Personal and regional redistribution through public finance : The case of provincial governments in Argentina

In a federal system, income distribution is affected by the decision of many public economic agents in at least two dimensions: personal and regional. Through public budgeting, and the interaction of expenditures and taxes, a subnational government typically affects the personal distribution of inco...

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Autores principales: Cont, Walter Alberto, Peluffo, Cecilia, Porto, Alberto
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2009
Materias:
Ciencias Económicas
Financiación pública
Redistribución del ingreso
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/165086
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SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-165086
record_format dspace
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
Financiación pública
Redistribución del ingreso
spellingShingle Ciencias Económicas
Financiación pública
Redistribución del ingreso
Cont, Walter Alberto
Peluffo, Cecilia
Porto, Alberto
Personal and regional redistribution through public finance : The case of provincial governments in Argentina
topic_facet Ciencias Económicas
Financiación pública
Redistribución del ingreso
description In a federal system, income distribution is affected by the decision of many public economic agents in at least two dimensions: personal and regional. Through public budgeting, and the interaction of expenditures and taxes, a subnational government typically affects the personal distribution of income, and also the regional distribution of income if the subnational budget is financed with national taxes, through revenue-sharing (coparticipation) regimes -because this regime redistributes tax revenues among provinces. Most research in this field focuses on the impact of public budget on either personal or regional distribution of income. Very few papers integrate both effects. This paper studies the impact of provincial government budgets (which represent around 50% of total public expenditures, and around 60% of funds to finance them comes from revenue-sharing) on the distribution of income in Argentina using budget information for year 2004. This paper reveals the importance of considering the impact of fiscal policy on income distribution at the provincial level, because effects are different by province. The aggregation of provinces hides inter-provincial effects because some province may finance or benefit from the revenue-sharing scheme. Taking this effect into consideration, we find that the progressiveness of subnational expenditures and taxes interact with the revenuesharing regime, reinforcing progressivity in “net-receiving” provinces but creating a trade-off between progressivity and (negative) regional transfer in “net-financing” ones. In the latter provinces, however, the net effect of provincial budget is also progressive.
format Objeto de conferencia
Objeto de conferencia
author Cont, Walter Alberto
Peluffo, Cecilia
Porto, Alberto
author_facet Cont, Walter Alberto
Peluffo, Cecilia
Porto, Alberto
author_sort Cont, Walter Alberto
title Personal and regional redistribution through public finance : The case of provincial governments in Argentina
title_short Personal and regional redistribution through public finance : The case of provincial governments in Argentina
title_full Personal and regional redistribution through public finance : The case of provincial governments in Argentina
title_fullStr Personal and regional redistribution through public finance : The case of provincial governments in Argentina
title_full_unstemmed Personal and regional redistribution through public finance : The case of provincial governments in Argentina
title_sort personal and regional redistribution through public finance : the case of provincial governments in argentina
publishDate 2009
url http://sedici.unlp.edu.ar/handle/10915/165086
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AT portoalberto personalandregionalredistributionthroughpublicfinancethecaseofprovincialgovernmentsinargentina
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spelling I19-R120-10915-1650862024-04-19T20:09:13Z http://sedici.unlp.edu.ar/handle/10915/165086 Personal and regional redistribution through public finance : The case of provincial governments in Argentina Cont, Walter Alberto Peluffo, Cecilia Porto, Alberto 2009-11 2009 2024-04-19T18:34:02Z en Ciencias Económicas Financiación pública Redistribución del ingreso In a federal system, income distribution is affected by the decision of many public economic agents in at least two dimensions: personal and regional. Through public budgeting, and the interaction of expenditures and taxes, a subnational government typically affects the personal distribution of income, and also the regional distribution of income if the subnational budget is financed with national taxes, through revenue-sharing (coparticipation) regimes -because this regime redistributes tax revenues among provinces. Most research in this field focuses on the impact of public budget on either personal or regional distribution of income. Very few papers integrate both effects. This paper studies the impact of provincial government budgets (which represent around 50% of total public expenditures, and around 60% of funds to finance them comes from revenue-sharing) on the distribution of income in Argentina using budget information for year 2004. This paper reveals the importance of considering the impact of fiscal policy on income distribution at the provincial level, because effects are different by province. The aggregation of provinces hides inter-provincial effects because some province may finance or benefit from the revenue-sharing scheme. Taking this effect into consideration, we find that the progressiveness of subnational expenditures and taxes interact with the revenuesharing regime, reinforcing progressivity in “net-receiving” provinces but creating a trade-off between progressivity and (negative) regional transfer in “net-financing” ones. In the latter provinces, however, the net effect of provincial budget is also progressive. En un sistema federal, la distribución del ingreso es afectada por las decisiones del gobierno (nacional, provincial, municipal) en al menos dos dimensiones: personal y regional. A través del presupuesto público, y de la interacción entre impuestos y gastos, las decisiones de un gobierno provincial impactan sobre la distribución personal del ingreso. Por su parte, la distribución regional del ingreso también se ve afectada si los presupuestos provinciales se financian con regímenes de transferencias desde la nación (por ejemplo, vía coparticipación de impuestos), porque estos regímenes redistribuyen recursos entre provincias. La mayoría de los trabajos de investigación se concentran en el impacto del presupuesto público sobre la distribución personal o regional del ingreso separadamente, mientras que solo unos pocos integran ambos efectos. Este paper analiza el impacto del presupuesto público provincial (que representa aproximadamente la mitad del gasto público consolidado, mientras que aproximadamente 60% de los recursos para afrontarlo provienen de regímenes de transferencias) sobre la distribución del ingreso en Argentina utilizando información presupuestaria del afio 2004. El mismo revela la importancia de considerar el impacto de la política fiscal sobre la distribución del ingreso a nivel provincial, ya que los efectos difieren por provincia y la agregación de provincias esconde efectos interprovinciales (de provincias financiadoras a provincias receptoras netas). En las provincias receptoras netas la progresividad del presupuesto provincial se refuerza por el efecto (positivo) de las transferencias mientras en las jurisdicciones financiadoras se produce un trade-off entre progresividad y el efecto (negativo) de las transferencias. En este grupo, sin embargo, el efecto neto del presupuesto provincial es progresivo. Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf

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