Explaining the distribution of fiscal transfers between Belgian regions: The effect of political representation
AbstractThis paper investigates the role of political representation in explaining regional variation in fiscal transfers in Belgium. Using Eurostat data for the years 1995 to 2008, we find that on average per capita cash fiscal transfers –consisting of the net amount of federal income taxes and social security contributions paid and social security benefits received- to a Belgian province increase by between 12 and 36 euro per capita and per year for every minister originating from that province. This represents about 10 to 30 percent of the variation in per capita transfers to a province over time. This result is robust to controlling for economic and demographic variables that are important determinants of transfers, i.e. (gross) income per capita, the unemployment rate, and the proportion of the population above the retirement age.
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 InfoPaper provided by Katholieke Universiteit Leuven, Faculteit Economie en Bedrijfswetenschappen, Vives in its series Vives discussion paper series with number 25.
Date of creation: 2011
Date of revision:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Damiaan Persyn).
If references are entirely missing, you can add them using this form.