Interregional Redistribution and Mobility in Federations: A Positive Approach.

The paper studies the effects and the determinants of interregional redistribution in a model of residential and political choice. We find that paradoxical consequences of interjurisdictional transfers arise if people are mobile: while self-sufficient regions are necessarily identical with respect t...

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Publicado en:Review of Economic Studies Vol. 78; no. 4; pp. 1345 - 1379
Autores principales: Kessler, Anke S., Hansen, Nico A., Lessmann, Christian
Formato: Artículo
Publicado: Oxford University Press / UK October 2011
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      pub: Oxford University Press / UK
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        atl: Interregional Redistribution and Mobility in Federations: A Positive Approach.
      aug:
        au:
          Kessler, Anke S.
          Hansen, Nico A.
          Lessmann, Christian
      su:
        Economics & politics
        Resource allocation -- Mathematical models
        Intergovernmental fiscal relations
      sug:
        subj:
          Economics & politics
          Resource allocation -- Mathematical models
          Intergovernmental fiscal relations
      ab: The paper studies the effects and the determinants of interregional redistribution in a model of residential and political choice. We find that paradoxical consequences of interjurisdictional transfers arise if people are mobile: while self-sufficient regions are necessarily identical with respect to policies and average incomes in our model, interregional redistribution always leads to the divergence of regional policies and per capita incomes. Thus, interregional redistribution prevents interregional equality. At the same time, however, transfers may allow for more interpersonal equality among the inhabitants of each region. The voting population may therefore in a decision over the fiscal constitution deliberately implement such a transfer scheme to foster regional divergence. Empirical evidence from panel data from OECD countries and Canadian provinces is consistent with the theory. Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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