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The drivers of interregional policy choices: Evidence from Italy

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  • Padovano, Fabio

Abstract

Theoretical developments in political economy analyses of intergovernmental transfers identify several factors previously ignored in the empirical literature and emphasize the importance of institutional details. Combined, these two developments create a degrees of freedom problem and make cross country samples less meaningful. This paper circumvents these problems by examining an Italian regional panel that minimizes the set of institutional conditioning factors and is large enough to examine a comprehensive set of explanatory variables. The estimates confirm the relevance of most political determinants and of standard economic and socio-demographic determinants of interregional redistribution. Differences in type of expenditures and intergovernmental relations are also considered.

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Bibliographic Info

Article provided by Elsevier in its journal European Journal of Political Economy.

Volume (Year): 28 (2012)
Issue (Month): 3 ()
Pages: 324-340

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Handle: RePEc:eee:poleco:v:28:y:2012:i:3:p:324-340

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Web page: http://www.elsevier.com/locate/inca/505544

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Keywords: Intergovernmental transfers; Political determinants;

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Cited by:
  1. Kappeler, Andreas & Solé-Ollé, Albert & Stephan, Andreas & Välilä, Timo, 2013. "Does fiscal decentralization foster regional investment in productive infrastructure?," European Journal of Political Economy, Elsevier, vol. 31(C), pages 15-25.
  2. Vítor Castro & Rodrigo Martins, 2013. "Is There Duration Dependence in Portuguese Local Governments’ Tenure?," GEMF Working Papers 2013-04, GEMF - Faculdade de Economia, Universidade de Coimbra.
  3. Giannola, Adriano & Scalera, Domenico & Petraglia, Carmelo, 2014. "Net fiscal flows and interregional redistribution in Italy: a long run perspective (1951-2010)," MPRA Paper 57371, University Library of Munich, Germany.
  4. Fabio Padovano, 2011. "Causes and Consequences of Bailing out Expectations of Subcentral Governments: Theory and Evidence from the Italian Regions," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201128, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
  5. Buiatti, Cesare & Carmeci, Gaetano & Mauro, Luciano, 2014. "The origins of the public debt of Italy: Geographically dispersed interests?," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 43-62.

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