Struggles over what a region receives, or should receive, from the budget of the central government are common to many countries. Discussions often focus on the measures of 'net fiscal flows' or 'fiscal balances' provided by the government or other actors. This unique book shows just how these flows are computed then interpreted and clarifies the often misunderstood economic and political motives that explain why some regions receive more monies than others. "The Political Economy of Inter-Regional Fiscal Flows" provides an overview of the main methods currently being used to measure 'fiscal flows', highlighting the advantages of the different approaches and interpreting their results. The book reviews the political economy literature that analyzes the determinants of inter-regional 'fiscal flows'. Particular attention is devoted to the relationship between 'fiscal flows' and country stability, with methodological contributions and country studies both focusing on this issue. The contributing economists and political scientists provide a state-of-the-art study that will prove to be of great use to academics and practitioners in public sector economics and finance.
Author(s): Nuria Bosch, Marta Espasa, Albert Sole Olle
Year: 2010
Language: English
Pages: 415
Copyright......Page 5
Contents......Page 6
Contributors......Page 9
Preface and acknowledgements......Page 12
1. Inter- regional fiscal flows: introduction to the issues......Page 14
PART I Counting monies: measurement and practice of inter-regional fiscal fl ows......Page 24
2. Inter-regional fiscal flows: measurement tools......Page 26
3. Inter-regional fiscal flows: interpretation issues......Page 52
Comment I......Page 72
Comment II......Page 77
4. Constitutional reforms, fiscal decentralization and regional fiscal flows in Italy......Page 88
5. Measurement and practice of fiscal flows: the case of Belgium......Page 121
6. Inter-regional fiscal flows: Canada......Page 138
Comment III......Page 159
7. Inter-regional fiscal flows: methodologies, results and their determinant factors for Spain......Page 163
Comment IV......Page 186
Comment V......Page 195
PART II Beyond the data: why some regions get more money......Page 202
8. Federalism and inter-regional redistribution......Page 204
Comment VI......Page 233
9. Decentralization by politicians: creation of grants-financed local jurisdictions......Page 240
10. The political rationale of regional financing in Spain......Page 262
Comment VII......Page 283
11. The determinants of regional transport investment across Europe......Page 289
12. The determinants of the regional allocation of infrastructure investment in Spain......Page 310
Comment VIII......Page 333
PART III In or out? Regional redistribution and the stability of federations......Page 340
13. Federalism, regional redistribution and country stability......Page 342
Comment IX......Page 364
14. The costs and benefits of staying together: the Catalan case in Spain......Page 370
15. The costs and benefits of constitutional options for Québec and Canada......Page 384
16. Staying together? Scotland and the rest of the United Kingdom......Page 402
Index......Page 418
