Explaining the distribution of fiscal transfers between Belgian regions: The effect of political representation
This paper investigates the role of political representation in explaining regional variation in fiscal transfers in Belgium. Using Eurostat data for the years 1995 to 2008, we find that on average per capita cash fiscal transfers –consisting of the net amount of federal income taxes and social security contributions paid and social security benefits received- to a Belgian province increase by between 12 and 36 euro per capita and per year for every minister originating from that province. This represents about 10 to 30 percent of the variation in per capita transfers to a province over time. This result is robust to controlling for economic and demographic variables that are important determinants of transfers, i.e. (gross) income per capita, the unemployment rate, and the proportion of the population above the retirement age.
|Date of creation:||2011|
|Contact details of provider:|| Web page: https://feb.kuleuven.be/VIVES/vivesenglish/general/|
When requesting a correction, please mention this item's handle: RePEc:ete:vivwps:25. 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: (library EBIB)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 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.