Fiscal Decentralization, Commitment and Regional Inequality: Evidence from State-level Cross-sectional Data for the United States
AbstractConventional approaches to fiscal decentralization suggest that decentralization lowers the power of redistribution, but recent theories argue that fiscal decentralization can work as a commitment device. The former effect is argued to cause an increase in inter-county inequality, while the latter suggests a decrease. This article first clarifies the relationship between fiscal decentralization and inter-county inequality by using cross-sectional data for the United States. Our result indicates that the achievement of autonomy by fiscal decentralization in poor (low-income) counties contributes to decreased inter-county inequality, but that this effect is not as large as the dominating adverse effect fiscal decentralization has on rich (highincome) counties.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Journal of Income Distribution in its journal Journal of Income Distribution.
Volume (Year): 18 (2009)
Issue (Month): 1 (March)
Contact details of provider:
Postal: York Hall 327, 2275 Bayview Avenue, Toronto, Ontario M4N 3M6
Web page: http://pi.library.yorku.ca/ojs/index.php/jid/index
More information through EDIRC
fiscal decentralization; inter-county inequality; commitment;
Other versions of this item:
- Nobuo Akai & Masayo Sakata, 2005. "Fiscal Decentralization, Commitment and Regional Inequality: Evidence from State-level Cross-sectional Data for the United States," CIRJE F-Series CIRJE-F-315, CIRJE, Faculty of Economics, University of Tokyo.
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Leonel Muinelo-Gallo & Andreas P. Kyriacou & Oriol Roca-Sagalés, 2013. "Fiscal decentralization and regional disparities: the importance of good governance," Documentos de Trabajo (working papers) 13-03, Instituto de Economia - IECON.
- Christian Lessmann, 2011.
"Regional Inequality and Decentralization - An Empirical Analysis,"
CESifo Working Paper Series
3568, CESifo Group Munich.
- Christian Lessmann, 2012. "Regional inequality and decentralization: an empirical analysis," Environment and Planning A, Pion Ltd, London, vol. 44(6), pages 1363-1388, June.
- Christian Lessmann, 2012. "Regional inequality and decentralization – an empirical analysis," Working Papers 2012/20, Institut d'Economia de Barcelona (IEB).
- Christian Lessmann, 2009.
"Fiscal decentralization and regional disparity: evidence from cross-section and panel data,"
Environment and Planning A,
Pion Ltd, London, vol. 41(10), pages 2455-2473, October.
- Lessmann, Christian, 2009. "Fiscal decentralization and regional disparity: Evidence from cross-section and panel data," Dresden Discussion Paper Series in Economics 08/09, Dresden University of Technology, Faculty of Business and Economics, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Benjamin Nicholls).
If references are entirely missing, you can add them using this form.