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Income inequality, fiscal decentralization and transfer dependency

Author: Caroline-Antonia Goerl; Mike Seiferling; International Monetary Fund. Statistics Department.
Publisher: [Washington, D.C.] : International Monetary Fund, ©2014.
Series: IMF working paper, WP/14/64.
Edition/Format:   eBook : Document : International government publication : EnglishView all editions and formats
Summary:
"Within the context of reigniting post crisis macroeconomic growth, income inequality has emerged as a topic of significant interest for both academics and policymakers (Bastagli, Coady, and Gupta, 2012) This study builds on past literature on fiscal decentralization suggesting that redistribution is most effectively carried out at sub-central levels of government. Using the IMF's multi-sector Government Finance  Read more...
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Genre/Form: Electronic books
Material Type: Document, Government publication, International government publication, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Caroline-Antonia Goerl; Mike Seiferling; International Monetary Fund. Statistics Department.
ISBN: 9781475516845 1475516843
OCLC Number: 879651709
Notes: "Statistics Department"--Page 2 of pdf.
"April 2014"--Page 2 of pdf.
Description: 1 online resource (26 pages) : illustrations.
Series Title: IMF working paper, WP/14/64.
Responsibility: Caroline-Antonia Goerl and Mike Seiferling.

Abstract:

"Within the context of reigniting post crisis macroeconomic growth, income inequality has emerged as a topic of significant interest for both academics and policymakers (Bastagli, Coady, and Gupta, 2012) This study builds on past literature on fiscal decentralization suggesting that redistribution is most effectively carried out at sub-central levels of government. Using the IMF's multi-sector Government Finance Statistics Yearbook database, this paper tests the impact of decentralized redistribution on income inequality for a globally representative sample of countries since 1980. The findings suggest that the decentralization of government expenditure can help achieve a more equal distribution of income. However, several conditions need to be fulfilled: i) the government sector needs to be sufficiently large, ii) decentralization should be comprehensive, including redistributive government spending, and, iii) decentralization on the expenditure side should be accompanied by adequate decentralization on the revenue side, such that subnational governments rely primarily on their own revenue sources as opposed to intergovernmental transfers"--Abstract.

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