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The Redistributive Power of the Central Government Budget

  • Ramón Barberán

    (Universidad de Zaragoza)

  • Núria Bosch

    ()

    (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))

  • Antoni Castells

    ()

    (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))

  • Marta Espasa

    ()

    (Institut d'Economia de Barcelona (IEB); Universitat de Barcelona (UB))

Registered author(s):

    We analyse the redistributive power of the Spanish central government budget to diminish regional disparities in per capita income in the 1991-1996 period. It firstly makes a brief overview of the most relevant empirical studies carried out on this subject, analysing their methodologies and results. Secondly, it estimates the redistributive power of the budgetary policies of the Spanish central government. Its principal interest lies in the fact that the data base used allows the redistributive effect of the main items of revenue and expenditure to be analysed, whereas the majority of studies carried out limit the categories of expenditure to the case of transfers. The results obtained are in line with those from other studies. The redistributive power of the central budget is around 40%, expenditure being much more redistributive than revenue, with the exception of individual income tax.

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    File URL: http://ieb.ub.edu/aplicacio/fitxers/233654ART85.pdf
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    Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2000/6.

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    Length: 37 pages
    Date of creation: 2000
    Date of revision:
    Handle: RePEc:ieb:wpaper:233654art85
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    1. Bayoumi, Tamim & Masson, Paul R, 1994. "Fiscal Flows in the United States and Canada: Lessons for Monetary Union in Europe," CEPR Discussion Papers 1057, C.E.P.R. Discussion Papers.
    2. Rafael Doménech & Antonio Maudes & Juan Varela, 2000. "Fiscal flows in Europe: The redistributive effects of the EU budget," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(4), pages 631-656, December.
    3. Xavier Sala-i-Martin & Jeffrey Sachs, 1991. "Fiscal Federalism and Optimum Currency Areas: Evidence for Europe From the United States," NBER Working Papers 3855, National Bureau of Economic Research, Inc.
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