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The Measurement of Interregional Redistribution

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  • G. C. Ruggeri
  • Weiqiu Yu

Abstract

This study develops local and global indices to measure interregional redistribution. The local indices compare federal revenues and expenditures assigned to various regions with the pattern of income disparities among regions. They are developed by relating these comparisons under a given regional distribution of federal fiscal activity to three special cases under known degrees of redistribution: no redistribution, the degree of redistribution that would be delivered solely through equal per capita federal spending in each region, and the maximum degree of redistribution that would equalize per capita income in all regions. Global indices are then developed as weighted averages of the local indices. Results show that the federal fiscal system in 1996 delivered a degree of interregional redistribution 1.8 times what would have been generated under equal per capita federal expenditures in each region and nearly half of the maximum redistribution that could have been delivered by the federal fisc.

Suggested Citation

  • G. C. Ruggeri & Weiqiu Yu, 2003. "The Measurement of Interregional Redistribution," Public Finance Review, , vol. 31(4), pages 392-412, July.
    • Handle: RePEc:sae:pubfin:v:31:y:2003:i:4:p:392-412
    DOI: 10.1177/1091142103031004003
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    References listed on IDEAS

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    1. Cassady, K & Ruggeri, G C & Van Wart, D, 1996. "On the Classification and Interpretation of Global Progressivity Measures," Public Finance = Finances publiques, , vol. 51(1), pages 1-22.
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    Cited by:

    1. Giuseppe C. Ruggeri, 2010. "Inter-regional Fiscal Flows: Measurement Tools," Chapters, in: Núria Bosch & Marta Espasa & Albert Solé Ollé (ed.), The Political Economy of Inter-Regional Fiscal Flows, chapter 2, Edward Elgar Publishing.
    2. Giuseppe C. Ruggeri, 2010. "Inter-regional Fiscal Flows: Canada," Chapters, in: Núria Bosch & Marta Espasa & Albert Solé Ollé (ed.), The Political Economy of Inter-Regional Fiscal Flows, chapter 6, Edward Elgar Publishing.
    3. Giuseppe C.Ruggeri, 2009. "Regional Fiscal Flows: Measurement Tools," Working Papers 2009/4, Institut d'Economia de Barcelona (IEB).
    4. Irene Ferrari & Alberto Zanardi, 2014. "Decentralisation and interregional redistribution in the Italian education system," Education Economics, Taylor & Francis Journals, vol. 22(5), pages 529-548, October.
    5. Paul Van Rompuy, 2010. "Measurement and Practice of Fiscal Flows: The Case of Belgium," Chapters, in: Núria Bosch & Marta Espasa & Albert Solé Ollé (ed.), The Political Economy of Inter-Regional Fiscal Flows, chapter 5, Edward Elgar Publishing.

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    1. Giuseppe C. Ruggeri, 2010. "Inter-regional Fiscal Flows: Measurement Tools," Chapters, in: Núria Bosch & Marta Espasa & Albert Solé Ollé (ed.), The Political Economy of Inter-Regional Fiscal Flows, chapter 2, Edward Elgar Publishing.

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