FISCAL EQUALIZATION AND COMPOSITION OF SUBNATIONAL GOVERNMENT SPENDING: IMPLICATIONS FOR REGIONAL CONVERGENCE
12 Users found this project useful

Fiscal equalization and composition of subnational government spending: implications for regional convergence

 

This study examines the impact of fiscal equalization payments on the composition of government spending under endogenous growth theory. Analytical conjectures stemming from the model are tested empirically. As an instrumental variable for within-province variations in provinces’ equalization entitlements, we use plausibly exogenous variations in the grant eligibility rule for the Canadian fiscal equalization system. We find that fiscal equalization payments have a significant negative effect on the share of productive expenditures and a significant positive effect on the share of unproductive government expenditures. Furthermore, the results show that fiscal equalization lowers the speed of cross-regional convergence in real gross domestic product per worker.

KEYWORDS: fiscal equalization, government spending, endogenous growth, regional convergence
 
JEL: E6, H5, H7, O4

GET THE COMPLETE PROJECT

Peace From Unilag

I cried not knowing how to go about my project but the day i searched online and saw iprojectmaster, i called and got my full project in less than 15minutes, i was shocked!


Oluchi From Michael Opara University

If you are a student and you have not used iprojectmaster materials, you are missing big time! iprojectmaster is the BEST


Uduak From Uniuyo

iProjectMaster is the best project site for students. Their works are unique and free of plagiarism!


Musa From Ahmadu Bello University

Thank you iprojectmaster for saving my life, please keep it up and may God continue to bless you people.


Samuel From Ajayi Crowther University

You guys just made life easier for students. Thanks alot iprojectmaster.com


Merry From BSU

I am now a graduate because of iprojectmaster.com, God Bless you guys for me.