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Vertical fiscal imbalances and fiscal performance in advanced economies

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  • Eyraud, Luc
  • Lusinyan, Lusine

Abstract

The paper examines empirically, using a measure of “vertical fiscal imbalances” (VFI), the relationship between overall fiscal performance and the financing structure of subnational governments. It presents stylized facts regarding the size, evolution, and components of measured VFI using data from 28 OECD countries. On average, the general government fiscal balance is found to improve by 1 percent of GDP for each 10 percentage point reduction in VFI.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Monetary Economics.

Volume (Year): 60 (2013)
Issue (Month): 5 ()
Pages: 571-587

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Handle: RePEc:eee:moneco:v:60:y:2013:i:5:p:571-587

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Web page: http://www.elsevier.com/locate/inca/505566

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Cited by:
  1. Salvador Barrios & Diego Martínez, 2014. "Fiscal equalisation schemes and sub-central government borrowing," Working Papers 1401, Universidade de Vigo, GEN - Governance and Economics research Network.
  2. Aldasoro, Iñaki & Seiferling, Mike, 2014. "Vertical fiscal imbalances and the accumulation of government debt," SAFE Working Paper Series 61, Research Center SAFE - Sustainable Architecture for Finance in Europe, Goethe University Frankfurt.
  3. Caroline-Antonia Goerl & Mike Seiferling, 2014. "Income Inequality, Fiscal Decentralization and Transfer Dependency," IMF Working Papers 14/64, International Monetary Fund.

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