The Effects of Interpersonal Fiscal Redistribution on Provincial Growth and Convergence in Spain

Jose Villaverde (), Adolfo Maza and Maria Hierro

Hacienda Pública Española / Review of Public Economics, 2014, vol. 209, issue 2, 151-170

Abstract: This paper analyzes the effects of interpersonal fiscal redistribution on provincial growth and convergence in Spain over 2000-2010. After reviewing the literature and stressing the ambiguity of its conclusions, the paper offers an overview of the main characteristics of the interpersonal fiscal flows distribution. Next, it specifies a convergence model in which interpersonal fiscal flows are used as a key independent variable. Before further proceeding, the paper applies a filtering technique to remove spatial autocorrelation from raw data and, then, it estimates the model by GMM. The main conclusion is that interpersonal fiscal flows are an important policy instrument to promote both growth and, above all, convergence across Spanish provinces. Therefore, it seems that the typical trade-off between efficiency and equity does not hold in this case.

Keywords: Interpersonal fiscal flows; convergence; growth; Spanish provinces (search for similar items in EconPapers)
JEL-codes: C23 E62 H3 O18 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ief.es/comun/Descarga.cshtml?ruta=~/do ... tas/hpe/209_Art4.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hpe:journl:y:2014:v:209:i:2:p:151-170

Access Statistics for this article

More articles in Hacienda Pública Española / Review of Public Economics from IEF Contact information at EDIRC.
Bibliographic data for series maintained by Miguel Gómez de Antonio ().