The problem of income disparities in developing countries is constantly gaining in importance. Clearly a pure growth strategy alone cannot be effective and disparities are steadily increasing. What is needed for an effective policy first of all are adequate statistics and indicators.

Finding a definitive answer to the question of whether fiscal redistribution is harmful or beneficial for regional economic performance is not straightforward. This paper disentangles the key components of fiscal redistribution in a regional Canada-US setting. Redistributive spending is...