On the Size and Determinants of Inter-regional Redistribution in European Countries over the Period 1995-2009
AbstractThe aim of this paper is to analyse cross-country differences in the degree of inter-regional redistribution achieved by means of taxes and expenditures in 21 European countries over the period 1995-2009. We rely on a standard approach based on the observation and comparison of both primary and disposable household income at regional scale. Once the redistributive effect in each country is quantified, we try to explain the drivers of cross-country time-series differences. According to our estimates, cross-national standard deviation is significant and much higher than time variation. Secondly, inter-regional redistribution is strongly and positively related to personal redistribution by means of taxes and social benefits in cash; and is negatively related to both the extent of regional disparities in primary income and to the degree of political and fiscal decentralization.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 45406.
Date of creation: 10 Mar 2013
Date of revision:
Inter-regional redistribution; regional fiscal imbalance; European Union;
Other versions of this item:
- Santiago Lago-Peñas & Albino Prada & Alberto Vaquero, 2013. "On the Size and Determinants of Inter-regional Redistribution in European Countries over the Period 1995-2009," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1304, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-03-30 (All new papers)
- NEP-EUR-2013-03-30 (Microeconomic European Issues)
- NEP-GEO-2013-03-30 (Economic Geography)
- NEP-PBE-2013-03-30 (Public Economics)
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