This contribution presents a case against ‘Devo-max’ or full fiscal autonomy. It argues that the incentives that would accrue to Scottish decision-makers with additional tax devolution need to be balanced by some level of fiscal transfers (or fiscal equalisation) from the UK level in the absence of other mechanisms (such as exchange rate adjustments that jurisdictions with their own currency can have) to act as shock absorbers for economic shocks that would affect Scotland disproportionately.
|Title of host publication||Beyond Smith|
|Subtitle of host publication||Contributions to the Continuing Process of Scottish Devolution|
|Place of Publication||Edinburgh|
|Number of pages||4|
|Publication status||Published - 2014|
- fiscal autonomy