Does Fiscal Decentralisation Foster Regional Convergence?

Blöchliger, Hansjörg; Bartolini, David; Stossberg, Sibylle

doi:10.1787/5jlr3c1vcqmr-en

Cited by 19 publications

(15 citation statements)

References 8 publications

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“…By contrast, fiscal decentralisation may lower the likelihood of attracting skilled officials as the supply of skills may be limited at the local level and, in turn, reducing the efficiency in delivering redistributive polices (Prud'homme, 1995). A recent OECD study provides ambiguous results on the association between fiscal decentralisation and inequality, with the results depending on the particular inequality and decentralisation measure considered in the analysis (Blöchliger, Bartolini and Stossberg, 2016).…”

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confidence: 99%

Public Finance, Economic Growth and Inequality

Johansson¹

2016

OECD Economics Department Working Papers

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JT03405922Complete document available on OLIS in its original format This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. ECO/WKP(2016)70 Unclassified English -Or. English ECO/WKP(2016)70 2 OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s).Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.Comments on Working Papers are welcomed, and may be sent to OECD Economics Department, 2 rue André Pascal, 75775 Paris Cedex 16, France, or by e-mail to eco.contact@oecd.org. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.Latvia was not an OECD Member at the time of preparation of this publication. Accordingly, Latvia does not appear in the list of OECD Members and is not included in the zone aggregates. © OECD (2016)You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for commercial use and translation rights should be submitted to rights@oecd.org ECO/WKP(2016)70 3 ABSTRACT/RÉSUMÉPublic finance, economic growth and inequality: A survey of the evidence This paper reviews the key issues concerning the impact of public spending and taxation on long-run growth and inequality and takes stock of existing theoretical and empirical studies. Overall, the evidence highlights that the size of the government matters for long-term growth as a too large government may undermine growth through the cost of financing public spending. A reallocation of public spending towards infrastructure and education would raise income in the long run, whereas increasing social welfare spending can reduce inequality as such spending increases redistribution and risk sharing. Similarly, the available evidence also supports the hypothesis that some taxes are more distortionary than others, with income taxes found to be more harmful for growth than consumption and property taxes. However, a tax shift from income towards consumption taxes has equity implications, since income taxes are general...

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confidence: 99%

Public Finance, Economic Growth and Inequality

Johansson¹

2016

OECD Economics Department Working Papers

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“…Table 1 shows that for both approaches (Model 1 and Model 2) the price-income elasticity is estimated to be around 0.3, which means that a 10% difference in nominal income between states tends to become a real difference in income of the order of 7%, given that the remaining 3% is absorbed by higher prices. These results also show that the states with the greatest weight of services are those that tend to have higher price levels, followed by the states in which industry has a greater weight 8 . Given that both approaches provide similar results it was decided to use the results of Model 2 in Step 2.…”

Section: Methodology and Resultsmentioning

confidence: 67%

“…Robust standard errors that account for heteroscedasticity across clusters of states 7. The main objective of the regressions presented inTable 1is not to obtain estimators of the coefficients of the regression equation to which a causal interpretation can be given, but only to estimate a model that enables us to get a forecast after taking into account the information that is available for the countries that form part of the OECD sample 8. These results have also been confirmed when including as an independent variable the share of urban population in each state.…”

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confidence: 99%

Subnational purchasing power of parity in OECD countries

Costa¹,

Garcıá²,

Raymond³

et al. 2019

OECD Regional Development Working Papers

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The OECD is a multidisciplinary intergovernmental organisation of 36 member countries which engages in its work an increasing number of non-members from all regions of the world. The Organisation's core mission today is to help governments work together towards a stronger, cleaner, fairer global economy. Through its network of 250 specialised committees and working groups, the OECD provides a setting where governments compare policy experiences, seek answers to common problems, identify good practice, and coordinate domestic and international policies. More information available: www.oecd.org.

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“…Decomposing changes in GDP per capita into changes in labour productivity and the participation rate suggests that productivity is the main driver of regional inequalities in (Blöchliger, Bartolini and Stossberg, 2016). Indeed, across the OECD, the gap within countries between the top 10% regions with the highest labour productivity and the bottom 75% has grown on average by almost 60% over the last two decades (OECD, 2016b and 2016c).…”

Section: Low Productivity Growth Also Contributes To Regional Disparimentioning

confidence: 99%

Reducing regional disparities for inclusive growth in Spain

McGowan¹,

Millán²

2019

OECD Economics Department Working Papers

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This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 2 │ ECO/WKP(2019)18 REDUCING REGIONAL DISPARITIES FOR INCLUSIVE GROWTH IN SPAIN Unclassified OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works.

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Does Fiscal Decentralisation Foster Regional Convergence?

Cited by 19 publications

References 8 publications

Public Finance, Economic Growth and Inequality

Public Finance, Economic Growth and Inequality

Subnational purchasing power of parity in OECD countries

Reducing regional disparities for inclusive growth in Spain

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