The Impact of Globalization on Subnational Expenditures: Efficiency and Compensation Effects (original) (raw)

ID : 1923-7529-2016-02-75-18 Walter Cont , and Alberto Porto ~ 75 ~ Fiscal Policy and Income Distribution : Measurement for Argentina 1995 – 2010 1

This paper studies the effect of consolidated-national and provincial-fiscal policy on personal income distribution in Argentina, building a novel panel data for 1995-2010. We find that fiscal policy reduces income inequality, summarized with the Gini coefficient, by 0.06 in 1995-2001 (out of an ex ante average value of 0.490), and 0.08 in 2003-2010 (out of 0.497). Expenditures (mainly social services) are the tool for redistribution because taxes are regressive. Provincial expenditures account for two-thirds of the reduction in the Gini coefficient, indicating that there is no incompatibility between decentralization and redistribution. The contribution in-kind expenditures to redistribution is more important than that of cash transfers; although the latter gain relevance in 2003-2010. The impact of social expenditures and income taxes on the Gini coefficient is similar to effects found in other Latin American countries, but significantly lower than results found for OECD and European Union countries. The case of Argentina may provide useful lessons for other federal countries, in particular, considering all the expenditures and taxes and the responsibility of the different levels of governments and their effect on income distribution.

Fiscal Policy and Income Distribution: Measurement for Argentina 1995 ¨C 2010

Review of Economics and Finance, 2016

This paper studies the effect of consolidated ¨Cnational and provincial¨C fiscal policy on personal income distribution in Argentina, building a novel panel data for 1995-2010. We find that fiscal policy reduces income inequality, summarized with the Gini coefficient, by 0.06 in 1995- 2001 (out of an ex ante average value of 0.490), and 0.08 in 2003-2010 (out of 0.497). Expenditures (mainly social services) are the tool for redistribution because taxes are regressive. Provincial expenditures account for two-thirds of the reduction in the Gini coefficient, indicating that there is no incompatibility between decentralization and redistribution. The contribution in-kind expenditures to redistribution is more important than that of cash transfers; although the latter gain relevance in 2003-2010. The impact of social expenditures and income taxes on the Gini coefficient is similar to effects found in other Latin American countries, but significantly lower than results found for OECD and ...

The Relationship between Globalization-Public Expenditure on the Basis of the Compensation and Efficiency Hypotheses

Optimum Ekonomi ve Yönetim Bilimleri Dergisi, 2022

The study, which deals with the changes created by the globalization indicators on the public sector, is shaped on the basis of the compensation and efficiency hypothesis. In this context, it has been investigated how the government size is affected due to the fact that the effects of globalization are felt more with the shift of transition countries from centrally planned economy to free market economy. According to panel OLS and causality test results, increases in economic freedom index, one of the globalization indicators, decrease public consumption expenditure. In this context, the efficiency hypothesis is valid for Albania,

Efectos de las transferencias federales sobre la convergencia regionalen indicadores de desarrollo humano en Argentina

Investigaciones Regionales, 2013

We analyse regional convergence between Argentine provinces in well-being indicators for the period 1970-2001. More specifically, we examine the role of regional public policy in reducing the development gap between the provinces. We find strong evidence of conditional convergence in well-being indicators. However, we find no evidence that redistributive transfers from the federal government to the provinces have had a positive effect on convergence in these indicators. In fact, we find that for some schooling, health and housing measures, the effect of federal transfers on improvement rates might have been contrary to what was expected.

Social Spending and Income Redistribution in Argentina during the 2000s

Public Finance Review, 2013

Between 2003 and 2009, Argentina’s social spending as a share of gross domestic product increased by 7.6 percentage points. Benefit incidence analysis for 2003, 2006, and 2009 suggests that the contribution of cash transfers to the reduction of disposable income inequality and poverty rose markedly between 2006 and 2009, primarily due to the introduction of a new noncontributory pension program—known as the pension moratorium—in 2004. The redistributive impact of the expansion of public spending on education and health was also sizable and equalizing, but to a lesser degree. An assessment of fiscal funding sources puts the sustainability of the redistributive policies into question, unless nonsocial spending is significantly cut.