Pedro Pascual

Fiscal decentralization and regional disparities: evidence from several European Union countries

This paper investigates for the first time the relationship between fiscal decentralization and regional disparities in a set of European Union countries. Our findings reveal that the devolution of fiscal power to subnational governments is negatively correlated with the level of regional inequality within the sample countries. Therefore, the processes of fiscal decentralization may contribute to a more balanced distribution of resources across space, making up for the central governments loss of redistributive power. In fact, this result is robust to the inclusion of additional explanatory variables in the analysis, and to the choice of the measure used to quantify the degree of dispersion in the spatial distribution of per capita income.

The Dynamics of Regional Disparities in Central and Eastern Europe during Transition

Abstract This paper examines the evolution of territorial imbalances in per capita income in the Central and Eastern Europe regions between 1990 and 2001. In order to overcome the limitations of conventional convergence analysis, we have combined a non-parametric approach that allows us to study the dynamics of the entire cross-section distribution, with a series of theoretical results and measures taken from the literature on personal income distribution. The results obtained show an overall reduction in regional inequality over the study period. This process has been compatible with the simultaneous presence of between-country convergence and within-country divergence. Likewise, we have observed a reduction in the development gap between the sample regions and Western Europe. In any event, the polarization of the distribution under consideration has decreased, while the registered level of intra-distribution mobility is relatively low. Furthermore, the analysis highlights the important role played in explaining the distribution dynamics by factors such as the national component, spatial location, productive structure, agglomeration economies and the percentage of gross domestic product devoted to investment.

Regional inequality in the European Union: Does industry mix matter?

Ezcurra R., Gil C., Pascual P. and Rapún M. (2005) Regional inequality in the European Union: does industry mix matter?, Regional Studies 39 , 679–697. The aim of this paper is to test for the respective roles of regional and sectoral factors in productivity convergence in the European Union between 1977 and 1999. The methodology used for this is a new one that combines an alternative version of shift–share analysis with various results quoted in the literature on personal income distribution. The empirical evidence suggests that regional disparity in productivity in the European Union is closely related to intrinsic differences between regions. Whatever the case, the results that emerge also reveal the fundamental role of the country effect in accounting for regional disparities in income per worker in Europe. In addition our empirical results support the relevance of one‐sector growth models to explicate per‐capita income disparities in the European regions.

Inequality, Polarisation and Regional Mobility in the European Union

This paper examines the distribution dynamics of regional per capita income in the European Union between 1977 and 1999. To achieve this aim, a non-parametric approach is combined with the information provided by various measures used in the literature on personal income distribution. The results obtained suggest that regional inequality and polarisation have decreased in the European context over the period considered. Likewise, the observed level of intradistributional mobility is relatively low. Furthermore, the findings reveal the important role played by the national component and the spatial dimension in the distribution dynamics.

Spatial Inequality in Productivity in the European Union: Sectoral and Regional Factors

To gain a deeper insight into territorial imbalances existing in the European Union, the authors analyzedthe evolution of regional disparitiesin productivity between 1977 and 1999. The results obtained reveal an overall decrease in regional inequality in productivity throughout the study period, even though the density functions estimated suggest the existence of some degree of polarization in the regional distribution of output per worker. The article also examines the role played by sectoral and regional factorsin productivity convergence, using a combination of shift-share analysis and various theoretical results obtained in the literature on personal income distribution. The analysis shows that regional inequality in output per worker in the European Unionis closelylinkedtointrinsic dif ferences between regions. Likewise,the empirical evidence highlights the importance of the national component and spatial location in accounting for observed dif ferences in sectoral productivity across the European regions. Finally, the findings supportthe relevance of one-sector growth modelsto explain per capitaincome disparitiesinthe European context.

Is there convergence in income inequality levels among the European regions

The regional distribution of income inequality in the European Union between 1993 and 1998 is examined. The results obtained reveal the existence of a process of convergence in regional inequality levels over the period analysed. This was due basically to the reduction in income dispersion that took place in regions registering relatively high levels of inequality in 1993. Polarization in the distribution under study is also found to decrease, irrespective of the number of groups considered. Nevertheless, since the observed level of intradistributional mobility is low, the European regions tend, over time, to maintain their relative positions in terms of inequality. Finally, the analysis carried out highlights the relevance of the national component in explaining the dynamics of regional inequality distribution.

Regional welfare disparities: the case of the European Union

The regional welfare distribution in the European Union between 1993 and 1998 is examined, using several complementary methodologies. The results obtained show a reduction in regional welfare disparities over the period analysed. It is worth noting, in this respect, however, that regional productivity differences prove to be the main determinant behind observed welfare inequality in the European context. Moreover, there has also been a decline in regional bipolarization over the six-year contemplated, while the degree of observed intradistributional mobility is relatively low. The empirical evidence presented, nevertheless, reveals the importance of variables such as the national component, the spatial location, the regional productive structure or the percentage of GDP devoted to investment or to R&D expenditure, in accounting for the dynamics of the distribution under analysis.

Spatial disparities in the European agriculture: a regional analysis

This article examines the territorial imbalances in European agriculture during the period 1980 to 2001, by means of the information provided by various methodological instruments which allow us to overcome the drawbacks of conventional convergence analysis. The results obtained reveal that the regional distribution of productivity in the agricultural sector is characterized by the presence of positive spatial dependence. This fact implies that the European regions in close spatial proximity register similar levels of the variable under study, which highlights the relevance of geographical location in this context. The empirical evidence presented also shows that regional disparities have remained almost constant during the time interval considered. However, the increase in density around the European average explains the observed reduction in the degree of bipolarization, while intra-distribution mobility is relatively limited. Finally, the analysis carried out allows us to assess the role of variables such as country of origin, investment per worker in the agricultural sector, regional per capita income or the size of the agrifood industry, in explaining the dynamics of the distribution under analysis.

Spatial Disparities in Productivity in Central and Eastern Europe

This paper examines the evolution of territorial imbalances in productivity in thirty-nine Central and East European regions between 1992 and 2001. The results obtained show an overall reduction in regional inequality over the study period, though they also indicate simultaneous between-country convergence and within-country divergence. The polarization of the distribution under consideration is seen to decrease, while the registered level of intradistribution mobility is relatively low. The analysis also indicates that regional disparities in output per worker in Central and Eastern Europe are closely linked to intrinsic differences among regions. Finally, we investigate the role played in explaining observed dispersion in sectoral productivity levels by the national-level factors, spatial location, agglomeration economies, and geographical distance from the economic core of the European Union.

Cross-country disparities in health-care expenditure: a factor decomposition

This note investigates the sources of international differences in the levels of per capita health-care expenditure, using data on the OECD countries between 1975 and 2003. To that end, we use Theils second measure of inequality for decomposing cross-country disparities in per capita health-care expenditure into the contributions of various factors: health-care expenditure expressed as a share of GDP, labour productivity, employment rate, activity rate and the ratio of working-age population to total population. Our results show that cross-country differences in the share of GDP devoted to health-care expenditure and labour productivity are the main determinants of the level of dispersion in per capita health-care expenditure. On the contrary, existing disparities in the remaining explanatory factors considered play a less relevant role in this context. In any event, the analysis performed reveals that the overall inequality in per capita health-care expenditure decreased throughout the study period. This was due to the process of international convergence observed in most of the factors used to break down the level of per capita health-care expenditure.