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Regional income redistribution and risk-sharing: Lessons from Argentina

Author

Listed:
  • Walter Cont

    (Fundación de Investigaciones Económicas Latinoamericanas and Universidad Nacional de La Plata)

  • Alberto Porto

    (Universidad Nacional de La Plata)

  • Pedro Juarros

    (Universidad Nacional de La Plata and Georgetown University)

Abstract

This paper estimates redistribution and risk-sharing across provinces in Argentina during the 1995-2010 period as a result of the national budget. We find that the aggregate national budget (expenditure, transfers and their corresponding revenues) reduces differences in the per capita provincial Gross Geographic Product by 5% in the long term, and stabilizes such differences by 10%. The redistributive tool is national expenditure, while automatic intergovernmental transfers are almost neutral and tax revenues amplify regional disparities. The quantitative effects are somewhat modest in comparison with those achieved in developed countries. Regressive taxation is the key difference with developed countries.

Suggested Citation

  • Walter Cont & Alberto Porto & Pedro Juarros, 2017. "Regional income redistribution and risk-sharing: Lessons from Argentina," Journal of Applied Economics, Universidad del CEMA, vol. 20, pages 241-269, November.
    • Handle: RePEc:cem:jaecon:v:20:y:2017:n:2:p:241-269
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    File URL: https://ucema.edu.ar/publicaciones/download/volume20/cont.pdf
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    Citations

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    Cited by:

    1. Eduardo Silva & Alex Ferreira, 2023. "Risk-sharing within Brazil and South America," Empirical Economics, Springer, vol. 65(2), pages 661-695, August.
    2. Mengting Ruan & Xiaolu Zhao, 2022. "Fiscal Pressure, Policy Choices and Regional Economic Disparity: Evidence from a Natural Experiment in China," Sustainability, MDPI, vol. 14(19), pages 1-13, September.
    3. Jorge M. Streb, 2018. "Tributación sin representación: la democracia argentina desde 1983," CEMA Working Papers: Serie Documentos de Trabajo. 633, Universidad del CEMA.
    4. Jorge M. Streb, 2019. "Tributación sin representación: Argentina desde 1983," Ensayos de Política Económica, Departamento de Investigación Francisco Valsecchi, Facultad de Ciencias Económicas, Pontificia Universidad Católica Argentina., vol. 3(1), pages 1-35, Octubre.

    More about this item

    Keywords

    fiscal policy; redistribution; risk sharing;
    All these keywords.

    JEL classification:

    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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