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A rigorous understanding of the developmental effect of fiscal transfers to subnational governments remains an important policy research issue globally. This paper exploits a novel dataset of 20 years of municipal poverty maps and local public finances to study the effects on local welfare of a...
Persistent link: https://www.econbiz.de/10012202072
This paper explores the relationship between fiscal decentralization, which gave greater rural industrialization and … China's initial reform period. A Heckman model is employed to correct for the zero observation problems and to consistently … estimate the labor mobility with a modified gravity equation. Given the institutional barriers, the fiscal decentralization has …
Persistent link: https://www.econbiz.de/10010516465
We investigate the effects of the Indonesian decentralization and democratization process on budget allocation at the … infrastructure. We find that after the dramatic expenditure decentralization of 2001, districts with relatively lower levels of … and administrative decentralization, we find no consistent effects of the democratization process on local public …
Persistent link: https://www.econbiz.de/10010230500
Changes in political boundaries aimed at devolving power to local governments are common in many countries. We examine the economic consequences of redistricting through the creation of smaller government units. Exploiting reforms that led to sharp variations in the number of government units in...
Persistent link: https://www.econbiz.de/10014463692
legislative term limits lead to more fiscal decentralization. -- term limits ; pork-barrel spending ; rent …
Persistent link: https://www.econbiz.de/10009534888
Governments do not have perfect information regarding the priorities and the needs of different groups in the economy. This lack of knowledge opens the door for different groups to lobby the government in order to receive the government's support. We set up a model of hierarchical contests and...
Persistent link: https://www.econbiz.de/10011412469
Consider a union of atomistic member states, each faced with idiosyncratic business-cycle shocks. Private cross-border risk-sharing is limited, giving a role to a federal unemployment-based transfer scheme. Member states control local labor-market policies, giving rise to a trade-off between...
Persistent link: https://www.econbiz.de/10012316758
composition. Only when the differences are sufficiently large does full decentralization become the optimal regime. National … steady state output is instead highest when the economy is decentralized. This result is consistent with the "Oates … conjecture" that fiscal decentralization increases capital accumulation. However, in terms of welfare this result can be reversed …
Persistent link: https://www.econbiz.de/10003451831
exists a tendency towards decentralization in many developed and developing countries. Using micro data from the Programme … political decentralization on student performance in the areas of mathematics, reading skills and science. We observe that … fiscal decentralization exerts an unequivocal positive effect on students' outcomes in all areas, while the effect of …
Persistent link: https://www.econbiz.de/10009569606
Does fiscal decentralization in a politically decentralized less developed country help strengthen democratic … institutions at the grass root level? And is the impact of such decentralization on local politics important in determining local … development? Our study on Indonesia suggests that fiscal decentralization enhanced free and fair local elections, though the …
Persistent link: https://www.econbiz.de/10009155571