Intrastate Allocations in GRS
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This chapter analyzes how errors in data affect the distribution of GRS funds below the state level. The substate formulas are described in great detail (§5.2), and notation (§5.3) is developed to permit rigorous analysis of the approximate means, variances, and covariances of errors in the substate allocations. Analysis is complicated because the substate allocations must be determined by an iterative algorithm. Since iterative allocation formulas are not uncommon the analytic approach taken should be useful for studying other allocation programs as well.
KeywordsCapita Income Outer Iteration Delta Method Capita Basis County Government
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