TY - JOUR
T1 - Adjusting the Scottish block grant abatement
T2 - the algebra of CM and IPC
AU - Cuthbert, Jim
A2 - Roy, Graeme
PY - 2016/12/13
Y1 - 2016/12/13
N2 - In the Fiscal Settlement negotiations between the UK and Scottish governments earlier this year, one important element of the debate crystallised around the choice between the so-called CM and IPC methods of adjusting the Block Grant abatement. It is well known that the Treasury's preferred method, the CM approach, exposes Scotland to the risk of relative population decline - but the precise mechanism is not well known. This note develops a simple algebraic expression for the difference between the two methods, and explores some of the implications.
AB - In the Fiscal Settlement negotiations between the UK and Scottish governments earlier this year, one important element of the debate crystallised around the choice between the so-called CM and IPC methods of adjusting the Block Grant abatement. It is well known that the Treasury's preferred method, the CM approach, exposes Scotland to the risk of relative population decline - but the precise mechanism is not well known. This note develops a simple algebraic expression for the difference between the two methods, and explores some of the implications.
KW - Scottish economic activity
KW - Scotland
KW - fiscal framework
KW - HMT
UR - http://www.strath.ac.uk/business/economics/fraserofallanderinstitute/
UR - http://www.strath.ac.uk/business/economics/fraserofallanderinstitute/economic_commentary/
M3 - Article
VL - 40
SP - 73
EP - 78
JO - Fraser of Allander Economic Commentary
JF - Fraser of Allander Economic Commentary
SN - 2046-5378
IS - 3
ER -