Does redistribution matter? The decomposition of the fiscal residuum in Italian regions

Elina De Simone and Paolo Liberati

Regional Studies, 2020, vol. 54, issue 3, 296-307

Abstract: Fiscal residuum has often been used as an index of the territorial balance between taxes paid and benefits received from the policies of different tiers of government. Its standard calculation, however, conflates what of the residuum is due to the need of financing public spending and what is due to the redistributive aims of government levels. This paper introduces a decomposition that isolates these two elements. The empirical evidence for Italy in the period 2003–15 shows that differences in fiscal residua between the northern and the southern regions are smaller than usually calculated. A clear difference, instead, emerges in special statute regions.

Date: 2020
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DOI: 10.1080/00343404.2019.1603367

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