The Effects of Fiscal Decentralization on Household Income Inequality: Some Empirical Evidence

Sacchi, Agnese; Salotti, Simone

doi:10.1080/17421772.2013.833343

Cited by 59 publications

(35 citation statements)

References 71 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Earth observation allowed us to calculate the Night Light Development Index (NLDI) which we used to measure regional inequality. This index is calculated based on the methodology for the calculation of the Gini coefficient, commonly used to measure regional inequality [43,48,53,67].…”

Section: Methodsmentioning

confidence: 99%

“…At the same time, to our knowledge, this is the first attempt to introduce EO solutions in measuring SDG 10 at the sub-national level.We chose Romania as the study area for three reasons: it is one of the most unequal countries of the European Union (EU) [34-40]; these regional inequalities have been generated in the last 20 years [41][42][43]; and the country has started an economic development process from a low level, making it very suitable for the application of night-time light data from satellite imagery [44]. However, the results are not limited to the area of study, as will be shown in the following parts of the article.The literature on regional inequalities focused until recently on local tax income from household surveys and GDP per capita from national accounts, as a complex measure of economic development highlighting inter-regional differentials worldwide [34,[45][46][47][48][49][50][51][52][53] or applying case studies in a Romanian context [34][35][36]42].However, the above-mentioned economic indicators used to measure regional inequalities have several limitations, such that GDP is measured directly only at the national level, while at the regional level it is calculated indirectly with a two-year delay compared to the national one [3,54]. Compared to traditional statistical data, night-time lights satellite images have a number of advantages: regional inequality can be calculated locally in real time (instead of waiting two years for the indirect calculations from national accounts); they have higher temporal resolution; and they can be obtained free of charge.…”

mentioning

confidence: 99%

“…The literature on regional inequalities focused until recently on local tax income from household surveys and GDP per capita from national accounts, as a complex measure of economic development highlighting inter-regional differentials worldwide [34,[45][46][47][48][49][50][51][52][53] or applying case studies in a Romanian context [34][35][36]42].…”

mentioning

confidence: 99%

See 2 more Smart Citations

Potential of Night-Time Lights to Measure Regional Inequality

et al. 2019

View full text Add to dashboard Cite

Night-time lights satellite images provide a new opportunity to measure regional inequality in real-time by developing the Night Light Development Index (NLDI). The NLDI was extracted using the Gini coefficient approach based on population and night light spatial distribution in Romania. Night-time light data were calculated using a grid with a 0.15 km 2 area, based on Defense Meteorological Satellite Program (DMSP) /Operational Linescan System (OLS satellite imagery for the 1992-2013 period and based on the National Polar-orbiting Partnership-Visible Infrared Imaging Radiometer Suite (NPP-VIIRS) satellite imagery for the 2014-2018 period. Two population density grids were created at the level of equal cells (0.15 km 2 ) using ArcGIS and PostgreSQL software, and census data from 1992 and 2011. Subsequently, based on this data and using the Gini index approach, the Night Light Development Index (NLDI) was calculated within the MATLAB software. The NLDI was obtained for 42 administrative counties (nomenclature of territorial units for statistics level 3 (NUTS-3 units)) for the 1992-2018 period. The statistical relationship between the NLDI and the socio-economic, demographic, and geographic variables highlighted a strong indirect relationship with local tax income and gross domestic product (GDP) per capita. The polynomial model proved to be better in estimating income based on the NLDI and R 2 coefficients showed a significant improvement in total variation explained compared to the linear regression model. The NLDI calculated on the basis of night-time lights satellite images proved to be a good proxy for measuring regional inequalities. Therefore, it can play a crucial role in monitoring the progress made in the implementation of Sustainable Development Goal 10 (reduced inequalities).The adoption of the 2030 Agenda with its 17 Sustainable Development Goals (SDGs) created a framework for a radical change in the use of geospatial and EO solutions: 60% of the 169 SDG-related targets and 232 indicators can be directly monitored with EO solutions [4]. SDG 10 aims at reducing inequalities, which include, among other actions, empirical evidence production and monitoring the evolution of inequalities within and among countries. The monitoring of the latter is not difficult for most countries where national accounts and national statistical offices have been established [33]. The difficulties are related to the measurement of sub-national regional inequalities, with two shortcuts: scarce statistical data and a considerable time delay in calculating regional GDPs. Our study links statistical and geospatial frameworks for improved monitoring and reporting on SDG 10. At the same time, to our knowledge, this is the first attempt to introduce EO solutions in measuring SDG 10 at the sub-national level.We chose Romania as the study area for three reasons: it is one of the most unequal countries of the European Union (EU) [34-40]; these regional inequalities have been generated in the last 20 years [41][42][43]; and the country ...

