Regional Redistribution and Risk Sharing in Italy: The Role of Different Tiers of Government

Regional Income Redistribution and Risk-Sharing: Lessons from Argentina

“…Capó and Xisco (2002) found a stabilization effect of 10% and a redistribution effect of 25% in Spain. Arachi et al (2010) also analyzed the case of Italy, including regional budgets, and found that the consolidated budget reduced regional disparities by 25% to 35% (as found by Decressin 2002) but amplified local cycles by 30% to 40%. 7 Most papers try to identify the contribution of different types of expenditures or taxes to total effects.…”

“…2,3 Macroeconomic and political instability have played a role in the configuration of a complex tax system, with reforms and counter-reforms that have prevented central and sub-national governments from building institutions to regulate revenue sharing with redistributive and stabilizing criteria (Tommasi et al 2001). Third, the degree of disparity in terms of population, incomes, development, production and consumption between regions is considerable greater in developing countries (here, Argentina) than in the developed countries analyzed in the past, with the exception of Italy, studied and highlighted by Arachi et al (2010). 4 Therefore, these territorial and income inequalities have consequences on tax collection and expenditure allocation that can be playing a role in the mechanism by which the central government affects the gross regional product of provinces in the long and short term.…”

Fiscal decentralization in the Italian NHS: What happens to interregional redistribution?

“…5 As a term of comparison we also estimate redistribution by the overall public budget. Applying a well developed econometric approach [23][24][25][26][27][28][29][30][31], we regress a regional "activity" variable (regional per-capita income) including the fiscal balance on that same variable net of the fiscal balance. The fiscal balance is given by total public expenditure benefiting a regions' residents less total revenues collected from the regions residents.…”

“…Following the approach proposed by Bayoumi and Masson [26], as later developed by Mélitz and Zumer [34,29], and applied to Italy by Decressin [35] and by Arachi et al [31], a summary measure of interregional redistribution can be obtained by running an OLS estimation on the following model:…”

Revisiting the redistribution effects of intergovernmental fiscal transfers: evidence from Taiwan

“…First, most of them have focused on employing linear models to measure the redistribution effects in the developed countries (Arachi, Ferrario, and Zanardi 2010;Goñi, López, and Servén 2011;Gordon and Cullen 2011;Jüßen 2006;Mélitz and Zumer 2002). However, several factors may explain the nonlinear dynamics of economic variables (Obstfeld and Taylor 2005;Tronzano, Psaradakis, and Sola 2003).…”