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Fiscal disparities in Uruguay’s regions: the role of a new system of intergovernmental equalization transfers

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  • Urraburu Bordon, Joana
  • Castro Scavone, Pablo
  • Muinelo-Gallo, Leonel

Abstract

This article conducts an empirical analysis of the role of intergovernmental transfers in a group of regions (departments) in Uruguay during the period 2006–2014. It examines the structure and evolution of regional fiscal disparities and the equalizing effects of the current transfer system. It then proposes an innovative methodology for simulating the effects of a new system of equalization transfers. The main finding is that implementing this new system would help to consolidate greater territorial fiscal homogeneity in Uruguay.

Suggested Citation

  • Urraburu Bordon, Joana & Castro Scavone, Pablo & Muinelo-Gallo, Leonel, 2019. "Fiscal disparities in Uruguay’s regions: the role of a new system of intergovernmental equalization transfers," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    • Handle: RePEc:ecr:col070:45415
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    2. Marta Curto-Grau (Universitat de Barcelona) & Albert Sole-Olle (Universitat de Barcelona) & Pilar Sorribas-Navarro(Universitat de Barcelona), 2012. "Partisan targeting of inter-governmental transfers & state interference in local elections: evidence from Spain," Working Papers in Economics 288, Universitat de Barcelona. Espai de Recerca en Economia.
    3. Marta Curto-Grau & Albert Solé-Ollé & Pilar Sorribas-Navarro, 2012. "Partisan targeting of inter-governmental transfers & state interference in local elections: evidence from Spain," Working Papers 2012/31, Institut d'Economia de Barcelona (IEB).
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    5. Leonel Muinelo-Gallo & Adrián Rodríguez-Miranda & Pablo Castro-Scavone, 2016. "Intergovernmental Transfers and Regional Income Inequalities: An Empirical Analysis of Uruguay," Hacienda Pública Española / Review of Public Economics, IEF, vol. 219(4), pages 9-34, December.
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