The Common Municipal Fund: What is the role in the convergence of local incomes?

Yasna Cortés Garriga () and Dusan Paredes
Additional contact information
Yasna Cortés Garriga: IDEAR - Master in Regional Sciences - Department of Economics, Universidad Católica del Norte - Chile

No 45, Documentos de Trabajo en Economia y Ciencia Regional from Universidad Catolica del Norte, Chile, Department of Economics

Abstract: This paper analyzes the role of FCM in the convergence process of the income governments with a panel data of 345 municipalities for the period between 2001 and 2011. Using quasi-experiments and dynamic equations demonstrated that the FCM doesn’t have a significant effect in the increase of the convergence speed, evidencing the ineffective of this territorial policy in the reduction of disparities in long term. The weak develop of the decentralization and the low incentives of the municipalities to obtain own resources, promotes the emergence of strategic behaviors that distort the redistributive effect of the FCM in municipalities, decreasing its impact in the reduction of territorial disparities in Chile.

Keywords: Descentralización; convergencia; disparidades regionales; panel de datos. (search for similar items in EconPapers)
JEL-codes: H11 H71 R11 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2013-04, Revised 2013-04
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://sites.google.com/a/ucn.cl/wpeconomia/archivos/WP2013-14.pdf First version, 2013 (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:cat:dtecon:dt201314

Access Statistics for this paper

More papers in Documentos de Trabajo en Economia y Ciencia Regional from Universidad Catolica del Norte, Chile, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Benjamin Jara ( this e-mail address is bad, please contact ).