Final published version
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Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Redistributive fiscal policies and regional economic disparities
AU - Olayele, B.F.
AU - Soo, K.T.
PY - 2020/12/31
Y1 - 2020/12/31
N2 - Finding a definitive answer to the question of whether fiscal redistribution is harmful or beneficial for regional economic performance is not straightforward. This paper disentangles the key components of fiscal redistribution in a regional Canada-US setting. Redistributive spending is calibrated as the difference between pretax personal income, and personal income after federal taxes and transfers. Based largely on fixed effects and dynamic panel methods, our findings support the battery of studies on the mixed evidence concerning the relationship between fiscal redistribution and per capita income. To the extent that results are sensitive to estimation methods and functional specifications, the study underscores the importance of unbundling the components of a redistributive fiscal package in a bid to establish optimal thresholds for effective policy interventions.
AB - Finding a definitive answer to the question of whether fiscal redistribution is harmful or beneficial for regional economic performance is not straightforward. This paper disentangles the key components of fiscal redistribution in a regional Canada-US setting. Redistributive spending is calibrated as the difference between pretax personal income, and personal income after federal taxes and transfers. Based largely on fixed effects and dynamic panel methods, our findings support the battery of studies on the mixed evidence concerning the relationship between fiscal redistribution and per capita income. To the extent that results are sensitive to estimation methods and functional specifications, the study underscores the importance of unbundling the components of a redistributive fiscal package in a bid to establish optimal thresholds for effective policy interventions.
KW - federalism
KW - fiscal policies
KW - redistribution
KW - regional economy
U2 - 10.1080/23322039.2020.1853326
DO - 10.1080/23322039.2020.1853326
M3 - Journal article
VL - 8
JO - Cogent Economics and Finance
JF - Cogent Economics and Finance
SN - 2332-2039
IS - 1
M1 - 1853326
ER -