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  • 1
    Language: English
    Pages: 1 Online-Ressource (circa 48 Seiten) , Illustrationen
    Series Statement: OECD Economics Department working papers no. 1330
    Keywords: 1995-2011 ; Finanzbeziehungen ; Räumliche Verteilung ; OECD-Staaten ; Urban, Rural and Regional Development ; Economics ; Amtsdruckschrift ; Arbeitspapier ; Graue Literatur
    Abstract: Fiscal decentralisation can lead to a more efficient provision of local public goods and services and promote a better match between policies and citizens’ preferences. At the same time, however, there are concerns about whether all regions will gain from more autonomy. Decentralisation may not lift all boats, with “poor” regions losing competitiveness with respect to better endowed ones, thus increasing regional disparities. The present work investigates the relationship between fiscal decentralisation and regional inequality within countries. Particular attention is paid to the different channels through which decentralisation can affect disparities: taxing powers, spending autonomy and the vertical fiscal imbalance. The empirical analysis, which is conducted on a sample of 30 OECD countries for the period 1995-2011, suggests that a balanced fiscal structure, where local spending is mainly financed by local taxation, reduces regional disparities, by providing an incentive to better use local resources and implement policies that favour economic development.
    Note: Zusammenfassung in französischer Sprache
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  • 2
    Language: English
    Pages: 1 Online-Ressource (circa 47 Seiten) , Illustrationen
    Series Statement: OECD Economics Department working papers no. 1331
    Keywords: 1996-2011 ; Finanzbeziehungen ; Einkommensverteilung ; Gini-Koeffizient ; OECD-Staaten ; Economics ; Amtsdruckschrift ; Arbeitspapier ; Graue Literatur
    Abstract: This paper investigates the relationship between fiscal decentralisation and economy-wide disposable income inequality. Drawing on a dataset of up to 20 OECD countries over a period from 1996 to 2011, a regression analysis is performed, relating several indicators of national income inequality and a wide array of fiscal decentralisation indicators. The results indicate a weak, inequality-reducing relationship between decentralisation and income inequality, as measured by the Gini coefficient, but the effect is rather small and unstable across specifications. Fine-graining the analysis by using income percentile ratios, in turn, produces more significant and stable results. It shows that the effects of fiscal decentralisation are not the same along the income distribution. While decentralisation tends to be associated with a reduction in income inequality between high incomes and the median, it is linked to a divergence of low income groups from the median, notably via sub-central tax autonomy. Transfers between levels of government also tend to increase the gap between lower and middle incomes. Interpreting these effects jointly, it seems that mainly middle income earners benefit from fiscal decentralisation. Finally, some insights on decentralisation and regional income inequality are presented. At first sight, fiscal decentralisation does not seem to be associated with income sorting in large jurisdictions, but a more fine-grained analysis is required to answer this question.
    Note: Zusammenfassung in französischer Sprache
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  • 3
    Language: English
    Pages: 1 Online-Ressource (circa 20 Seiten) , Illustrationen
    Series Statement: OECD economic policy paper no. 17 (September 2016)
    Series Statement: OECD Economic Policy Papers no.17
    Keywords: Finanzausgleich ; Räumliche Verteilung ; Wirtschaftliche Konvergenz ; OECD-Staaten ; Economics ; Arbeitspapier ; Graue Literatur
    Abstract: Across the OECD, GDP per capita is converging. In contrast, regional disparities – or differences in GDP per capita across jurisdictions – are rising, mainly as a result of widening productivity differences. Fiscal decentralisation could help reduce them again. According to new OECD research, assigning more ownsource revenue to sub-national governments dampens regional GDP disparities and underpins regional convergence. In more decentralised settings, catching-up regions appear to adopt policy innovations more rapidly and their policy innovations have a stronger impact. Conversely, intergovernmental grants tend to fuel disparities, probably because they discourage lagging regions to develop their economic and fiscal base. However, when replacing intergovernmental transfers by own-source revenue, lower disparities in regional output may come at the cost of larger disparities in regional income and more unequal public service standards. Reforms to intergovernmental fiscal frameworks should therefore be two-pronged: a rise in sub-national own-source revenue should be paired with a re-design of intergovernmental transfers and fiscal equalisation, in order to make all jurisdictions enjoy the benefits of more sub-central fiscal power.
    Note: Zusammenfassung in französischer Sprache
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  • 4
    Language: English
    Pages: 1 Online-Ressource (38 p.) , 21 x 29.7cm.
    Series Statement: OECD Working Papers on Fiscal Federalism no.4
    Keywords: Taxation
    Abstract: Fiscal equalisation is a transfer of fiscal resources across jurisdictions with the aim of offsetting differences in revenue raising capacity or public service cost. Its principal objective is to allow sub-central governments to provide their citizens with similar sets of public services at a similar tax burden. Fiscal equalisation can be seen as the natural companion to fiscal decentralisation as it aims at correcting potential imbalances resulting from sub-central autonomy. If sub-central governments had no fiscal power, no fiscal equalisation would be needed. Distinct fiscal equalisation arrangements first emerged during the 1940s and 1950s in a number of federal countries, and today most OECD Member countries have introduced some explicit or implicit fiscal arrangement that reduces fiscal disparities across jurisdictions. The significance of fiscal equalisation is highlighted not only by its extensive use in both federal and unitary countries, but also by the fact that its objectives and principles are often laid down in the constitution and hence form a central pillar of national fiscal policy.
