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The Regional Dimension of Taxes and Public Expenditure in Ireland

Author

Listed:
  • Edgar Morgenroth

    (Economic and Social Research Institute (ESRI))

Abstract
In Ireland as in many other countries there has been an ongoing debate on the nature, degree and trends of regional imbalance, which has led to substantial research output. While much is now known about these trends, the degree to which they are ameliorated by existing public policies has not been systematically examined. This paper considers two aspects of public policy namely the fiscal system and public expenditure. In particular regional government accounts are constructed, which identify the level of taxation, subsidisation and public expenditure at the regional level. These are then used to identify the degree of regional re-distribution. That analysis confirms that the fiscal system does reduce relative income differences in Ireland. Dublin and the South-West contribute to a substantial resource transfer to other regions. In contrast to the findings for the UK, the level of transfers is found to be highly related to the state of development. In other words the fiscal system works in a progressive manner in relation to regional disparities. Nevertheless the better off regions receive an above average level of expenditure so that the system only partially equalises.

Suggested Citation

  • Edgar Morgenroth, 2007. "The Regional Dimension of Taxes and Public Expenditure in Ireland," Papers WP195, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esr:wpaper:wp195
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    File URL: https://www.esri.ie/pubs/WP195.pdf
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    References listed on IDEAS

    as
    1. Edgar Morgenroth, 2006. "Economic Integration and Structural Change: The Case of Irish Regions," Papers WP176, Economic and Social Research Institute (ESRI).
    2. Peter Gripaios & Paul Bishop, 2005. "Policy Debates Government Output and Expenditure in UK Regions and Sub-regions: An Analysis of the New Experimental Accounts Data," Regional Studies, Taylor & Francis Journals, vol. 39(6), pages 805-813.
    3. Michael Keane & Eoghan Garvey, 2006. "Measuring the employment effects of the rural renewal tax scheme," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 359-374.
    4. Lynn Killen & Frances Ruane, 1998. "The Regional Dimension of Industrial Policy and Performance in the Republic of Ireland," Economics Policy Papers 983, Trinity College Dublin, Department of Economics.
    5. Gabriel Rodríguez, 2006. "The role of the interprovincial transfers in the ß: Further empirical evidence for Canada," Journal of Economic Studies, Emerald Group Publishing, vol. 33(1), pages 12-29, January.
    6. Iain McLean & Alistair McMillan, 2003. "The Distribution of Public Expenditure across the UK Regions," Fiscal Studies, Institute for Fiscal Studies, vol. 24(1), pages 45-71, March.
    7. Salvador Barrios & Holger Görg & Eric Strobl, 2006. "Multinationals' Location Choice, Agglomeration Economies, and Public Incentives," International Regional Science Review, , vol. 29(1), pages 81-107, January.
    8. Aidan Meyler & Eric Strobl, 2000. "Job Generation and Regional Industrial Policy in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 31(2), pages 111-128.
    9. Morgenroth, Edgar, 2000. "Regionalisation and the Functions of Regional and Local Government," Papers BP2001/4, Economic and Social Research Institute (ESRI).
    10. David Heald & John Short, 2002. "The Regional Dimension of Public Expenditure in England," Regional Studies, Taylor & Francis Journals, vol. 36(7), pages 743-755.
    11. repec:esr:chaptr:jacb200011 is not listed on IDEAS
    12. Brian Nolan & Timothy M. Smeeding, 2005. "IRELAND's INCOME DISTRIBUTION IN COMPARATIVE PERSPECTIVE," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 537-560, December.
    13. Eoin O'Leary, 1999. "Regional Income Estimates for Ireland, 1995," Regional Studies, Taylor & Francis Journals, vol. 33(9), pages 805-814.
    14. Peter Gripaios, 2002. "Regional Spending: A Comment on MacKay," Regional Studies, Taylor & Francis Journals, vol. 36(6), pages 685-689.
    15. R. Ross Mackay, 2001. "Regional Taxing and Spending: The Search for Balance," Regional Studies, Taylor & Francis Journals, vol. 35(6), pages 563-575.
    16. Gerry Boyle & Tom McCarthy & Jim Walsh, 1999. "Regional Income Differentials and the Issue of Regional Equalisation in Ireland," Economics Department Working Paper Series n880499, Department of Economics, National University of Ireland - Maynooth.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Gianluca Orsatti & François Perruchas & Davide Consoli & Francesco Quatraro, 2020. "Public Procurement, Local Labor Markets and Green Technological Change. Evidence from US Commuting Zones," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 75(4), pages 711-739, April.
    2. Fusillo, Fabrizio & Orsatti, Gianluca & Scandura, Alessandra, 2024. "Public Green Demand and Green Innovation: Evidence from US Firms," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202407, University of Turin.
    3. Morgenroth, Edgar, 2018. "Prospects for Irish Regions and Counties: Scenarios and Implications," Research Series, Economic and Social Research Institute (ESRI), number RS70.
    4. Cathal O'Donoghue, 2014. "Chapter 01: Introduction," Chapters from Rural Economic Development in Ireland, in: Rural Economic Development in Ireland, edition 1, chapter 1, Rural Economy and Development Programme,Teagasc.
    5. John Fitzgerald & Edgar Morgenroth, 2019. "The Northern Ireland Economy: Problems and Prospects," Trinity Economics Papers tep0619, Trinity College Dublin, Department of Economics, revised Aug 2019.
    6. Emilio Calvo, 2021. "Redistribution of tax resources: a cooperative game theory approach," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 12(4), pages 633-686, December.
    7. Morgenroth, Edgar, 2014. "The Regional Development Impacts of Transport Infrastructure: A Literature Review and Policy Implications," Research Series, Economic and Social Research Institute (ESRI), number BKMNEXT278.

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    More about this item

    Keywords

    Regional disparities; government expenditure; taxes;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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