Subject: Fiscal decentralisation; fiscal transfers; inequality; Central and Eastern Europe; panel data models
Year: 2019
Type: Journal Article
Title: Decentralisation and Income Inequality in Central and Eastern European Countries
Author: Makreshanska mladenovska, Suzana
Author: Petrevski, Goran
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.
Publisher: Taylor & Francis
Relation: Post-Communist Economies
Identifier: oai:repository.ukim.mk:20.500.12188/6806
Identifier: Makreshanska Mladenovska, S., and Petrevski. G., (2019) “Decentralisation and income inequality in Central and Eastern European countries” Post-Communist Economies, Vol.31 No.1, pp. 123-136
Identifier: http://hdl.handle.net/20.500.12188/6806Identifier: 10.1080/14631377.2018.1461526
