types of VFAs: 1. Fiscal asymmetry with fiscal imbalance: Vertical Fiscal Imbalance (VFI). This means inappropriate allocation of revenue powers and spending responsibilities. This state can be remedied by reassignment of revenue raising powers. 2. Fiscal asymmetry without fiscal imbalance but with a fiscal gap: Vertical Fiscal Gap (VFG). This means a desirable revenue-expenditure asymmetry but with a fiscal gap to be closed. This state can be remedied by re-calibration of federal transfers. 3. Fiscal asymmetry without fiscal imbalance and without fiscal gap: Vertical Fiscal Difference (VFD). This means a desirable revenue-expenditure asymmetry without a fiscal gap ( i.e. gap is closed). This is a state of fiscal asymmetry where there is "no imbalance and no gap" and thus needs no remedial measure. Further extending the conceptual analytic framework presented by Chanchal Kumar Sharma (2012) which according to Bev Dahlby and Jonathan Rodden provides the most extensive review on the vertical fiscal gap and vertical fiscal imbalance concepts, the authors develop a “political economy model of the VFI and VFG in a federation (see Dahbly and Rodden 2013). See also Fiscal federalism Equalization payments Cyclical asymmetry Nations: Fiscal imbalance in Australia Fiscal imbalance in Canada Fiscal imbalance in Nigeria Further reading Bird, R. M. (2012). Subnational taxation in large emerging countries: BRIC plus one, International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1201, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University. References Fiscal federalism Fiscal policy Federalism