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

Abstract

Arachi G., Ferrario C. and Zanardi A. Regional redistribution and risk sharing in Italy: the role of different tiers of government, Regional Studies. This paper provides estimates of the redistribution and risk sharing across regional jurisdictions accomplished by the public sector in Italy. In this analysis the multi-level structure of the Italian government and the financial relations which link the different tiers of government are explicitly considered. Using panel data for the period 1996-2002, it is found that public policies in Italy significantly reduce differences in per-capita gross domestic product across regions. However, the public budget, far from providing insurance against idiosyncratic shocks, greatly emphasizes income fluctuations across regions. [image omitted] Arachi G., Ferrario C. et Zanardi A. La redistribution regionale et le partage des risques en Italie: le role des divers niveaux d'administration, Regional Studies. Cet article cherche a fournir des estimations de la redistribution et du partage des risques a travers des circonscriptions d'action regionale et realises par le secteur public italien. Cette analyse approfondit la structure a niveaux multiples de l'administration italienne et examine ouvertement les rapports financiers qui relient les divers niveaux d'administration. A partir des donnees provenant des enquetes permanentes pour la periode de 1996 a 2002, il s'avere que les politiques publiques en Italie reduisent sensiblement les ecarts du PIB regional par tete. Cependant, les depenses publiques, loin de fournir une protection contre des chocs particuliers, soulignent les fluctuations du revenu a travers les regions. Politique fiscale Redistribution Partage des risques Rapports entre les niveaux d'administration Regions Arachi G., Ferrario C. und Zanardi A. Regionale Umverteilung und Risikoteilung in Italien: die Rolle der verschiedenen Regierungsebenen, Regional Studies. In diesem Beitrag schatzen wir das Ausmass der Umverteilung und Risikoteilung zwischen verschiedenen regionalen Rechtsprechungsgebieten des offentlichen Sektors in Italien. Ausdrucklich in der Analyse berucksichtigt werden die mehrschichtige Struktur der italienischen Regierung sowie die finanziellen Beziehungen, die die verschiedenen Regierungsebenen miteinander verbinden. Anhand von Paneldaten fur den Zeitraum von 1996 bis 2002 stellen wir fest, dass die offentlichen Politiken in Italien die Unterschiede des Pro-Kopf-BIP zwischen den Regionen signifikant verringern. Im offentlichen Haushalt werden die Einkommensfluktuationen innerhalb der Regionen jedoch stark betont, statt eine Absicherung gegen idiosynkratische Storungen zu gewahrleisten. Steuerpolitik Umverteilung Risikoteilung Beziehungen zwischen Regierungen Regionen Arachi G., Ferrario C. y Zanardi A. Redistribucion regional y riesgo compartido en Italia: el rol de los diferentes niveles de gobierno, Regional Studies. En este articulo ofrecemos las estimaciones de la redistribucion y el riesgo compartido en varias jurisdicciones regionales del sector...

Net fiscal flows and interregional redistribution in Italy: A long-run perspective (1951–2010)

“…Our main conclusion is that Mezzogiorno has benefited from large and increasing levels of transfers of public resources, but nevertheless the intensity of redistribution can hardly be judged excessive. Source: Own elaboration on Tarquinio (1969), Forte et al (1978), ISTAT (1996), Fondazione Agnelli (1998), Arachi et al (2010), Staderini and Vadalà (2009) and Arachi et al (2013). Source: Own elaboration on Tarquinio (1969), Forte et al (1978), ISTAT (1996), Fondazione Agnelli (1998), Arachi et al (2010), Staderini and Vadalà (2009) and Arachi et al (2013).…”

“…Source: Own elaboration on Tarquinio (1969), Forte et al (1978), ISTAT (1996), Fondazione Agnelli (1998), Arachi et al (2010), Staderini and Vadalà (2009) and Arachi et al (2013). Source: Own elaboration on Tarquinio (1969), Forte et al (1978), ISTAT (1996), Fondazione Agnelli (1998), Arachi et al (2010), Staderini and Vadalà (2009) and Arachi et al (2013). Sources: For the years 1951-1963 total expenditure for interest payments has been attributed to the two macro-regions according to the distribution of the stock of public debt owned by residents (Manfrellotti, 2008).…”

“…A partly different approach distinguishes between vertical and horizontal fiscal imbalances (e.g. Bird and Tarasov, 2004); Arachi et al (2010) evaluate NFFs for Italian regions and then break them down in their vertical and horizontal components.…”

“…Table A6 Table A6 no distinction is made between social security and other items for both payments and revenues, since the source papers do not supply these details. Finally, following Arachi et al (2010) and Arachi et al (2013), only data on net fiscal flows are shown for 1996-2002 and 2007-2010. Data of Tables A1 to A6 are the basis to build up the series of yearly averages of regional NFFs in absolute Euro 2010 values reported in Table 1. These values are adjusted for aggregate budget surpluses or deficits (i.e.…”

“…The size of redistribution through public fiscal flows is around 40% (average over several countries) for MacDougall (1977); 30% for Spain in Castells et al (1981); 39% for Canada and 22% for the United States according to Bayoumi and Masson (1995); 38% in France, 26% in UK, 18% in Canada and 16% in the USA in Mélitz and Zummer (1998); 40% for Germany in Duboz and Nicot (1998); 45% on average in several European countries, for Castells (1998). More recently, Barberán et al (2000), estimating equation (1) Finally, Decressin (2002) and Arachi et al (2010) use similar estimates to assess the extent of redistribution in Italy respectively in the periods 1983-1992 and 1996-2002; the former find that the redistributive power of fiscal flows is around 24% while for the latter the estimate is about 28% 16 .…”