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Residui fiscali regionali e riforma federalista. Quanto residuerà delle politiche regionali e redistributive?
[Fiscal residua and federalist reform in Italy. Will regional and redistributive policies survive?]

Author

Listed:
  • Giannola, A.
  • Petraglia, C.
  • Scalera, D.

Abstract

This paper criticizes the idea to conceive the fiscal federalist reform in Italy as a tool to empower central-northern regions to retain resources otherwise wasted in the South. We argue that such a view muddles up efficiency and redistribution issues, thus threatening the legitimate inter-regional fiscal flows. To dispute the thesis of excessive transfers to Mezzogiorno regions, we first show that the regional distribution of (both current and capital) government expenditure has systematically penalized the South in the last 15 years. Secondly, for the years 2004-2006, we calculate «benchmark» regional fiscal residua, consistent with the progressive Italian personal taxation (IRPEF), and the announced targets of regional policies (45% of total capital government expenditure to be made in the South). For most centre-northern regions, the actual residua turn out to be lower than the «benchmark» ones.

Suggested Citation

  • Giannola, A. & Petraglia, C. & Scalera, D., 2011. "Residui fiscali regionali e riforma federalista. Quanto residuerà delle politiche regionali e redistributive? [Fiscal residua and federalist reform in Italy. Will regional and redistributive polici," MPRA Paper 30895, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:30895
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    References listed on IDEAS

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    1. Domenico SCALERA & Alberto ZAZZARO, 2010. "L'economia del Mezzogiorno. Nuova politica regionale, crisi globale e federalismo fiscale," Working Papers 337, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    2. Andrés Rodríguez-Pose & Roberto Ezcurra, 2011. "Is fiscal decentralization harmful for economic growth? Evidence from the OECD countries," Journal of Economic Geography, Oxford University Press, vol. 11(4), pages 619-643, July.
    3. Brown, Charles C. & Oates, Wallace E., 1987. "Assistance to the poor in a federal system," Journal of Public Economics, Elsevier, vol. 32(3), pages 307-330, April.
    4. Wallace E. Oates & Wallace E. Oates, 2004. "An Essay on Fiscal Federalism," Chapters, in: Environmental Policy and Fiscal Federalism, chapter 22, pages 384-414, Edward Elgar Publishing.
    5. Maria Flavia Ambrosanio & Massimo Bordignon & Floriana Cerniglia, 2010. "Constitutional Reforms, Fiscal Decentralization and Regional Fiscal Flows in Italy," Chapters, in: Núria Bosch & Marta Espasa & Albert Solé Ollé (ed.), The Political Economy of Inter-Regional Fiscal Flows, chapter 4, Edward Elgar Publishing.
    6. Giampaolo Arachi & Caterina Ferrario & Alberto Zanardi, 2010. "Regional Redistribution and Risk Sharing in Italy: The Role of Different Tiers of Government," Regional Studies, Taylor & Francis Journals, vol. 44(1), pages 55-69.
    7. A. Giannola & C. Petraglia, 2007. "Demand and supply oriented policies and development. The "forgotten" dualism," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1, pages 13-42.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. A. Giannola & C. Petraglia, 2016. "Southern Italy and «Crisis» of Regional Policies," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1, pages 97-120.
    2. Adriano Giannola & Carmelo Petraglia & Domenico Scalera, 2017. "Residui fiscali, bilancio pubblico e politiche regionali," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2017(2), pages 33-57.
    3. Giannola, Adriano & Petraglia, Carmelo & Scalera, Domenico, 2016. "Net fiscal flows and interregional redistribution in Italy: A long-run perspective (1951–2010)," Structural Change and Economic Dynamics, Elsevier, vol. 39(C), pages 1-16.
    4. Adriano Giannola & Riccardo Padovani & Carmelo Petraglia, 2015. "Spending Review e divari regionali in Italia," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2015(1), pages 129-155.
    5. C. Petraglia & D. Scalera, 2012. "Le politiche per il Mezzogiorno negli anni della crisi (2007-2012)," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 4, pages 1023-1048.
    6. A. Citarella & A. Filocamo, 2017. "The Process of European Integration: Market Economy, Budgetary Constraints and Failed Objectives of the Cohesion Policy," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1-2, pages 117-134.

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    More about this item

    Keywords

    Mezzogiorno; redistribution; inter-governmental relations; federalism; regional development policies;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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