The distributional outcomes of one-size-fits-all policy response to societal disruptions on local government transfer dependence

Daniel Pop ()
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Daniel Pop: Faculty of Political Science, Public Administration and Communications, BabeÅŸ-Bolyai University, Romania

Romanian Journal of Regional Science, 2024, vol. 18, issue 1, 108-124

Abstract: This research explores how the one-size-fits-all government-led counter-cyclical policy response to societal disruptions, in this case COVID-19, produces distributed fiscal autonomy outcomes across local governments. The Wilcoxon matched-pairs signed-ranks test reveals statistically significant results in a before-after research design. The overall median local authority transfer dependence during the post-intervention year was lower than in the pre-intervention year by 14.2% for Romanian local governments. However, the lower horizontal fiscal gap indicates that counter-cyclical measures were less effective in addressing the adverse effects of disruption on local governments’ revenues in larger local economies compared to those in smaller ones.

Keywords: Public Economics; Interjurisdictional Differentials; Intergovernmental Relations; Disaster Aid (search for similar items in EconPapers)
JEL-codes: H7 H73 H77 H84 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:rrs:journl:v:18:y:2024:i:1:p:108-124

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