Archivi tag: Income Inequality

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On March 12, the ECB held a press conference, in which Christine Lagarde announced and commented on the new measures to counter the economic downturn triggered by the spread of the virus. Below, we shortly review and explain these measures, compare the policies of Lagarde and Draghi, the previous ECB president, and give some final considerations on [Read More]

 

Introduction

 

The aim of this article is to consider the question of the relationship between a political and administrative structure, federalism, and an outcome that is widely regarded as economic, income inequality. While not giving any definitive answer, I will try to provide an overview of some of the relevant literature on this issue. As such, I will begin by briefly explaining what we mean by federalism and why some countries would rather give more autonomy to their political subnational structures; then I will pose the question whether federalism is inherently skewed – that is, whether there is any bias towards conservatism. Following Erik Wibbels’s work, I will also focus on the distinction between fiscal and political federalism. Only then will I face the core problem of this relationship, the redistribution of income among the polity, or the regions. The use of some examples of economic and fiscal management in federal systems will help to understand how federalism can have deeply different outcomes in different countries.

 

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