IDEAS home Printed from https://ideas.repec.org/a/mul/jqyfkm/doi10.1432-29875y2009i1-2p101-132.html
   My bibliography  Save this article

The evolution of regional financing system: autonomy and development trade-off

Author

Listed:
  • G. Stornaiuolo
  • M.R. Alfano

Abstract

Devolving function processes, implemented in Italy as well as in other countries, are increasing fiscal autonomy and cutting all the forms of still existing grants. Several authors (Prud'homme, 1995) highlight that a wider tax autonomy of sub national governments might increase the economic gap at local level and give rise to a less economic growth of the lower fiscal capability areas. Following this thesis, the paper points out the negative effects both in terms of economic growth and of widening local economic differences as consequence of the evolution of the Italian regional financing system over the years 1990-2006. As a result the autonomous revenue increase significantly while the grants (block and conditional) were cut. Being the trade off between tax autonomy and grants reduction both static and dynamic it seems that the application of the article 119 of new V Title, expanding the tax autonomy while reducing the national grants - specially the conditional ones'- might increase the already existing economic gap.

Suggested Citation

  • G. Stornaiuolo & M.R. Alfano, 2009. "The evolution of regional financing system: autonomy and development trade-off," Rivista economica del Mezzogiorno, Società editrice il Mulino, issue 1-2, pages 101-132.
    • Handle: RePEc:mul:jqyfkm:doi:10.1432/29875:y:2009:i:1-2:p:101-132
    as

    Download full text from publisher

    File URL: https://www.rivisteweb.it/download/article/10.1432/29875
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.rivisteweb.it/doi/10.1432/29875
    Download Restriction: no
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mul:jqyfkm:doi:10.1432/29875:y:2009:i:1-2:p:101-132. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://www.rivisteweb.it/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.