Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/270020 
Year of Publication: 
2020
Citation: 
[Journal:] Cogent Economics & Finance [ISSN:] 2332-2039 [Volume:] 8 [Issue:] 1 [Article No.:] 1853326 [Year:] 2020 [Pages:] 1-19
Publisher: 
Taylor & Francis, Abingdon
Abstract: 
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.
Subjects: 
federalism
fiscal policies
redistribution
regional economy
JEL: 
H23
H3
H77
R11
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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