Growth incentives and devolved fiscal systems

Katerina Lisenkova, Alastair Greig, Peter G. McGregor, Graeme Roy, J. K. Swales

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1 Citation (Scopus)
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Abstract

This paper explores the characteristics of a range of stylized devolved fiscal systems that have been applied, or proposed, as a means of funding the devolved Scottish government. The central aim is to identify those schemes that most effectively provide incentives for the pursuit of growth-promoting policies by the regional government. Using simulations with an intertemporal, computable general equilibrium model for Scotland, it did not prove possible to uniquely rank a range of devolved fiscal systems in terms of the extent of growth incentive they provide. Moreover, rather counterintuitively, tax-sharing regimes do not necessarily improve growth incentives relative to more basic block grants.

Original languageEnglish
Pages (from-to)1744-1756
Number of pages13
JournalRegional Studies
Volume56
Issue number10
Early online date23 Dec 2021
DOIs
Publication statusPublished - 3 Oct 2022

Keywords

  • regional fiscal autonomy
  • regional fiscal systems
  • applied general equilibrium
  • growth incentives

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