The Korea Local Administration Review

This study is to analyzes the fiscal equalization effect of metropolitan revenue sharing in 7 metropolitan cities such as Seoul, Busan, Daegu, Incheon, Kwangju, Daejeon and Ulsan. In order to analyzes and compare the fiscal equalization effect of metropolitan revenue sharing, Entropy index, Herfindahl index, Gini Coefficient and Coefficient of Concentration calculated by ‘Free Statistics and Forecasting Software’ are used. The fiscal equalization effect of three types of metropolitan revenue sharing allocation formula are compared so as to suggest the best policy alternatives. The results of this study are as following. First, ‘Linked Adjustment Ratio type’ could most enlarge the fiscal equalization effect of metropolitan revenue sharing in Seoul, and Incheon. Secondly, ‘Comlementary Adjustment Ratio type’ could most enlarge the fiscal equalization effect of metropolitan revenue sharing in such cities as Busan, Daegu, Daejeon and Ulsan. Thirdly, ‘Mixed type’ could most enlarges the fiscal equalization effect in case of Kwangju.   □ Keywords: metropolitan revenue sharing, adjustment ratio, fiscal equalization, coefficient of inequality