Impact of Intergovernmental Transfers

Research Center of the University of the Pacific
John Gershman
Giovanna Paredes

Established in 1972, the Research Center of the University of the Pacific (CIUP) is affiliated with the University of the Pacific in Lima, Peru. Its principal mission is to study the most pressing economic issues and social development challenges that exist in Peru. The Capstone student worked on several projects with the University, primarily on the topic of fiscal decentralization. The student’s main project was analyzing the effects that intergovernmental transfers have on the fiscal behavior of local governments in Peru. In Peru, transfers help local governments finance both their current and capital expenditures. However, both provincial and municipal governments have come to depend on transfers from the central government to finance their expenditures rather than to rely on their own source revenue. The Capstone student was part of a team that examined the relationship between intergovernmental transfers and fiscal behavior. In addition, the student translated existing documents on the subject matter into English.