National fiscal consolidations and regional inequality in Europe

Giorgio Fazio, Luca Agnello, Ricardo M. Sousa, Giorgio Fazio

Risultato della ricerca: Article

12 Citazioni (Scopus)

Abstract

Using annual data for 13 European countries over the period 1980-2008, we assess the impact of national fiscal consolidations on the income inequality of European regions. Regional dispersion increases in the outcome of consolidation episodes, particularly, when packages are more severe and implemented through spending cuts rather than tax rises. From a policy perspective, these findings suggest that fiscal consolidations driven by reductions in government spending can exacerbate regional disparities and may ultimately counteract the European policy efforts to promote territorial cohesion. Our results are robust to alternative inequality measures, the occurrence of crisis episodes and the exclusion of fiscal outliers.
Lingua originaleEnglish
pagine (da-a)59-80
Numero di pagine22
RivistaCambridge Journal of Regions, Economy and Society
Volume9
Stato di pubblicazionePublished - 2016

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All Science Journal Classification (ASJC) codes

  • Geography, Planning and Development
  • Sociology and Political Science
  • Economics and Econometrics

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