show abstract

Section: Methodsmentioning

confidence: 99%

mentioning

confidence: 99%

See 1 more Smart Citation

Potential of Night-Time Lights to Measure Regional Inequality

et al. 2019

View full text Add to dashboard Cite

show abstract

“…Related to that, a number of authors have recently started to investigate the different implications of revenue versus expenditure decentralization in relation to GDP growth (e.g., Jin and Zou 2005;Gemmell et al 2013), fiscal discipline (e.g., Afonso and Hauptmeier 2009;Escolano et al 2012), or income distribution (Boadway et al 2003;Sacchi and Salotti 2013). As expected, this has resulted in different empirical findings depending on the series used to measure fiscal decentralization, i.e.…”

Section: Introductionmentioning

confidence: 99%

Can Fiscal Decentralization Alleviate Government Consumption Volatility?

2016

Self Cite

View full text Add to dashboard Cite

A relevant mismatch between tax and expenditure decentralization characterizes many industrialized countries. The former is usually less pronounced than the latter, resulting in asymmetric fiscal decentralization arrangements. We investigate the nature of this asymmetry using a theoretical framework that explains why it is difficult to tackle it, despite a consensus on the benefits of a wellbalanced decentralization process. We find that asymmetry is intrinsic to fiscal decentralization, even in a scenario where clear advantages from well-developed decentralized systems arise. This implies that both empirical and theoretical contributions would benefit by taking into account the welfarereducing asymmetric nature of fiscal decentralization.

show abstract

“…Beside, it also showed a positive and significant influence between the fiscal capacities to financial independence. Sacchi and Salotti (2014a), investigating the effects of fiscal decentralization on household income inequality, for a sample of 23 OECD countries over the period of 1971-2000, find that a higher degree of tax decentralization is associated with a more unequal distribution of income within a country. More recently, Sepúlveda and Martinez-Vazquez (2011) proved that higher levels of fiscal decentralization appears to reduce poverty as long as the share of sub-national expenditure is not greater than one-third of total government expenditure.…”

Section: Literature Reviewmentioning

confidence: 99%

The Relation of Fiscal Decentralization, Regional Finance and Social Justice for the Local Development of Indonesia

Simanjuntak¹,

Mukhlis²

2016

AEF

View full text Add to dashboard Cite

This study aims to analyze the relationship between fiscal decentralization, fiscal capacity, financial independence and financial expenditure areas in achieving social justice. In this case, the East Java Province Indonesia is supported by the existence of local government district / municipality became the main object of study during 2010 -2014. The needed data are such as; financial balance data, regional revenue, the amount of local spending and social justice data on people's lives. Data analysis method used is Partial Least Square (PLS). The results provide the conclusion that the implementation of the fiscal decentralization policy gives positive and significant impact on local fiscal capacity. Fiscal capacity gives positive and significant impact on the local financial independence. Local financial independence gives positive and significant impact on the structure of the shopping area. The structure of local government spending has a significant effect on the achievement of social justice areas. In this case, the fiscal capacity and financial independence have no direct impact significantly on the achievement of social justice in the various districts / cities in East Java. In addition, this study also provides important conclusion that there is a significant indirect effect of fiscal decentralization on social justice through local fiscal capacity, local financial independence and the structure of local government spending.

show abstract

The Effects of Fiscal Decentralization on Household Income Inequality: Some Empirical Evidence

Cited by 59 publications

References 71 publications

Potential of Night-Time Lights to Measure Regional Inequality

Potential of Night-Time Lights to Measure Regional Inequality

Can Fiscal Decentralization Alleviate Government Consumption Volatility?

The Relation of Fiscal Decentralization, Regional Finance and Social Justice for the Local Development of Indonesia

Contact Info

Product

Resources

About