Fiscal equalisation and regional development policies: Is there a case for enhanced synergies?
Fiscal equalisation and regional development policies have often been perceived as separate policy fields. As a result, little is known about their potential interactions and implications for economic growth and welfare. This working paper reviews the two policies, explores the potential for enhance...
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Other Authors: | |
Format: | Electronic eBook |
Language: | English |
Published: |
Paris
OECD Publishing
2023
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Series: | OECD Regional Development Papers
no.58 |
Subjects: | |
Online Access: | DE-862 DE-863 |
Summary: | Fiscal equalisation and regional development policies have often been perceived as separate policy fields. As a result, little is known about their potential interactions and implications for economic growth and welfare. This working paper reviews the two policies, explores the potential for enhanced synergies between the two, and proposes a theoretical framework linking them. The latter, which has not been empirically tested yet, posits that if regional development policies are correctly designed and implemented, their success should result in a drop of income disparities. Coupled with good governance practices and a framework that clearly allocates responsibilities among levels of government, more equal jurisdictions would find it easier to provide similar levels of services with comparable tax rates across the country. Therefore, whilst correctly designed and implemented fiscal equalisation policies remain a tool to patch gaps that may occur due to the shifting variety of revenue potential and spending needs of subnational entities, the need and the size of fiscal equalisation transfers could be significantly reduced if regional development policies in place are effective. This working paper concludes with a discussion on the benefits and challenges of enhancing synergies between the two policies, opening the door for future in-depth research. |
Physical Description: | 1 Online-Ressource (29 Seiten) 21 x 28cm. |
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spelling | Moisio, Antti VerfasserIn aut Fiscal equalisation and regional development policies Is there a case for enhanced synergies? Antti, Moisio and Miquel, Vidal Bover Paris OECD Publishing 2023 1 Online-Ressource (29 Seiten) 21 x 28cm. Text txt rdacontent Computermedien c rdamedia Online-Ressource cr rdacarrier OECD Regional Development Papers no.58 Fiscal equalisation and regional development policies have often been perceived as separate policy fields. As a result, little is known about their potential interactions and implications for economic growth and welfare. This working paper reviews the two policies, explores the potential for enhanced synergies between the two, and proposes a theoretical framework linking them. The latter, which has not been empirically tested yet, posits that if regional development policies are correctly designed and implemented, their success should result in a drop of income disparities. Coupled with good governance practices and a framework that clearly allocates responsibilities among levels of government, more equal jurisdictions would find it easier to provide similar levels of services with comparable tax rates across the country. Therefore, whilst correctly designed and implemented fiscal equalisation policies remain a tool to patch gaps that may occur due to the shifting variety of revenue potential and spending needs of subnational entities, the need and the size of fiscal equalisation transfers could be significantly reduced if regional development policies in place are effective. This working paper concludes with a discussion on the benefits and challenges of enhancing synergies between the two policies, opening the door for future in-depth research. Finance and Investment Urban, Rural and Regional Development Taxation Vidal Bover, Miquel MitwirkendeR ctb |
spellingShingle | Moisio, Antti Fiscal equalisation and regional development policies Is there a case for enhanced synergies? Finance and Investment Urban, Rural and Regional Development Taxation |
title | Fiscal equalisation and regional development policies Is there a case for enhanced synergies? |
title_auth | Fiscal equalisation and regional development policies Is there a case for enhanced synergies? |
title_exact_search | Fiscal equalisation and regional development policies Is there a case for enhanced synergies? |
title_full | Fiscal equalisation and regional development policies Is there a case for enhanced synergies? Antti, Moisio and Miquel, Vidal Bover |
title_fullStr | Fiscal equalisation and regional development policies Is there a case for enhanced synergies? Antti, Moisio and Miquel, Vidal Bover |
title_full_unstemmed | Fiscal equalisation and regional development policies Is there a case for enhanced synergies? Antti, Moisio and Miquel, Vidal Bover |
title_short | Fiscal equalisation and regional development policies |
title_sort | fiscal equalisation and regional development policies is there a case for enhanced synergies |
title_sub | Is there a case for enhanced synergies? |
topic | Finance and Investment Urban, Rural and Regional Development Taxation |
topic_facet | Finance and Investment Urban, Rural and Regional Development Taxation |
work_keys_str_mv | AT moisioantti fiscalequalisationandregionaldevelopmentpoliciesisthereacaseforenhancedsynergies AT vidalbovermiquel fiscalequalisationandregionaldevelopmentpoliciesisthereacaseforenhancedsynergies |