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  • 5
    Language: English
    Pages: 1 Online-Ressource (32 p.) , 21 x 29.7cm.
    Series Statement: OECD Working Papers on Fiscal Federalism no.12
    Keywords: Taxation
    Abstract: The world is recovering from the worst economic and financial crisis since the Great Depression. The recovery will probably be shallow and government deficits could remain very large over the next few years in a number of countries. The crisis has a negative impact not only on central governments, but also on sub-national governments. While the situation varies from country to country, depending on the institutional environment, types of revenue sources and spending responsibilities, an increasing number of sub-national governments are facing budget imbalances, as the economic slump is putting upward pressure on spending, while pushing down tax revenues.
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  • 6
    Language: English
    Pages: 32 p. , 21 x 29.7cm
    Series Statement: OECD Economics Department Working Papers no.752
    Keywords: Economics
    Abstract: The world is recovering from the worst crisis since the Great Depression, leaving a strong and lasting impact on Member countries’ public finances. This paper analyses how sub-central governments (SCG) are affected and how fiscal policy has reacted in the first months after the outbreak of the crisis. In general and in line with earlier downturns, SCG’s public finance appear to be less affected than central governments. However, SCGs suffer from a scissors effect of higher spending and lower tax revenue, specially those with a volatile tax base and large social welfare responsibilities. While some SCGs were conducting their own stimulus plans, others cut expenditures and raised taxes, potentially undermining national government’s recovery programmes. Most national governments are helping SCGs to cope with the crisis, by disbursing additional grants and supporting investment programmes, by easing centrally-imposed fiscal rules, lifting borrowing constraints or by temporarily raising the sub-central tax share. The crisis also showed the need for better coordination in intergovernmental fiscal relations, both for more macroeconomic coherence and for efficiency in public service delivery. Several countries are creating or reinvigorating their institutions for managing relations across levels of government.
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  • 7
    Online Resource
    Online Resource
    Paris : OECD Publishing
    In:  OECD journal: economic studies Vol. 2008, no. 1, p. 1-22
    ISSN: 1995-2856
    Language: English
    Pages: 22 p
    Parallel Title: Parallelausg. Péréquation financière
    Titel der Quelle: OECD journal: economic studies
    Publ. der Quelle: Paris : Organisation for Economic Cooperation & Development, 2008
    Angaben zur Quelle: Vol. 2008, no. 1, p. 1-22
    Keywords: Economics
    Abstract: By Hansjörg Blöchliger and Claire Charbit Fiscal equalisation is a transfer of fiscal resources across jurisdictions to offset disparities in revenue raising capacity or public service cost. It covers on average 2.5% of GDP or 5% of total government expenditure across OECD countries. Equalisation reduces fiscal disparities by two-thirds on average and in some countries levels them virtually out. Strong equalisation comes at a price: on average, around 70% of a jurisdiction’s additional tax income must be dedicated to an equalisation fund. The equalisation rate is generally higher for jurisdictions with low fiscal capacity, reducing their tax effort and likely to slow down regional economic convergence. Cost equalisation is larger than revenue equalisation in terms of GDP despite smaller cost disparities, pointing at inefficiencies in the distribution formulae. Fiscal equalisation can be pro-cyclical but most countries succeed in reducing fluctuations of entitlements, sometimes at the cost of sub-central budget needs. Fiscal equalisation is very country specific, and data and analysis must be taken with care.
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  • 8
    Online Resource
    Online Resource
    Paris : OECD Publishing
    Language: French
    Pages: 1 Online-Ressource (28 p.)
    Parallel Title: Parallele Sprachausgabe Fiscal equalisation
    Keywords: Economics
    Abstract: La péréquation financière constitue un transfert de ressources budgétaires entre les autorités infranationales visant à compenser les disparités territoriales en termes de capacité fiscale ou de coût des services publics. Ce transfert représente 2.5 % du PIB ou 5 % de l’ensemble des dépenses publiques en moyenne pour l’ensemble des pays de l’OCDE. La péréquation permet de réduire de deux tiers en moyenne les disparités financières voire de virtuellement les combler entièrement dans certains pays. Cependant la péréquation ne va pas sans coût : en moyenne près de 70 % du revenu fiscal additionnel d’une autorité infranationale se trouve dédié à un fonds national de péréquation. Le taux de péréquation est en général plus élevé pour les collectivités territoriales disposant d’une faible capacité fiscale, ce qui limite leur effort fiscal et risque de ralentir la convergence économique entre les régions. La péréquation selon les coûts représente un pourcentage de PIB plus important que celle qui repose sur les revenus, et ce bien que les disparités soient moins élevées en termes de coût qu’en termes de revenus. Ce constat souligne les inefficacités des formules de péréquation. En particulier, la péréquation financière peut s’avérer pro-cyclique même si la plupart des pays parviennent à contenir les variations des engagements de dépense des collectivités territoriales, parfois même au prix de leurs besoins budgétaires. Les systèmes de péréquation financière sont en fait très marqués par les spécificités nationales, aussi les données comme les conclusions de l’analyse comparative doivent être prises avec précaution. Par Hansjörg Blöchliger et Claire Charbit
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