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Regional Redistribution and Stabilization by the Centre in Canada, France, the United Kingdom and the United States: New Estimates Based on Panel Data Econometrics

Author

Listed:
  • Jacques Mélitz

    (School of Management & Languages - HWU - Heriot-Watt University [Edinburgh])

  • Frédéric Zumer

    (LARGEPA - Laboratoire de recherche en sciences de gestion Panthéon-Assas - Université Paris-Panthéon-Assas)

Abstract

This paper produces estimates of regional redistribution and stabilization through the central government budget in Canada, France, the United Kingdom and the United States. The estimates rest on panel data econometrics and an adherence to certain accounting principles that have occasionally been violated in the past. As a result of the statistical method and the accounting, the peak estimates for Canada and the United States in the earlier literature are never attained. In addition, panel data econometrics yields estimates of stabilization which are entirely reasonable for France and the United Kingdom, whereas the estimates based on the previous literature are not so. Regional stabilization through the central government budget emerges as close to 20% in France, the United Kingdom and the United States, but only 10–14% in Canada.

Suggested Citation

  • Jacques Mélitz & Frédéric Zumer, 2022. "Regional Redistribution and Stabilization by the Centre in Canada, France, the United Kingdom and the United States: New Estimates Based on Panel Data Econometrics," Working Papers hal-03607868, HAL.
    • Handle: RePEc:hal:wpaper:hal-03607868
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    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H87 - Public Economics - - Miscellaneous Issues - - - International Fiscal Issues; International Public Goods

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