Economic Growth and Inequality: The Role of Fiscal Policies

This paper analyses the impact of different instruments of fiscal policy on economic growth as well as on income inequality, using an unbalanced panel of 43 upper-middle and high income countries for the period 1972-2006. We consider and estimate two individual equations explaining growth and inequality in order to assess the incidence of different fiscal policies. Firstly, our approach considers imposing orthogonal assumptions between growth and inequality in both equations, and secondly, it allows growth to be included in the inequality equation, and inequality to be included in the growth equation. The empirical results suggest that an increase in the size of government measured through current expenditures and direct taxes diminishes economic growth while reducing inequality, being public investment the only fiscal policy that may break this trade-off between efficiency and equity, since increases in this item reduces inequality without harming output. Therefore, the results reflect that the trade-off between efficiency and equity that governments often confront when designing their fiscal policies may be avoided.fiscal policy, inequality, growth, panel data models

Fiscal descentralization and the quality of government: evidence from panel data

In this paper we focus on the relationship between fiscal decentralization and government quality. In a sample of 29 developing and developed countries over the period 1984-1997, fiscal decentralization has a positive effect on institutional quality but this effect diminishes as countries become wealthier. Moreover, the positive effect of fiscal decentralization on government quality is reduced by electoral and decision-making decentralization in poor and medium income countries whereas these forms of decentralization seem to improve the impact of fiscal decentralization on government quality in rich countries.Quality of government, fiscal decentralization, political decentralization, panel data

On the regional impact of public capital formation in spain

The objective of this paper is to investigate, in a methodologically consistent manner, the regional effects of public capital formation and the possible existence of regional spillover effects in Spain. The empirical results are based on VAR estimates at both the aggregate and regional levels using output, employment, and private capital, as well as different measures of public capital. Empirical results suggest that public capital affects output positively at the aggregate level as well as in all but one region. For most regions, the effects of public capital installed in the region itself are important but the spillover effects induced from public capital installed elsewhere are also very important. In fact, the spillover effects account for over half of the total effects of public capital formation in Spain. Furthermore, these spillover effects have a clear geographical pattern in that they tend to be more important in the peripheral regions of the country. We also find that relative to their share of the Spanish output, the biggest beneficiaries of public capital formation are the largest regions in the country. This suggests that public capital formation has contributed to concentration of output in these regions. Finally, in terms of the effects of public capital formation on the private inputs we find that both private capital and employment are affected positively at the aggregate level as well as for most of the regions. Nevertheless, the effects on private capital seem to be larger. Also, the spillover effects are very important for private capital but not for employment. This reflects a great degree of dynamism and mobility in the capital markets as opposed to the labor markets.public capital, regional effects, regional spillovers, Spain.

Spillover effects of public capital formation : evidence from the spanish regions

Maybe because of the inconclusive nature of the results on the impact of public capital on output at the regional level, the issue of the possible existence of the regional spillovers from public capital formation has received little attention. The objective of this paper is to provide evidence on the possible existence of such spillovers. We consider the case of Spain and its seventeen regions. Our methodological approach consists in estimating an aggregate VAR model for Spain as well as seventeen region-specific VAR models in which both capital installed in the region and capital installed outside the region are allowed to play a role in enhancing regional output. The estimation results can be summarized as follows. The aggregate effects of public capital formation in Spain are important. They cannot, however, be captured in their entirety by the direct effects in each region from public capital installed in the region itself. When for each region both the capital installed in the region and the capital installed outside the region are considered the total disaggregated effect from the seventeen regional models are very much in line with the aggregate results. Furthermore, the aggregate effect seems to be due in almost equal parts to the direct and spillover effects of public capital formation. Ultimately, this paper establishes the relevance of both capital installed in each region and spillover effects in the understanding of the regional decomposition of the aggregate effects of public capital formation. In doing so it opens the door to some tantalizing and potentially highly charged research issues in terms of the determination of the optimal location of public investment projects.public capital, regional spillovers

