On the size and determinants of inter-regional redistribution in European countries over the period 1995–2009

Santiago Lago-Peñas, Albino Prada and Alberto Vaquero García

Empirica, 2015, vol. 42, issue 4, 845-864

Abstract: The aim of this paper is to analyse cross-country differences in the degree of inter-regional redistribution achieved by means of taxes and expenditures in 21 European countries over the period 1995–2009. We rely on a standard approach based on the observation and comparison of both primary and disposable household income at regional scale. Once the redistributive effect in each country is quantified, we try to explain the drivers of cross-country time-series differences. According to our estimates, cross-national standard deviation is significant and much higher than time variation. Secondly, inter-regional redistribution is strongly and positively related to personal redistribution by means of taxes and social benefits in cash; and is negatively related to both the extent of regional disparities in primary income and to the degree of political and fiscal decentralization. Copyright Springer Science+Business Media New York 2015

Keywords: Inter-regional redistribution; Regional fiscal imbalance; European Union; H11; H23; H77 (search for similar items in EconPapers)
Date: 2015
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Related works:
Working Paper: On the Size and Determinants of Inter-regional Redistribution in European Countries over the Period 1995-2009 (2013)
Working Paper: On the Size and Determinants of Inter-regional Redistribution in European Countries over the Period 1995-2009 (2013)
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DOI: 10.1007/s10663-015-9284-4

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