A new report has made the case for "fiscal federalism" in Scotland.

The report, published as part of the Allender series, says Scotland should be able to take on greater financial responsibility without the need for independence.

The paper, which challenges assumptions in the argument for "fiscal autonomy", is being presented by two economists Paul Hallwood of the university of Connecticut and Ronald Macdonald from University of Strathclyde.

Their report argues that a closer matching of spending with taxes would better signal the true costs of public spending in terms of taxes raised.

This would create better incentives for politicians to provide public goods and services in quantities and at qualities that voters are willing to pay for.

MacDonald said: "Scotland should start examining fiscal federal financing systems. Moving to a fiscal federalist system in Scotland would mean sacrificing some equity in favour of potentially greater efficiency.

"This could produce an improved allocation of resources in the longer run and with wise decision making ultimately generate additional revenues."

But the authors caution against claims that greater fiscal decentralisation will automatically deliver higher growth.

Former Scottish executive minister Wendy Alexander MSP welcomed the contribution to the debate on the future of devolution.

"This paper demonstrates the way in which Scotland can take more responsibility for its own finances without abandoning the UK. It aims to redefine the debate away from past rhetoric towards a focus on the real choices, the experience of other countries and the economic evidence," she said.

"This is an opportunity to go beyond shallow sound bites. It shows how a form of fiscal federalism might work and what benefits, and risks, it might bring."