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Redistributive effects of regional transfers: a conceptual framework

Author

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  • Julio López-Laborda
  • Antoni Zabalza

Abstract

This paper presents a conceptual framework to analyse the redistributive impact of transfers in the context of a decentralized economy. The framework is illustrated by means of a numerical example that describes an economy with three regions and two levels of government―the central level and the regional level. With this set up, the paper analyses a variety of transfer systems and considers its effects on redistribution using as benchmark the distribution going on in the centralized version of this economy, in which tax capacity is unevenly distributed across the three regions and central government public expenditure is distributed across regions according to their population.

Suggested Citation

  • Julio López-Laborda & Antoni Zabalza, 2018. "Redistributive effects of regional transfers: a conceptual framework," Working Papers 2018-02, FEDEA.
    • Handle: RePEc:fda:fdaddt:2018-02
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    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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