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Net fiscal flows and interregional redistribution in Italy: A long-run perspective (1951–2010)

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  • Giannola, Adriano
  • Petraglia, Carmelo
  • Scalera, Domenico

Abstract

This paper carries out a long-run reconstruction of a discontinuous time series of net fiscal flows for Italian regions and macro-regions from 1951 to 2010. This evidence is the basis to put forward an assessment on the intensity of interregional redistribution operated by public sector. The main result of the paper is that even if the amount of resources transferred to Southern Italy from the rest of the country has been significant and increasing over time (at least up to the end of the 1990s), redistribution cannot be judged disproportionately large, in the light of income differences among regions, the public commitment in regional policies and the constitutional principles of equal access of citizens to the basic public services. Secondly, historical analysis of data and inspection of facts indicate that the relationship between the intensity of interregional redistribution and the financial effort of regional policies is weak. This supports the view that increasing NFFs have little served the purpose of regional convergence; rather, the rise of imbalances seems to be mainly connected to the overall escalation of public expenditure, following the institutional break occurred in mid-1970s with the establishment of Regional Governments.

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  • 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.
  • Handle: RePEc:eee:streco:v:39:y:2016:i:c:p:1-16
    DOI: 10.1016/j.strueco.2016.04.005
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    2. Adriano Giannola & Carmelo Petraglia & Domenico Scalera, 2017. "Residui fiscali, bilancio pubblico e politiche regionali," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2017(2), pages 33-57.
    3. Salvatore Villani, 2019. "Differentiated Fiscal Regionalism. The Privileges of the Autonomy and the Problems of Southern Italy," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 3-4, pages 963-996.
    4. A. Giannola & C. Petraglia, 2016. "Southern Italy and «Crisis» of Regional Policies," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1, pages 97-120.
    5. Bonanno, Graziella & D’Orio, Giovanni & Lombardo, Rosetta, 2020. "Generating well-being and efficiency: Evidence from Italy," Economic Analysis and Policy, Elsevier, vol. 65(C), pages 262-275.
    6. Nifo, Annamaria & Ruberto, Sabrina & Vecchione, Gaetano, 2016. "Does institutional quality matter for lending relationships? Evidence from Italy," MPRA Paper 75279, University Library of Munich, Germany.
    7. Adriano Giannola & Riccardo Padovani & Carmelo Petraglia, 2015. "Spending Review e divari regionali in Italia," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2015(1), pages 129-155.
    8. Petraglia, Carmelo & Pierucci, Eleonora & Scalera, Domenico, 2020. "Interregional redistribution and risk sharing through public budget. The case of Italy in times of crisis (2000–2016)," Structural Change and Economic Dynamics, Elsevier, vol. 53(C), pages 162-169.

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    More about this item

    Keywords

    Regional redistribution; Regional convergence; Net fiscal flows; Italy;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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