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Income inequality, decentralisation, and regional development in Western Europe

Tselios, Vassilis, Rodríguez-Pose, Andres, Pike, Andy, Tomaney, John and Torrisi, Gianpiero (2012) Income inequality, decentralisation, and regional development in Western Europe. Environment and Planning A, 44 (6). pp. 1278-1301. ISSN 0308-518X

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Abstract

This paper deals with the relationship between decentralisation, regional economic development, and income inequality within regions. Using multiplicative interaction models and regionally aggregated microeconomic data for more than 100 000 individuals in the European Union (EU), it addresses two main questions. First, whether fiscal and political decentralisation in Western Europe has an effect on within-regional interpersonal inequality. Second, whether this potential relationship is mediated by the level of economic development of the region. The results of the analysis show that greater fiscal decentralisation is associated with lower interpersonal income inequality, but, as regional income rises, further decentralisation is connected to a lower decrease in inequality. This finding is robust to the measurement and definition of income inequality, as well as to the weighting of the spatial units by their population size.

Item Type: Article
Official URL: http://www.envplan.com/A.html
Additional Information: © 2012 Pion
Library of Congress subject classification: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HF Commerce
J Political Science > JN Political institutions (Europe)
Sets: Departments > Geography and Environment
Research centres and groups > Spatial Economics Research Centre
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Date Deposited: 14 Aug 2012 10:32
URL: http://eprints.lse.ac.uk/45336/

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