In the literature on ﬁscal federalism, vertical ﬁscal imbalance has been widely studied, while the theme of horizontal ﬁscal imbalance and inequality among local governments, due to diﬀerences in their ﬁscal capacities, has been less explored. This article contributes to ﬁll the gap. A new method to compute ﬁscal capacities based on regression analysis is proposed, which can overcome some of the drawbacks of traditional methods such as the representative tax system. This new approach is then employed to evaluate the ﬁscal capacities of Italian municipalities over the period 2002–2010. Finally two global measures of the horizontal ﬁscal imbalance are used to evaluate the equity implication of a major policy change occurred in 2008 in Italian municipal ﬁnance.
|Titolo:||Measuring horizontal fiscal imbalance: the case of Italian municipalities|
|Data di pubblicazione:||2016|
|Appare nelle tipologie:||1.1 Articolo in rivista|