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The drivers of interregional policy choices: Evidence from Italy

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  • Padovano, Fabio

Abstract

Theoretical developments in political economy analyses of intergovernmental transfers identify several factors previously ignored in the empirical literature and emphasize the importance of institutional details. Combined, these two developments create a degrees of freedom problem and make cross country samples less meaningful. This paper circumvents these problems by examining an Italian regional panel that minimizes the set of institutional conditioning factors and is large enough to examine a comprehensive set of explanatory variables. The estimates confirm the relevance of most political determinants and of standard economic and socio-demographic determinants of interregional redistribution. Differences in type of expenditures and intergovernmental relations are also considered.

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  • Padovano, Fabio, 2012. "The drivers of interregional policy choices: Evidence from Italy," European Journal of Political Economy, Elsevier, vol. 28(3), pages 324-340.
    • Handle: RePEc:eee:poleco:v:28:y:2012:i:3:p:324-340
    DOI: 10.1016/j.ejpoleco.2012.01.003
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    Cited by:

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    3. Andrew Q. Philips, 2016. "Seeing the forest through the trees: a meta-analysis of political budget cycles," Public Choice, Springer, vol. 168(3), pages 313-341, September.
    4. Fabio Padovano, 2014. "Distribution of transfers and soft budget spending behaviors: evidence from Italian regions," Public Choice, Springer, vol. 161(1), pages 11-29, October.
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    10. Jaaidane, Touria & Larribeau, Sophie, 2023. "The effects of inter-municipal cooperation and central grant allocation on the size of the French local public sector," European Journal of Political Economy, Elsevier, vol. 76(C).
    11. Adriano Giannola & Carmelo Petraglia & Domenico Scalera, 2017. "Residui fiscali, bilancio pubblico e politiche regionali," ECONOMIA PUBBLICA, FrancoAngeli Editore, vol. 2017(2), pages 33-57.
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    14. Giannola, Adriano & Petraglia, Carmelo & Scalera, Domenico, 2016. "Net fiscal flows and interregional redistribution in Italy: A long-run perspective (1951–2010)," Structural Change and Economic Dynamics, Elsevier, vol. 39(C), pages 1-16.
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    More about this item

    Keywords

    Intergovernmental transfers; Political determinants;

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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