IDEAS home Printed from https://ideas.repec.org/a/mul/jqyfkm/doi10.1432-91434y2018i1-2p5-52.html
   My bibliography  Save this article

An Analysis of the Proposal on «Differentiated Federalism»

Author

Listed:
  • A. Giannola
  • G. Stornaiuolo

Abstract

This paper focuses on the proposals for the implementation of a new division of functions between the State and the Regions (institutional federalism) that the three Regions (Lombardy, Veneto and Emilia-Romagna) want to obtain using the process envisaged by art. 116, third paragraph, of the Constitution. The second part of this research assesses the effects of the proposals advanced as to their funding (fiscal federalism), once the matters will be devolved to the Regions. The investigation of this lattertopic will use the tool of the «tax surplus », through which we can evaluate the distribution of resources between the different territorial areas of the country and the adequacy of the redistributive function implemented by the State. The estimate of regional tax surpluses in Italy shows a decrease in the redistributive function of the State between 2000 and 2015, especially when the interests enjoyed by citizens owning government bonds are reported within the total expenditure. Finally, this study shows that if the unjustified proposal to allocate to the Regions that will implement differentiated federalism resources not corresponding to the needs (such as the Veneto Proposal) would be accepted, two impacts would occur: the first would affect the horizontal dimension of equalization as it would change the distribution of public resources in favour of the regions that will request more functions; the second would have effects on the vertical scale of equalization as it would reduce the amount of resources available to the central body to implement the redistributive policy envisaged by the Constitution and to finance the minimum functions that will still be left to it.

Suggested Citation

  • A. Giannola & G. Stornaiuolo, 2018. "An Analysis of the Proposal on «Differentiated Federalism»," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1-2, pages 5-52.
    • Handle: RePEc:mul:jqyfkm:doi:10.1432/91434:y:2018:i:1-2:p:5-52
    as

    Download full text from publisher

    File URL: https://www.rivisteweb.it/download/article/10.1432/91434
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.rivisteweb.it/doi/10.1432/91434
    Download Restriction: no
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Adriano Giannola & Carmelo Petraglia & Domenico Scalera, 2017. "Residui fiscali, bilancio pubblico e politiche regionali," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2017(2), pages 33-57.
    2. M. Magnani, 1997. "La ricchezza finanziaria delle famiglie e la bilancia dei pagamenti di parte corrente Nord-Sud (1970-92)," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1, pages 29-68.
    3. Pauly, Mark V., 1973. "Income redistribution as a local public good," Journal of Public Economics, Elsevier, vol. 2(1), pages 35-58, February.
    4. Pica, Federico & Villani, Salvatore, 2010. "Le scelte tributarie del federalismo fiscale. Implicazioni per le Regioni del Mezzogiorno [The Implementation of Fiscal Federalism in Italy. Implications for the Southern Regions]," MPRA Paper 31276, University Library of Munich, Germany, revised 22 Nov 2010.
    5. Hochman, Harold M & Rodgers, James D, 1969. "Pareto Optimal Redistribution," American Economic Review, American Economic Association, vol. 59(4), pages 542-557, Part I Se.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alessandro Bucciol & Laura Cavalli & Paolo Pertile & Veronica Polin & Alessandro Sommacal, 2016. "Redistribution at the local level: the case of public childcare in Italy," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 63(4), pages 359-378, December.
    2. Torrisi, Gianpiero & Pike, Andy & Tomaney, John & Tselios, Vassilis, 2011. "(Re-)exploring the link between devolution and regional disparities in Italy," MPRA Paper 32212, University Library of Munich, Germany.
    3. Erzo F. P. Luttmer, 2001. "Group Loyalty and the Taste for Redistribution," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 500-528, June.
    4. Kolmar, Martin, 1999. "Optimale Ansiedlung sozialpolitischer Entscheidungskompetenzen in der Europäischen Union," Beiträge zur Finanzwissenschaft, Mohr Siebeck, Tübingen, edition 1, volume 7, number urn:isbn:9783161471254, December.
    5. Robin Boadway & Katherine Cuff, 2015. "Tax treatment of bequests when donor benefits are discounted," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 22(4), pages 604-634, August.
    6. George R.G. Clarke, 2003. "The Effect of Medicaid On Cash Assistance To the Aged and Disabled Poor," Public Finance Review, , vol. 31(1), pages 3-43, January.
    7. Schaeffer, Y. & Charlot, S., 2012. "Inequality aversion, income redistribution and economic geography," Working Papers 201204, Grenoble Applied Economics Laboratory (GAEL).
    8. Harold M. Hochman & James D. Rodgers, 1977. "The Simple Politics of Distributional Preference," NBER Chapters, in: The Distribution of Economic Well-Being, pages 71-114, National Bureau of Economic Research, Inc.
    9. Rosenzweig, Mark R. & Wolpin, Kenneth I., 1984. "Externalities, Heterogeneity and the Optimal Distribution of Public Programs: Child Health and Family Planning Interventions," Bulletins 8435, University of Minnesota, Economic Development Center.
    10. Drakopoulos, Stavros A., 2008. "The Concept Of Comparison Income: An Historical Perspective," MPRA Paper 8713, University Library of Munich, Germany.
    11. Cebula, Richard, 1973. "Interstate Migration and the Tiebout Hypothesis: An Analysis According to Race, Sex, and Age," MPRA Paper 49827, University Library of Munich, Germany, revised 01 Feb 1974.
    12. Bouton, Laurent & Gassner, Marjorie & Verardi, Vincenzo, 2008. "Redistributing income under fiscal vertical imbalance," European Journal of Political Economy, Elsevier, vol. 24(2), pages 317-328, June.
    13. Lejour, A. & Verbon, H., 1993. "Capital Mobility and Social Insurance in an Integrated Market," Papers 9379, Tilburg - Center for Economic Research.
    14. Randall G. Holcombe, 2020. "James M. Buchanan’s constitutional project: past and future," Public Choice, Springer, vol. 183(3), pages 371-387, June.
    15. Glazer, Amihai & Konrad, Kai A., 1993. "Ameliorating congestion by income redistribution," Regional Science and Urban Economics, Elsevier, vol. 23(5), pages 579-584, November.
    16. Blankart, Charles B., 1974. "Grenzen der konstitutionellen Eigentumsgarantie," Discussion Papers, Series I 48, University of Konstanz, Department of Economics.
    17. Amihai Glazer & Hiroki Kondo, 2010. "Governmental Transfers Can Reduce a Moral Hazard Problem," Working Papers 101102, University of California-Irvine, Department of Economics.
    18. Dennis Mueller, 1998. "Constitutional Constraints on Governments in a Global Economy," Constitutional Political Economy, Springer, vol. 9(3), pages 171-186, September.
    19. Berthold, Norbert & von Berchem, Sascha, 2005. "Lokale Solidarität: die Zukunft der Sozialhilfe?," Discussion Paper Series 76, Julius Maximilian University of Würzburg, Chair of Economic Order and Social Policy.
    20. Pietrovito, Filomena & Pozzolo, Alberto Franco & Resce, Giuliano & Scialà, Antonio, 2023. "Fiscal decentralization and income (re)distribution in OECD countries’ regions," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 69-81.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:jqyfkm:doi:10.1432/91434:y:2018:i:1-2:p:5-52. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.rivisteweb.it/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.