The Political Economy of Inter-Regional Fiscal Flows
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The Political Economy of Inter-Regional Fiscal Flows

Measurement, Determinants and Effects on Country Stability

9781848443730 Edward Elgar Publishing
Edited by Núria Bosch, Marta Espasa and Albert Solé Ollé, Universitat de Barcelona (UB) and Institut d’Economia de Barcelona (IEB), Spain
Publication Date: 2010 ISBN: 978 1 84844 373 0 Extent: 432 pp
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.

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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 analyses 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.
Contributors
Contributors: M.F. Ambrosanio, R. Barberán, G. Bel, D. Bell, C. Boix, M. Bordignon, N. Bosch, F. Cerniglia, M. Espasa, A. Kemmerling, S. Khemani, S. Lago, S. León, G. López-Casasnovas, E. Paluzie, J. Rodden, G.C. Ruggeri, A. Solé Ollé, E. Spolaore, A. Stephan, F. Vaillancourt, P. Van Rompuy, A. Zabalza
Contents
Contents:

Preface

1. Inter-regional Fiscal Flows: Introduction to the Issues
Núria Bosch, Marta Espasa and Albert Solé Ollé

PART I: COUNTING MONIES: MEASUREMENT AND PRACTICE OF INTER-REGIONAL FISCAL FLOWS
2. Inter-regional Fiscal Flows: Measurement Tools
Giuseppe C. Ruggeri

3. Inter-regional Fiscal Flows: Interpretation Issues
François Vaillancourt

Comment by Núria Bosch

Comment by Antoni Zabalza

4. Constitutional Reforms, Fiscal Decentralization and Regional Fiscal Flows in Italy
Maria Flavia Ambrosanio, Massimo Bordignon and Floriana Cerniglia

5. Measurement and Practice of Fiscal Flows: The Case of Belgium
Paul Van Rompuy

6. Inter-regional Fiscal Flows: Canada
Giuseppe C. Ruggeri

Comment by François Vaillancourt

7. Inter-regional Fiscal Flows: Methodologies, Results and their Determinant Factors for Spain
Marta Espasa and Núria Bosch

Comment by Guillem López-Casasnovas

Comment by Ramon Barberán

PART II: BEYOND THE DATA: WHY SOME REGIONS GET MORE MONEY
8. Federalism and Inter-regional Redistribution
Jonathan Rodden

Comment by Carles Boix

9. Decentralization by Politicians: Creation of Grants-financed Local Jurisdictions
Stuti Khemani

10. The Political Rationale of Regional Financing in Spain
Sandra León

Comment by Santiago Lago

11. The Determinants of Regional Transport Investment Across Europe
Achim Kemmerling and Andreas Stephan

12. The Determinants of the Regional Allocation of Infrastructure Investment in Spain
Albert Solé Ollé

Comment by Germà Bel

PART III: IN OR OUT? REGIONAL REDISTRIBUTION AND THE STABILITY OF FEDERATIONS
13. Federalism, Regional Redistribution and Country Stability
Enrico Spolaore

Comment by Massimo Bordignon

14. The Costs and Benefits of Staying Together: The Catalan Case in Spain
Elisenda Paluzie

15. The Costs and Benefits of Constitutional Options for Québec and Canada
François Vaillancourt

16. Staying Together? Scotland and the Rest of the United Kingdom
David Bell

Index
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