Redistributive effects of regional transfersa conceptual framework
- Julio López - Laborda 1
- Antoni Zabalza 2
- 1 Universidad de Zaragoza, Departamento de Estructura e Historia Económica y Economía Pública
- 2 Universidad de Valencia, Departamento de Análisis Económico
ISSN: 1696-7496
Year of publication: 2018
Issue: 2
Pages: 1-46
Type: Working paper
More publications in: Documentos de trabajo ( 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.