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El Fondo Común Municipal: ¿Cuál es el rol en la Convergencia de Ingresos Locales?

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  • Yasna Cortés Garriga

    ()
    (IDEAR - Master in Regional Sciences - Department of Economics, Universidad Católica del Norte - Chile)

  • Dusan Paredes Araya

    ()
    (IDEAR - Master in Regional Sciences - Department of Economics, Universidad Católica del Norte - Chile)

Abstract

This paper analyze the role of FCM in the convergence process of the income governments with a panel data of 345 municipalities for the period between 2001 and 2011. Using quasi-experiments and dynamic equations demonstrated that the FCM doesn’t have a significant effect in the increase of the convergence speed, evidencing the ineffective of this territorial policy in the reduction of disparities in long term. The weak develop of the decentralization and the low incentives of the municipalities to obtain own resources, promotes the emergence of strategic behaviors that distort the redistributive effect of the FCM in municipalities, decreasing its impact in the reduction of territorial disparities in Chile.

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File URL: https://sites.google.com/a/ucn.cl/wpeconomia/archivos/WP2013-14.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by Universidad Catolica del Norte, Chile, Department of Economics in its series Documentos de Trabajo en Economia y Ciencia Regional with number 45.

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Length: 35 pages
Date of creation: Apr 2013
Date of revision: Apr 2013
Handle: RePEc:cat:dtecon:dt201314

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Keywords: Descentralización; convergencia; disparidades regionales; panel de datos.;

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  1. Cristian F Sepulveda & Jorge Martinez-Vazquez, 2011. "The consequences of fiscal decentralization on poverty and income equality," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 29(2), pages 321-343, April.
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  3. Sergio J. Rey & Mark V. Janikas, 2005. "Regional convergence, inequality, and space," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 155-176, April.
  4. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. " Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-89, September.
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  6. Pranab Bardhan, 2002. "Decentralization of Governance and Development," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 185-205, Fall.
  7. Roberto Ezcurra & Andrés Rodríguez-Pose, 2009. "Does decentralization matter for regional disparities? A cross-country analysis," LSE Research Online Documents on Economics 33244, London School of Economics and Political Science, LSE Library.
  8. Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
  9. Stephen Bond & Anke Hoeffler, 2001. "GMM Estimation of Empirical Growth Models," Economics Series Working Papers 2001-W21, University of Oxford, Department of Economics.
  10. Damiaan Persyn & Koen Algoed, 2009. "Interregional redistribution, growth and convergence," Vives discussion paper series 4, Katholieke Universiteit Leuven, Faculteit Economie en Bedrijfswetenschappen, Vives.
  11. Stephen Bond & Anke Hoeffler & Jonathan Temple, 2001. "GMM Estimation of Empirical Growth Models," Economics Papers 2001-W21, Economics Group, Nuffield College, University of Oxford.
  12. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
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