In this paper we use an overlapping generations model with heterogeneous agents and an educationrelated public good, in order to analyze the relationship between fiscal federalism, human capital accumulation, and inequality in the distribution of human capital and income among individuals and regions. We show that the more dispersed the distribution of income within a region, the more the region benefits from a decentralized provision of the education-related public good, in terms of higher accumulation of human capital. Nevertheless we show that, with decentralization, there exists a trade-off between accumulation of human capital and equality in the distribution of income among citizens within a region: a region that accumulates more (less) human capital with decentralization, exhibits also higher (lower) interpersonal inequality among its citizens. Results show also that federalism may reduce regional disparities.

Cerniglia, F., & Longaretti, R. (2013). Federalism, Human Capital Accumulation and Inequality. ECONOMIA POLITICA, 30(2), 151-180 [10.1428/74237].

Federalism, Human Capital Accumulation and Inequality

CERNIGLIA, FLORIANA MARGHERITA;LONGARETTI, RICCARDA ARIANNA
2013

Abstract

In this paper we use an overlapping generations model with heterogeneous agents and an educationrelated public good, in order to analyze the relationship between fiscal federalism, human capital accumulation, and inequality in the distribution of human capital and income among individuals and regions. We show that the more dispersed the distribution of income within a region, the more the region benefits from a decentralized provision of the education-related public good, in terms of higher accumulation of human capital. Nevertheless we show that, with decentralization, there exists a trade-off between accumulation of human capital and equality in the distribution of income among citizens within a region: a region that accumulates more (less) human capital with decentralization, exhibits also higher (lower) interpersonal inequality among its citizens. Results show also that federalism may reduce regional disparities.
Articolo in rivista - Articolo scientifico
Scientifica
Federalism, Inequality, Human Capital, Heterogeneous Agents
English
Cerniglia, F., & Longaretti, R. (2013). Federalism, Human Capital Accumulation and Inequality. ECONOMIA POLITICA, 30(2), 151-180 [10.1428/74237].
Cerniglia, F; Longaretti, R
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/10281/48899
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