A Scandinavian "high-tax, high-spend" model for regions? The impact of enhanced fiscal autonomy

Tobias Emonts-Holley, Alastair Greig, Patrizio Lecca, Katerina Lisenkova, Peter McGregor, J. Kim Swales

Research output: Contribution to journal › Article

Abstract

The fiscal powers of the Scottish Government have increased significantly, resulting in the first (modest) regional differences in income tax rates within the UK. In fact, the current degree of fiscal autonomy would permit a radical shift towards a high-tax, high-spend “Scandinavian model”. We find that the impact of such a change on the Scottish economy is likely to be positive only if the public value the increased public spending and are willing, and able, to accept a corresponding reduction in their take home pay. We conclude that the current bargaining system is unlikely to deliver such an outcome.
LanguageEnglish
Number of pages26
JournalSpatial Economic Analysis
Publication statusAccepted/In press - 14 Dec 2018

Fingerprint

public spending
bargaining
difference in income
income tax
Tax
regional difference
autonomy
taxes
economy
Bargaining
Values
Likely
Model
tax
rate
public
Autonomy
Fiscal
Government
Tax rate

Keywords

  • regional fiscal autonomy
  • income tax

Cite this

Emonts-Holley, Tobias ; Greig, Alastair ; Lecca, Patrizio ; Lisenkova, Katerina ; McGregor, Peter ; Swales, J. Kim. / A Scandinavian "high-tax, high-spend" model for regions? The impact of enhanced fiscal autonomy. In: Spatial Economic Analysis. 2018.
@article{e3a61b8bda8844d5ac91e37fcb77df56,
title = "A Scandinavian {"}high-tax, high-spend{"} model for regions? The impact of enhanced fiscal autonomy",
abstract = "The fiscal powers of the Scottish Government have increased significantly, resulting in the first (modest) regional differences in income tax rates within the UK. In fact, the current degree of fiscal autonomy would permit a radical shift towards a high-tax, high-spend “Scandinavian model”. We find that the impact of such a change on the Scottish economy is likely to be positive only if the public value the increased public spending and are willing, and able, to accept a corresponding reduction in their take home pay. We conclude that the current bargaining system is unlikely to deliver such an outcome.",
keywords = "regional fiscal autonomy, income tax",
author = "Tobias Emonts-Holley and Alastair Greig and Patrizio Lecca and Katerina Lisenkova and Peter McGregor and Swales, {J. Kim}",
year = "2018",
month = "12",
day = "14",
language = "English",
journal = "Spatial Economic Analysis",
issn = "1742-1772",

}

Emonts-Holley, T, Greig, A, Lecca, P, Lisenkova, K, McGregor, P & Swales, JK 2018, 'A Scandinavian "high-tax, high-spend" model for regions? The impact of enhanced fiscal autonomy' Spatial Economic Analysis.

A Scandinavian "high-tax, high-spend" model for regions? The impact of enhanced fiscal autonomy. / Emonts-Holley, Tobias; Greig, Alastair; Lecca, Patrizio; Lisenkova, Katerina; McGregor, Peter; Swales, J. Kim.

In: Spatial Economic Analysis, 14.12.2018.

Research output: Contribution to journal › Article

TY - JOUR

T1 - A Scandinavian "high-tax, high-spend" model for regions? The impact of enhanced fiscal autonomy

AU - Emonts-Holley, Tobias

AU - Greig, Alastair

AU - Lecca, Patrizio

AU - Lisenkova, Katerina

AU - McGregor, Peter

AU - Swales, J. Kim

PY - 2018/12/14

Y1 - 2018/12/14

N2 - The fiscal powers of the Scottish Government have increased significantly, resulting in the first (modest) regional differences in income tax rates within the UK. In fact, the current degree of fiscal autonomy would permit a radical shift towards a high-tax, high-spend “Scandinavian model”. We find that the impact of such a change on the Scottish economy is likely to be positive only if the public value the increased public spending and are willing, and able, to accept a corresponding reduction in their take home pay. We conclude that the current bargaining system is unlikely to deliver such an outcome.

AB - The fiscal powers of the Scottish Government have increased significantly, resulting in the first (modest) regional differences in income tax rates within the UK. In fact, the current degree of fiscal autonomy would permit a radical shift towards a high-tax, high-spend “Scandinavian model”. We find that the impact of such a change on the Scottish economy is likely to be positive only if the public value the increased public spending and are willing, and able, to accept a corresponding reduction in their take home pay. We conclude that the current bargaining system is unlikely to deliver such an outcome.

KW - regional fiscal autonomy

KW - income tax

UR - https://www.tandfonline.com/loi/rsea20

M3 - Article

JO - Spatial Economic Analysis

T2 - Spatial Economic Analysis

JF - Spatial Economic Analysis

SN - 1742-1772

ER -

Emonts-Holley T, Greig A, Lecca P, Lisenkova K, McGregor P, Swales JK. A Scandinavian "high-tax, high-spend" model for regions? The impact of enhanced fiscal autonomy. Spatial Economic Analysis. 2018 Dec 14.

Access to Document

Related content

Projects

The Constitutional Future of Scotland and the United Kingdom

Project: Research