Research interest in Grid computing has grown significantly over the past five years. Management of distributed resources is one of the key issues in Grid computing. Central to management of resources is the effectiveness of resource allocation as it determines the overall utility of the system. The current approaches to brokering in a Grid environment are non-coordinated since application-level schedulers or brokers make scheduling decisions independently of the others in the system. Clearly, this can exacerbate the load sharing and utilization problems of distributed resources due to sub-optimal schedules that are likely to occur. To overcome these limitations, we propose a mechanism for coordinated sharing of distributed clusters based on computational economy. The resulting environment, called Grid-Federation, allows the transparent use of resources from the federation when local resources are insufficient to meet its users' requirements. The use of computational economy meth...