Political Economy of Inter-Regional Fiscal Flows: Measurement Determinants and Effects on Country Stability (Studies in Fiscal Federalism and State-local Finance)

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. 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. -- Back Cover. 1. Inter-regional Fiscal Flows: Introduction To The Issues / Nuria 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 --- 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 --- 7. Inter-regional Fiscal Flows: Methodologies, Results And Their Determinant Factors For Spain / Marta Espasa And Nuria Bosch ---- Part Ii: Beyond The Data: Why Some Regions Get More Money. 8. Federalism And Inter-regional Redistribution / Jonathan Rodden --- 9. Decentralization By Politicians: Creation Of Grants-financed Local Jurisdictions / Stuti Khemani --- 10. The Political Rationale Of Regional Financing In Spain / Sandra Leon --- 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 ---- Part Iii: In Or Out? Regional Redistribution And The Stability Of Federations. 13. Federalism, Regional Redistribution And Country Stability / Enrico Spolaore --- 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. Edited By Nuria Bosch, Marta Espasa And Albert Solé Ollé. Includes Bibliographical References And Index. 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 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.