IDEAS home Printed from https://ideas.repec.org/p/cat/dtecon/dt201314.html
   My bibliography  Save this paper

The Common Municipal Fund: What is the role in the convergence of local incomes?

Author

Listed:
  • Yasna Cortés Garriga

    () (IDEAR - Master in Regional Sciences - Department of Economics, Universidad Católica del Norte - Chile)

  • Dusan Paredes Araya

    () (IDEAR - Master in Regional Sciences - Department of Economics, Universidad Católica del Norte - Chile)

Abstract

This paper analyzes the role of FCM in the convergence process of the income governments with a panel data of 345 municipalities for the period between 2001 and 2011. Using quasi-experiments and dynamic equations demonstrated that the FCM doesn’t have a significant effect in the increase of the convergence speed, evidencing the ineffective of this territorial policy in the reduction of disparities in long term. The weak develop of the decentralization and the low incentives of the municipalities to obtain own resources, promotes the emergence of strategic behaviors that distort the redistributive effect of the FCM in municipalities, decreasing its impact in the reduction of territorial disparities in Chile.

Suggested Citation

  • Yasna Cortés Garriga & Dusan Paredes Araya, 2013. "The Common Municipal Fund: What is the role in the convergence of local incomes?," Documentos de Trabajo en Economia y Ciencia Regional 45, Universidad Catolica del Norte, Chile, Department of Economics, revised Apr 2013.
    • Handle: RePEc:cat:dtecon:dt201314
    as

    Download full text from publisher

    File URL: https://sites.google.com/a/ucn.cl/wpeconomia/archivos/WP2013-14.pdf
    File Function: First version, 2013
    Download Restriction: no

    References listed on IDEAS

    as
    1. Cristian F Sepulveda & Jorge Martinez-Vazquez, 2011. "The Consequences of Fiscal Decentralization on Poverty and Income Equality," Environment and Planning C, , vol. 29(2), pages 321-343, April.
    2. Stephen Bond & Anke Hoeffler & Jonathan Temple, 2001. "GMM Estimation of Empirical Growth Models," Economics Papers 2001-W21, Economics Group, Nuffield College, University of Oxford.
    3. Vassilis Tselios & Andrés Rodríguez-Pose & Andy Pike & John Tomaney & Gianpiero Torrisi, 2012. "Income inequality, decentralisation, and regional development in Western Europe," Environment and Planning A, Pion Ltd, London, vol. 44(6), pages 1278-1301, June.
    4. Damiaan Persyn & Koen Algoed, 2009. "Interregional redistribution, growth and convergence," Working Papers VIVES Research Centre for Regional Economics 4, KU Leuven, Faculty of Economics and Business, VIVES Research Centre for Regional Economics.
    5. Sergio J. Rey & Mark V. Janikas, 2005. "Regional convergence, inequality, and space," Journal of Economic Geography, Oxford University Press, vol. 5(2), pages 155-176, April.
    6. Andrés Rodríguez-Pose & Roberto Ezcurra, 2010. "Does decentralization matter for regional disparities? A cross-country analysis," Journal of Economic Geography, Oxford University Press, vol. 10(5), pages 619-644, September.
    7. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    8. Caselli, Francesco & Esquivel, Gerardo & Lefort, Fernando, 1996. "Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics," Journal of Economic Growth, Springer, vol. 1(3), pages 363-389, September.
    9. Ernesto Crivelli, 2012. "Local governments’ fiscal balance and privatization in transition countries," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 20(4), pages 677-703, October.
    10. Pranab Bardhan, 2002. "Decentralization of Governance and Development," Journal of Economic Perspectives, American Economic Association, vol. 16(4), pages 185-205, Fall.
    11. Stephen Bond & Anke Hoeffler, 2001. "GMM Estimation of Empirical Growth Models," Economics Series Working Papers 2001-W21, University of Oxford, Department of Economics.
    12. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Descentralización; convergencia; disparidades regionales; panel de datos.;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cat:dtecon:dt201314. 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: (Benjamin Jara). General contact details of provider: http://edirc.repec.org/data/ieucncl.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.