Integrated dynamic and thermography investigation of Mallorca cathedral

An integrated investigation of engineering archaeometry was carried out using dynamic identification, dynamic monitoring and Infra-Red (IR) thermography for the study of the dynamic behavior of Mallorca cathedral in Spain. The cathedral is a large historical masonry structure built during 14-16th c. Dynamic identification and monitoring allowed the capturing of eight natural frequencies of the cathedral. IR thermography was used as a complementary inspection technique in the context of a continuous monitoring. Usually, IR thermography is used punctually for the inspection of a part of an inspected structure. Here an alternative was tried as the IR camera was installed for two two-weeks periods in the winter and in the summer of 2011 to monitor the stone surface temperature of a large portion of the cathedral. The correlation between the cathedral natural frequencies and the stone surface temperature of some selected structural elements was investigated and compared with the correlation with the external and the internal temperatures. It was found that the correlation with stone surface temperature was lower than that with external temperature. The study allowed a better understanding of the influence of temperature changes on the structure’s dynamic behavior.Peer ReviewedPostprint (published version

Geology of the Eastern Prebetic Zone at the Jumilla region (SE Iberia)

This article presents a geological map and cross-sections at 1:50,000 scale covering an area of 609 km2 of the Eastern Prebetic Zone (SE Iberia). The structure of the studied area is characterized by an NW-directed fold-and-thrust belt and inactive salt diapirs that are parallel to the ENE- to NE-regional trend of the eastern Betic Cordillera. This regional trend is locally disrupted by the NW-trending Matamoros Basin, which is flanked by the active Jumilla and La Rosa diapirs. The geological map, the cross-sections and the outcrop observations support the hypothesis that the major Mesozoic rifting phase affecting the Eastern Prebetic Zone occurred during the Upper Jurassic to Santonian times coeval to the development of extensional basins in the Western Tethyan area. The proximal part of this passive margin was subsequently incorporated into the external part of the Betic thin-skinned fold-and-thrust belt. The Upper Cretaceous to Cenozoic tectonic evolution of the study area encompassed the following stages: a Campanian to Aquitanian NW-directed contraction; a Burdigalian to upper Miocene extensional reactivation of the main subsalt faults; and a Serravallian NWdirected contractional reactivation. In this scenario, the combined effect of the previous contractional reactivation of pre-existing salt structures together with the Miocene subsalt extension triggered passive salt extrusion of the La Rosa and Jumilla diapirs

Decentralization and Governance in Europe: Evidence from Different Expenditure Components

In this article, we consider the impact of fiscal decentralization on government quality by way of disaggregated measures of the former. Specifically, we break down fiscal decentralization into sub-central expenditure on public procurement and compensation of public sector employees. We find that decentralizing public procurement is bad for government performance while the decentralization of public sector wages improves governance. We relate the negative effect to the rent-seeking activity of interest groups and the positive effect to the informational advantage of sub-central provision. Moreover, we explore the impact of the Great Recession on our results and find that it is associated with stronger negative and positive effects of decentralization on governance, something which is consistent with the observed increased in the degree of decentralization since 2007

Producción, empleo y eficiencia productiva de la empresa española : una radiografía a partir de SABI

En este artículo se analiza la productividad de las empresas españolas, utilizando la información estadística empresarial contenida en el Sistema de Análisis de Balances Españoles (SABE ). Se demuestra la validez de SABE para el estudio de las empresas españolas de más de 9 trabajadores y se analiza el comportamiento diferencial de la productividad de estas empresas teniendo en cuenta el tamaño, el sector de actividad y su vocación exportadora. Los resultados confirman la mayor productividad de la mediana empresa y del sector industrial y, se muestra que la actividad exportadora de las empresas está claramente correlacionada con mayores niveles de productividad

Producción, empleo y eficiencia productiva de la empresa española

En este artículo se analiza la productividad de las empresas españolas, utilizando la información estadística empresarial contenida en el Sistema de Análisis de Balances Españoles (SABE). Se demuestra la validez de SABE para el estudio de las empresas españolas de más de 9 trabajadores y se analiza el comportamiento diferencial de la productividad de estas empresas teniendo en cuenta el tamaño, el sector de actividad y su vocación exportadora. Los resultados confirman la mayor productividad de la mediana empresa y del sector industrial y, se muestra que la actividad exportadora de las empresas está claramente correlacionada con mayores niveles de productividad.Productividad, PYMES, Exportación, España.