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Regional redistribution and stabilization by the center in Canada, France, the UK and the US:: A reassessment and new tests

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  • Melitz, Jacques
  • Zumer, Frederic

Abstract

This paper re-examines earlier estimates of regional redistribution and stabilization through the central government budget in the US, and produces new estimates of this redistribution and stabilization in the US, Canada, France and the UK. The new estimates rest on panel data econometrics and an adherence to certain accounting principles that have occasionally been violated in the past. As a result of the accounting, the peak estimates for the US and Canada in the earlier literature are never attained. Regional stabilization of personal income through the central government budget emerges as close to 20% in the US, France and the UK, but only 10 to 14% in Canada. In case of gross product instead of personal income accounting, regional stabilization is closer to 10% in the US. As regards France and the UK, the use of panel data econometrics proves essential.
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  • Melitz, Jacques & Zumer, Frederic, 2002. "Regional redistribution and stabilization by the center in Canada, France, the UK and the US:: A reassessment and new tests," Journal of Public Economics, Elsevier, vol. 86(2), pages 263-286, November.
  • Handle: RePEc:eee:pubeco:v:86:y:2002:i:2:p:263-286
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