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On the Size and Determinants of Inter-regional Redistribution in European Countries over the Period 1995-2009

Santiago Lago-Peñas (), Albino Prada Blanco () and Alberto Vaquero García ()

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

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.

Keywords: Inter-regional redistribution; regional fiscal imbalance; European Union. (search for similar items in EconPapers)
Pages: 25 pages
Date: 2013-03-12
New Economics Papers: this item is included in nep-eur and nep-pbe
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Related works:
Journal Article: On the size and determinants of inter-regional redistribution in European countries over the period 1995–2009 (2015) Downloads
Working Paper: On the Size and Determinants of Inter-regional Redistribution in European Countries over the Period 1995-2009 (2013) Downloads
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