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Diagnostics of Convergent-Divergent Processes in the Regional Fiscal Policy

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  • Bobkova Alexandra Yurievna

    (Kharkiv National University of Economics)

Abstract

The article conducts analysis of irregularity of distribution of tax resources among towns and districts of the Kharkiv oblast with respect to the income and expenditure sides of the budget on the basis of the convergence theory. Indicators of ?-convergence and models of ?-convergence are used as the instruments of the study and theoretical substantiation of the given indicators are considered in detail. The proposed instruments is approved on the basis of indicators of the tax load on hired employees and also expenditures of local budgets per capita in districts and towns of the Kharkiv oblast. The article reveals the divergent tendency in the Kharkiv oblast, characterised with availability of significant irregularity in development of territories by the tax load indicator, while per capita expenditures of the budgets are close in values, which characterises existence of convergent tendencies in the process of development of territories.

Suggested Citation

  • Bobkova Alexandra Yurievna, 2013. "Diagnostics of Convergent-Divergent Processes in the Regional Fiscal Policy," Business Inform, RESEARCH CENTRE FOR INDUSTRIAL DEVELOPMENT PROBLEMS of NAS (KHARKIV, UKRAINE), Kharkiv National University of Economics, issue 11, pages 113-119.
  • Handle: RePEc:idp:bizinf:y:2013:i:11:p:113_119
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    References listed on IDEAS

    as
    1. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
    2. Xavier Sala-I-Martin, 1997. "Transfers, Social Safety Nets, and Economic Growth," IMF Staff Papers, Palgrave Macmillan, vol. 44(1), pages 81-102, March.
    3. Bourguignon, Francois, 1979. "Decomposable Income Inequality Measures," Econometrica, Econometric Society, vol. 47(4), pages 901-920, July.
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