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The drivers of interregional policy choices: Evidence from Italy

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  • Padovano, Fabio

Abstract

Theoretical developments in political economy analyses of intergovernmental transfers identify several factors previously ignored in the empirical literature and emphasize the importance of institutional details. Combined, these two developments create a degrees of freedom problem and make cross country samples less meaningful. This paper circumvents these problems by examining an Italian regional panel that minimizes the set of institutional conditioning factors and is large enough to examine a comprehensive set of explanatory variables. The estimates confirm the relevance of most political determinants and of standard economic and socio-demographic determinants of interregional redistribution. Differences in type of expenditures and intergovernmental relations are also considered.

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  • Padovano, Fabio, 2012. "The drivers of interregional policy choices: Evidence from Italy," European Journal of Political Economy, Elsevier, vol. 28(3), pages 324-340.
  • Handle: RePEc:eee:poleco:v:28:y:2012:i:3:p:324-340
    DOI: 10.1016/j.ejpoleco.2012.01.003
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    Cited by:

    1. Guccio, Calogero & Mazza, Isidoro, 2014. "On the political determinants of the allocation of funds to heritage authorities," European Journal of Political Economy, Elsevier, vol. 34(C), pages 18-38.
    2. Kappeler, Andreas & Solé-Ollé, Albert & Stephan, Andreas & Välilä, Timo, 2013. "Does fiscal decentralization foster regional investment in productive infrastructure?," European Journal of Political Economy, Elsevier, vol. 31(C), pages 15-25.
    3. Andrew Q. Philips, 2016. "Seeing the forest through the trees: a meta-analysis of political budget cycles," Public Choice, Springer, vol. 168(3), pages 313-341, September.
    4. Fabio Padovano, 2014. "Distribution of transfers and soft budget spending behaviors: evidence from Italian regions," Public Choice, Springer, vol. 161(1), pages 11-29, October.
    5. Reingewertz, Yaniv, 2014. "Fiscal Decentralization - a Survey of the Empirical Literature," MPRA Paper 59889, University Library of Munich, Germany.
    6. Castro, Vítor & Martins, Rodrigo, 2013. "Is there duration dependence in Portuguese local governments' tenure?," European Journal of Political Economy, Elsevier, vol. 31(C), pages 26-39.
    7. Jennes, Geert & Persyn, Damiaan, 2015. "The effect of political representation on the geographic distribution of income: Evidence using Belgian data," European Journal of Political Economy, Elsevier, vol. 37(C), pages 178-194.
    8. Buiatti, Cesare & Carmeci, Gaetano & Mauro, Luciano, 2014. "The origins of the public debt of Italy: Geographically dispersed interests?," Journal of Policy Modeling, Elsevier, vol. 36(1), pages 43-62.
    9. Fabio Padovano, 2011. "Causes and Consequences of Bailing out Expectations of Subcentral Governments: Theory and Evidence from the Italian Regions," Economics Working Paper Archive (University of Rennes 1 & University of Caen) 201128, Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS.
    10. Giannola, Adriano & Petraglia, Carmelo & Scalera, Domenico, 2016. "Net fiscal flows and interregional redistribution in Italy: A long-run perspective (1951–2010)," Structural Change and Economic Dynamics, Elsevier, vol. 39(C), pages 1-16.

    More about this item

    Keywords

    Intergovernmental transfers; Political determinants;

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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