Smoke, Paul with Loffler, Gundula, Bosi, Giuliano. The breakdown by economic type distinguishes between current and capital expenditures but excludes interest payments. Federalism proved fundamental to the impressive economic rise of England in the 18th century and the United States in the 19th and early 20th centuries. This paper explores the role of decentralization in explaining variation in fuel subsidies across countries. In future work, these scores can be used for hypothesis testing about the causes and effects of decentralization on important social outcomes.
There is no one, best solution, but there are certain rules and working mechanisms worldwide. Chapter V addresses the topics of subnational borrowing and emergency fiscal controls. The data show that in many countries, revenue collection remains relatively more centralized than expenditures and that employment tends to be concentrated in lower levels of government. However, decentralization is surprisingly difficult to measure. The findings suggest a weak negative economic effect of decentralization through a number of municipalities per capita. This study is consistent with the divergence hypothesis in opposite to convergence hypothesis of Oates 1972. Conventional wisdom postulates that there are benefits from decentralizing government finances but there is little empirical evidence about actual country practices.
The findings are shown by degree of economic development, constitutional power arrangements, and geographic area, broadly confirming key factors identified in the literature as determining the extent of fiscal decentralization. The Share of Central Government Is Broadly Stable Overtime: Four Country Examples; 9. The article also shows that federalism underpins the spectacular economic growth in China over the past 15 years. After providing that theory with its needed logically-complete optimal conditions, I went on to demonstrate the fatal inability of any decentralized market or voting mechanism to attain or compute this optimum. Included are the types of indicators included as well as some guidance on how to use and how not to use the indicators as well as where to find the information. Utilizando un conjunto de datos de 1989-2014, este artículo evalúa cuantitativamente la relación de la capacidad fiscal con el desarrollo económico de las ciudades.
This paper—a product of the Economic Policy and Poverty Reduction Division, World Bank Institute—is part of a larger effort in the institute to serve as a knowledge center and as a partner to achieve poverty reduction in developing and transition countries. Though the distribution of tax income is an important yardstick for de facto decentraliza- tion, one should not neglect another important aspect of budgetary policies, the distribution of state expenditures. For instance, only 46 countries reported expenditures at both the national and subnational level in 1996: Central and Local 32 Central and Provincial 2 Central, Provincial and Local 12 Total 46 This limited coverage reflects a lack of reported data rather than few countries with local and provincial governments. By generating income flow and expenditure through subsidiarity, local government affects on both public spending and taxes. The findings are shown by degree of economic development, constitutional power arrangements, and geographic area, broadly confirming key factors identified in the literature as determining the extent of fiscal decentralization.
However, the complexity of the process of fiscal decen- tralization is much more complicated when we consider revenue. The responsiveness of local governments would then be conditional upon adequate local revenues and responsible administration, which can both be lacking in developing countries. However, the findings do not show any significant impact from the creation of new provinces by separation from the existing ones. Fiscal Federalism and Decentralization: A Review of Some Efficiency and Macroeconomic Aspects. Por último, a través de los años, el crecimiento municipal muestra una convergencia beta absoluta incondicional en la disminución de la diferencia de crecimiento entre los municipios ricos y pobres. El capítulo pone a prueba la hipótesis de que, si un municipio cuenta con una mayor autonomía fiscal al recolectar sus propios ingresos, así como criterio para tomar sus propias decisiones, entonces la ciudad será más propensa a tener un desarrollo económico exitoso. These problems include the recent history of disintegration of the Soviet Union; the war in Chechnya; the ethno-linguistic, religious and historical differences across its vast territory; great variations in the endowment of mineral resources; increasingly large economic and fiscal disparities across regions and local governments; and the spreading sentiment in some regions that they can be better off by seceding from the Federation.
New York: Harcourt Brace Jovanovich. Decomposing output growth into labour productivity and employment growth, we show that the ultimate effect of fiscal decentralization on growth depends on which factor prevails, thus rendering the direct estimation of tax decentralization on growth ambiguous. Fiscal decentralisation and economic growth: Is there really a link? By contrast, drinking water quality—a public good with relatively few spillovers—does not vary with the number of governments. These data have some obvious limitations. The paper also shows that the variables included in the regression are helpful in the prediction of changes in the level of centralization. It explores from an analytical perspective the most important of the issues related to the pricing of urban services: the difficult question of reconciling the needs to cover costs and to provide an efficient level of services.
In this respect, the report reviews the spread of decentralization as a potentially fortuitous phenomenon. Xie, Danyang, Zou, Heng-fu, Davoodi, Hamid. Other studies in this strain increased the number of significant variables related to decentralization to include taste differen- tiation and level of democracy Panizza 1999 as well as federal or unitary constitu- tion Dziobek et al. The overall measure of fiscal decentralization is found positively associated with the state income. Since literature does not provide unanimous indication about the effect of different component of expenditure on growth, we consider a generalized additive model, which is a semi-parametric estimation method that allows more flexibility than conventional estimation techniques. A more serious problem is that even when countries report fiscal data, they do not always report data for all government tiers and the data thus present an incomplete picture of the sub-national government sector in those countries.
The functional breakdown of expenditures is a useful tool in analyzing sectoral aspects of decentralization. The structure of local government in a national setting is considered. The article offers an empirical test of that definition using factor analysis of data from 1996 for sixty-eight countries. As acknowledged by many scholars see Ebel and Yilmaz, 2002 andStegarescu, 2005 , this index of decentralization does not perfectly reflect such complexity, given that decentralization is a complex and 22 multifaceted concept that spans fiscal, political, and administrative dimensions. As acknowledged by many scholars see Ebel andYilmaz, 2002 andStegarescu, 2005 , this index of decentralization does not perfectly reflect such complexity, given that decentralization is a complex and 22 multifaceted concept that spans fiscal, political, and administrative dimensions.