WHO IS PAYING FOR REGIONAL BALANCE IN IRELAND? ESRI Research Bulletin 2009/1/3

Morgenroth, Edgar (2009) WHO IS PAYING FOR REGIONAL BALANCE IN IRELAND? ESRI Research Bulletin 2009/1/3. UNSPECIFIED.

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Abstract

During good times and bad times, there has been ongoing debate about the extent of regional disparities in income and appropriate policy responses. In a recently published paper Edgar Morgenroth analysed the extent to which resources are redistributed across regions in Ireland through taxes and public expenditure and how this has affected regional disparities. Morgenroth’s analysis shows that the operation of the fiscal system reduces income disparities across counties. The gap between the counties with the highest and lowest incomes before taxes and subsidies is significantly reduced once subsidies and taxes are taken into account. The difference between the ‘poorest’ and ‘richest’ counties increased over the period 1995 to 2002, suggesting that there was income divergence during the ‘Celtic Tiger’ era.

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