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Conventional approaches to fiscal decentralization suggest that decentralization lowers the power of redistribution, but recent theories argue that fiscal decentralization can work as a commitment device. The former effect is argued to cause an increase in inter-county inequality, while the...
Persistent link: https://www.econbiz.de/10010720157
presents two new composite measures. The new fiscal decentralization indicators are symmetric in terms of the relative effects …
Persistent link: https://www.econbiz.de/10011113338
The 1991 Local Government Code devolved substantial spending, taxing, and borrowing powers to local government units (LGUs). Moving governance closer to the people can generate a welfare gain, but local governments must have adequate revenues to finance local development. The paper examines the...
Persistent link: https://www.econbiz.de/10010562122
The main features of China’s current sub-national finance arrangements date back to the 1994 tax reform. China has a multi-level government structure that shares national tax revenues through a system of tax sharing and transfers, and divides spending assignments and responsibilities. Local...
Persistent link: https://www.econbiz.de/10011276970
fiscal illusion hypothesis. Empirical results indicate that the marginal effects of municipal own-source revenues on local …
Persistent link: https://www.econbiz.de/10008563277
This papers reviews main topics concerning sub-national revenues (intergovernmental transfers and taxes) and discusses some policy options to develop own sub-national revenues. The review covers the political-legal framework and the fiscal outcomes, finding that: i) intergovernmental transfers...
Persistent link: https://www.econbiz.de/10009643874
This paper studies the effect of costly taxation on the fiscal response of local governments to intergovernmental transfers. Using a panel dataset of Peruvian municipalities, I find robust evidence that central government's grants have a greater stimulatory effect in municipalities facing higher...
Persistent link: https://www.econbiz.de/10010550556
The purpose of this paper is to identify the causal relationship between intergovernmental transfers and fiscal effort. Empirical evidence from Peruvian municipalities supports a negative relation. The substitution effect is decreasing on the level of municipalities’ expenditure and tends to...
Persistent link: https://www.econbiz.de/10005619493
addressing the effects of corruption on public deficits through fiscal decentralization. For a sample of 31 OECD countries over … the period 1986–2010, we find that fiscal decentralization contributes to mitigating the adverse effects of corruption on … public deficits. In addition, our findings indicate diversity in the effects of fiscal decentralization, in that it appears …
Persistent link: https://www.econbiz.de/10011056289
literature that mainly deals with the effects of the former on government size. Using data for 97 developed and developing …
Persistent link: https://www.econbiz.de/10011110027