Measuring Horizontal Fiscal Imbalances: the case of Italian Municipalities

Giuseppe Di Liddo, Ernesto Longobardi () and Francesco Porcelli

No 49, SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro"

Abstract: In the literature on fiscal federalism, vertical fiscal imbalances have been widely studied, while the theme of horizontal fiscal imbalances and inequality between local governments’ fiscal capacities is still less explored. This paper contributes to fill the gap. A new method to compute fiscal capacities based on regression analysis is proposed, which can overcome some of the drawbacks of traditional methods such the representative tax system. This new approach is then employed to evaluate the fiscal capacities of Italian municipalities over the period 2002-2010. Finally two global measures of the horizontal fiscal imbalance are then used to evaluate the equity implication of a major policy change occurred in 2008 in Italian municipal finance.

Keywords: Inter-governmental grants; horizontal and fiscal imbalances; equalisation; fiscal capacityLength: 277 (search for similar items in EconPapers)
JEL-codes: H73 H77 (search for similar items in EconPapers)
Date: 2014-07, Revised 2014-07
New Economics Papers: this item is included in nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.seriesworkingpapers.it/RePEc/bai/series/Economia-Series49.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bai:series:economia-series49

Access Statistics for this paper

More papers in SERIES from Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro" Largo Abbazia S. Scolastica, 53 - 70124 - Bari - ITALY. Contact information at EDIRC.
Bibliographic data for series maintained by Annalisa Vinella ().