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Redistributive effects of regional transfers: a conceptual framework

Julio López-Laborda and Antoni Zabalza ()

No 2018-02, Working Papers from FEDEA

Abstract: This paper presents a conceptual framework to analyse the redistributive impact of transfers in the context of a decentralized economy. The framework is illustrated by means of a numerical example that describes an economy with three regions and two levels of government―the central level and the regional level. With this set up, the paper analyses a variety of transfer systems and considers its effects on redistribution using as benchmark the distribution going on in the centralized version of this economy, in which tax capacity is unevenly distributed across the three regions and central government public expenditure is distributed across regions according to their population.

Date: 2018-01
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