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Decentralisation and income inequality in Central and Eastern European countries.

Authors :
Makreshanska-Mladenovska, Suzana
Petrevski, Goran
Source :
Post-Communist Economies; Jan2019, Vol. 31 Issue 1, p123-136, 14p, 2 Charts, 4 Graphs
Publication Year :
2019

Abstract

This paper provides empirical evidence for the association between fiscal decentralisation and income distribution for a panel of 11 economies from Central and Eastern Europe (CEE) during 1992-2016. We focus on three research topics: the effect of decentralisation on income inequality; the effects of the structure of subnational government finance on income inequality; and the validity of the Kuznets hypothesis. The main findings from the empirical exercise are as follows: first, we provide firm evidence on the presumed favourable effects of fiscal decentralisation on income distribution in the CEE countries; second, our empirical model suggests that the effects of fiscal decentralisation on income inequality are dependent on the source of finance of subnational governments, i.e. intergovernmental transfers may have a role in income equalisation; third, we cannot confirm the validity of the Kuznets hypothesis in CEE countries. [ABSTRACT FROM AUTHOR]

Details

Language :
English
ISSN :
14631377
Volume :
31
Issue :
1
Database :
Complementary Index
Journal :
Post-Communist Economies
Publication Type :
Academic Journal
Accession number :
133507286
Full Text :
https://doi.org/10.1080/14631377.2018.1461526