Fiscal Institutions and the Size and Inter-Regional Distribution of Public Redistribution: Instituciones Fiscales y el Tamaño y Distribución Inter-Regional de la Redistribución Pública

Raul A. Ponce-Rodriguez; Juan Medina-Guirado

doi:10.29105/ensayos37.1-1

Authors

Raul A. Ponce-Rodriguez Universidad Autónoma de Ciudad Juárez, Instituto de Ciencias Sociales y Administración
Juan Medina-Guirado Universidad Autónoma de Ciudad Juárez, Instituto de Ciencias Sociales y Administración

DOI:

https://doi.org/10.29105/ensayos37.1-1

Keywords:

Redistribution, Inter-regional externalities, Federalism, Structure and scope of government

Abstract

Fiscal institutions, which are responsible for the delegation of tax and spending powers among different tiers of governments, are important determinants of the size and efficiency of public redistribution. In this paper we develop a comparative analysis of the impact of fiscal decentralization vis-à-vis tax revenue sharing on the government’s effort to redistribute income. The main findings are: first, the size of the national budget for public redistribution is the same under fiscal decentralization and tax revenue sharing. Second, different fiscal institutions lead to different regional distributions of public transfers. Third, when choosing between decentralization and tax revenue sharing, there is a tradeoff between the efficiency and the regional effort of the government to redistribute income.

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Author Biographies

Raul A. Ponce-Rodriguez, Universidad Autónoma de Ciudad Juárez, Instituto de Ciencias Sociales y Administración

Universidad Autónoma de Ciudad Juárez, Instituto de Ciencias Sociales y Administración, Heroico Colegio Militar y Av. Universidad No. 3775, Zona Chamizal, 32310, Ciudad Juárez, Chihuahua, México.

Juan Medina-Guirado, Universidad Autónoma de Ciudad Juárez, Instituto de Ciencias Sociales y Administración

Universidad Autónoma de Ciudad Juárez, Instituto de Ciencias Sociales y Administración,

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