지방재정지출승수와 지방세출구조조정에 관한 함의

Abstract

The objective of this paper is to investigate the economic effect of the local fiscal expenditure restructuring caused by the rapid expansion of social welfare spending. We estimate the fiscal multipliers to figure out the economic effects of each local spending category under the consideration of the difference in local fiscal dependency may result in the difference in the magnitude of fiscal multiplier. We find that there exist a close relationship among local social-economic conditions, local fiscal dependencies, and the performance of fiscal restructuring. In specific, it is shown that the sparsely populated localities with high fiscal dependencies generally have room for additional fiscal restructuring toward social welfare expenditure and the effect of the increase in social welfare spending on economic performance is not so negative. On the other hand, the densely populated cities with lower fiscal dependencies generally do not have enough room for additional social welfare expenditure and the increase in social welfare spending affects negatively to the economic performances. These result implies that the allocation of fiscal resources should be reformed toward the equalization among of income classes instead of emphasizing spatial equalization.