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Financing Regions and Local Governments: Problems and Perspectives

Paolo Liberati

QA - Rivista dell'Associazione Rossi-Doria, 2011, issue 1

Abstract: This paper deals with how the reform regulating fiscal federalism in Italy (L. 42/2009) addresses three problems. First, how to finance additional sub-central competencies with local taxes, especially when they involve the provision of minimum or essential levels of service (e.g. health). Second, how to solve the trade-off between the need for greater efficiency and the need to equalise the lower endowment of the poorer regions. Third, whether local governments should have a direct relationship with the central government or whether the regions may successfully fund and equalise the fiscal capacity of local governments within their territories.

Keywords: Fiscal federalism; Equalisation; Minimum standards (search for similar items in EconPapers)
JEL-codes: H71 H72 H73 (search for similar items in EconPapers)
Date: 2011
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