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The territorial fiscal gap in Colombia
Author(s) -
BonetMorón Jaime,
AyalaGarcía Jhorland
Publication year - 2020
Publication title -
regional science policy and practice
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.342
H-Index - 8
ISSN - 1757-7802
DOI - 10.1111/rsp3.12225
Subject(s) - per capita , fiscal capacity , economics , fiscal year , fiscal policy , estimation , data envelopment analysis , fiscal union , fiscal imbalance , geography , macroeconomics , finance , population , demography , statistics , management , archaeology , sociology , mathematics
This paper presents an estimation of expenditure needs and fiscal capacity of Colombia's municipalities and departments in 2014. We use standard per capita norms to estimate the spending needs and data envelopment analysis for the local fiscal capacity. The results show that: (i) there are high horizontal fiscal disparities in Colombia, with greater incidence in municipalities than in departments; (ii) these disparities favour more developed territories; and (iii) there is evidence of a centre‐periphery pattern in the horizontal fiscal disparities, causing central regions of the country to have a lower imbalance between expenditure needs and fiscal capacity.