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The distributional outcomes of one-size-fits-all policy response to societal disruptions on local government transfer dependence

Author

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  • Daniel Pop

    (Faculty of Political Science, Public Administration and Communications, BabeÅŸ-Bolyai University, Romania)

Abstract

This research explores how the one-size-fits-all government-led counter-cyclical policy response to societal disruptions, in this case COVID-19, produces distributed fiscal autonomy outcomes across local governments. The Wilcoxon matched-pairs signed-ranks test reveals statistically significant results in a before-after research design. The overall median local authority transfer dependence during the post-intervention year was lower than in the pre-intervention year by 14.2% for Romanian local governments. However, the lower horizontal fiscal gap indicates that counter-cyclical measures were less effective in addressing the adverse effects of disruption on local governments’ revenues in larger local economies compared to those in smaller ones.

Suggested Citation

  • Daniel Pop, 2024. "The distributional outcomes of one-size-fits-all policy response to societal disruptions on local government transfer dependence," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 18(1), pages 108-124, June.
    • Handle: RePEc:rrs:journl:v:18:y:2024:i:1:p:108-124
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    References listed on IDEAS

    as
    1. Joanna Siwińska-Gorzelak & Grażyna Bukowska & Piotr Wójcik, 2020. "The impact of revenue autonomy on the composition of local public spending: evidence from Poland," Local Government Studies, Taylor & Francis Journals, vol. 46(4), pages 641-665, July.
    2. Maryia Markhvida & Brian Walsh & Stephane Hallegatte & Jack Baker, 2020. "Quantification of disaster impacts through household well-being losses," Nature Sustainability, Nature, vol. 3(7), pages 538-547, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Public Economics; Interjurisdictional Differentials; Intergovernmental Relations; Disaster Aid;
    All these keywords.

    JEL classification:

    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • 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
    • H84 - Public Economics - - Miscellaneous Issues - - - Disaster Aid

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