Narrowing Vertical Fiscal Imbalances in Four European Countries

March 1, 2012

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper describes the institutional changes that have induced a decline in the vertical fiscal imbalance (VFI) - defined as the share of sub-national own spending not financed through own revenues - in four European countries: Belgium, Italy, Norway, and Spain. The decline in VFI was achieved through progressive devolution of revenues to sub-national governments in Belgium, Italy, and Spain, while re-centralization of health sector expenditures was the cause of the decline in the VFI in Norway.

Subject: Expenditure, Fiscal policy, Fiscal stance, Health, Health care, Health care spending, Revenue administration

Keywords: AC status, aggregate VFI, aggregate VFI., central government, decentralization, Europe, Federalism, fiscal balance, Fiscal stance, government, government autonomy, Health care, Health care spending, local governments, Northern Europe, regime ACs, revenue devolution, vertical fiscal imbalance, VFI indicator, WP

Pages:
22
Volume:
2012
DOI:
---
Issue:
091
Series:
Working Paper No. 2012/091
Stock No:
WPIEA2012091
ISBN:
9781475502664
ISSN:
1018-5941

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