Are Interjurisdictional tax and spending arrangements and subnational finances in argentina pro-growth

Roma

Workshop; 18 Banca d´Italia Workshop on Public Finance; 2016

Banca d´Italia

A panel data model including provinces? fiscal information for the period 2003 ? 2014 was resorted to in order to ascertain whether the crowding- out of fiscal resources between the central government and the provincial governments was occurring and to verify if the latter?s fiscal incentives and pattern of public expenditures were coherent and consistent with pro-growth and business creation at the subnational level. For that, GLS panel data estimations were carried out of equations respectively including provinces? own tax revenues and business creation as dependent variables and national transfers, incentives proxy, provincial public spending per category and population as explanatory variables.