictions, which brings about up and down in local tax revenue and financial power. This paper presents the amount of change in local income specifically using Keynesian Model for simple income determination. Results of this research show that income of Seoul City has decreased, while income of rural areas has increased by the large amount. Income of other large cities and Kyonggido has decreased by the small amount. Thus, the decrease of income in large cities and Kyonggido by unconditional grant system leads to the decrease of local tax revenue in their areas, while the increase of income in other areas brings about the increase in local tax revenue. Such a change of local tax revenue has highly been related to the change in local fiscal power. The results present that fiscal power of Seoul city by unconditional grant system falls from 1.33 to 1.24, while fiscal power of other rural areas rises by 0.04 of average. The number of 0.04 means the effect of increasing fiscal power of rural areas by 0.04 for one year. It shows that unconditional grant system has play a large role of reducing financial differences among jurisdictions.