Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Fiscal equalization and composition of subnational government spending: implications for regional convergence
This study examines the impact of fiscal equalization payments on the composition of government spending under endogenous growth theory. Analytical conjectures stemming from the model are tested empirically. As an instrumental variable for within-province variations in provinces’ equalization entitlements, we use plausibly exogenous variations in the grant eligibility rule for the Canadian fiscal equalization system. We find that fiscal equalization payments have a significant negative effect on the share of productive expenditures and a significant positive effect on the share of unproductive government expenditures. Furthermore, the results show that fiscal equalization lowers the speed of cross-regional convergence in real gross domestic product per worker.
Fiscal equalization and composition of subnational government spending: implications for regional convergence
This study examines the impact of fiscal equalization payments on the composition of government spending under endogenous growth theory. Analytical conjectures stemming from the model are tested empirically. As an instrumental variable for within-province variations in provinces’ equalization entitlements, we use plausibly exogenous variations in the grant eligibility rule for the Canadian fiscal equalization system. We find that fiscal equalization payments have a significant negative effect on the share of productive expenditures and a significant positive effect on the share of unproductive government expenditures. Furthermore, the results show that fiscal equalization lowers the speed of cross-regional convergence in real gross domestic product per worker.
Fiscal equalization and composition of subnational government spending: implications for regional convergence
Hailemariam, Abebe (Autor:in) / Dzhumashev, Ratbek (Autor:in)
Regional Studies ; 53 ; 587-601
03.04.2019
15 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
fiscal equalization , government spending , endogenous growth , regional convergence , E6 , H5 , H7 , O4
Does subnational tax autonomy promote regional convergence? Evidence from OECD countries, 1995–2011
| Taylor & Francis Verlag | 2021
Subnational fiscal balance, interregional redistribution and risk-sharing in Italy
| Taylor & Francis Verlag | 2020
Equalising spending needs of subnational governments in a developing country: the case of Tanzania
| Online Contents | 2011