Constitutional change and inequality in Scotland

Citation

Comerford D & Eiser D (2014) Constitutional change and inequality in Scotland. Oxford Review of Economic Policy, 30 (2), pp. 346-373. https://doi.org/10.1093/oxrep/gru014

Abstract
What scope does a sub-national economy have to affect the level of inequality? Does a policy menu consistent with the theories of fiscal federalism provide for an ability to affect inequality measures, or does this ability require the powers of a nation state? In this paper we discuss these questions in the context of the debate around the Scottish independence referendum, in which inequality has played a prominent role, and ask whether independence, further devolution, or simply different policies under the current constitutional framework are capable of helping Scotland transition to a less unequal income distribution. We provide a series of estimates of the impact of different policy choices upon inequality in Scotland, and discuss inequality reduction in the context of different constitutional options.

Keywords
inequality; fiscal policy; fiscal federalism

Journal
Oxford Review of Economic Policy: Volume 30, Issue 2