IDEAS home Printed from https://ideas.repec.org/a/hrs/journl/vxy2018i1p37-45.html
   My bibliography  Save this article

Effects Of Fiscal Consolidation On Regional Economics Resilience: Institutional Design Metters?

Author

Listed:
  • Christophe FEDER

    () (Professor, University of Aosta Valley, Str. Cappuccini, 2, Aosta, Italy)

  • Vinko MUSTRA

    () (Assistant professor, Faculty of economics, business and tourism, University of Split, Cvite Fiskovi?a 5, Split, Croatia)

Abstract

After the Great Recession, in the European Union (EU) emerges an heterogenous level of both national fiscal consolidation and regional economics resilience. The paper uses the EUROSTAT database of EU-27 at NUTS 2 level over the period 2000-2009 to test how fiscal consolidation affects the regional economics resilience. We find that the fiscal consolidation and regional economic resilience are negatively correlated. Moreover, we show that the negative effect of taxation is higher than the positive effect of public spending.

Suggested Citation

  • Christophe FEDER & Vinko MUSTRA, 2018. "Effects Of Fiscal Consolidation On Regional Economics Resilience: Institutional Design Metters?," Regional Science Inquiry, Hellenic Association of Regional Scientists, vol. 0(1), pages 37-45, June.
    • Handle: RePEc:hrs:journl:v:x:y:2018:i:1:p:37-45
    as

    Download full text from publisher

    File URL: http://www.rsijournal.eu/ARTICLES/June_2018/4.pdf
    Download Restriction: no

    More about this item

    Keywords

    After the Great Recession; in the European Union (EU) emerges an heterogenous level of both national fiscal consolidation and regional economics resilience. The paper uses the EUROSTAT database of EU-27 at NUTS 2 level over the period 2000-2009 to test how fiscal consolidation affects the regional economics resilience. We find that the fiscal consolidation and regional economic resilience are negatively correlated. Moreover; we show that the negative effect of taxation is higher than the positive effect of public spending.;

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hrs:journl:v:x:y:2018:i:1:p:37-45. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dimitrios K. Kouzas). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.