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Fiscal Institutions and the Size and Inter-Regional Distribution of Public Redistribution. (Instituciones Fiscales y el Tamaño y Distribución Inter-Regional de la Redistribución Pública)

Author

Listed:
  • Raúl Alberto Ponce Rodríguez

    (Universidad Autónoma de Ciudad Juárez, Instituto de Ciencias Sociales y Administración. Ciudad Juárez, Chihuahua. México.)

  • Juan Medina Guirado

    (Universidad Autónoma de Ciudad Juárez, Instituto de Ciencias Sociales y Administración. Ciudad Juárez, Chihuahua. México.)

Abstract

Fiscal institutions, which are responsible for the delegation of tax and spending powers among different tiers of governments, are important determinants of the size and efficiency of public redistribution. In this paper we develop a comparative analysis of the impact of fiscal decentralization vis-à-vis tax revenue sharing on the government’s effort to redistribute income. The main findings are: first, the size of the national budget for public redistribution is the same under fiscal decentralization and tax revenue sharing. Second, different fiscal institutions lead to different regional distributions of public transfers. Third, when choosing between decentralization and tax revenue sharing, there is a tradeoff between the efficiency and the regional effort of the government to redistribute income.

Suggested Citation

  • Raúl Alberto Ponce Rodríguez & Juan Medina Guirado, 2018. "Fiscal Institutions and the Size and Inter-Regional Distribution of Public Redistribution. (Instituciones Fiscales y el Tamaño y Distribución Inter-Regional de la Redistribución Pública)," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(1), pages 1-42, May.
    • Handle: RePEc:ere:journl:v:xxxvii:y:2018:i:1:p:1-42
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Redistribution; Inter-regional externalities; Federalism; Structure and scope of government;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H1 - Public Economics - - Structure and Scope of Government

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