Measuring fiscal decentralization fund international monetary. On the Measurement and Impact of Fiscal Decentralization: Policy Research Working Papers 2019-02-15

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The (Mis

measuring fiscal decentralization fund international monetary

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.

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Decentralization: Conceptualization and measurement

measuring fiscal decentralization fund international monetary

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.

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The (Mis

measuring fiscal decentralization fund international monetary

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 art铆culo eval煤a cuantitativamente la relaci贸n de la capacidad fiscal con el desarrollo econ贸mico de las ciudades.

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Fiscal Decentralization Indicators

measuring fiscal decentralization fund international monetary

This paper鈥攁 product of the Economic Policy and Poverty Reduction Division, World Bank Institute鈥攊s 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.

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Measuring Fiscal Decentralization : Exploring the IMF鈥檚 Databases

measuring fiscal decentralization fund international monetary

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 煤ltimo, a trav茅s de los a帽os, el crecimiento municipal muestra una convergencia beta absoluta incondicional en la disminuci贸n de la diferencia de crecimiento entre los municipios ricos y pobres. El cap铆tulo pone a prueba la hip贸tesis de que, si un municipio cuenta con una mayor autonom铆a fiscal al recolectar sus propios ingresos, as铆 como criterio para tomar sus propias decisiones, entonces la ciudad ser谩 m谩s propensa a tener un desarrollo econ贸mico 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.

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Measuring Fiscal Decentralization : Exploring the IMF's Databases : IMF Working Papers: Measuring Fiscal Decentralization

measuring fiscal decentralization fund international monetary

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鈥攁 public good with relatively few spillovers鈥攄oes 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.

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Phebby Kufa

measuring fiscal decentralization fund international monetary

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.

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Measuring Fiscal Decentralization : Exploring the IMF's Databases : IMF Working Papers: Measuring Fiscal Decentralization

measuring fiscal decentralization fund international monetary

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.

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