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We consider a country whose government provides a bundle of goods and services through a multi-tier administrative organization. We compare the optimal architectures of public governance (i.e. the division of the state into several tiers, the distribution of services among them, their number of...
Persistent link: https://www.econbiz.de/10011903798
Fiscal decentralization is high on the agenda in policy fora. This paper empirically investigates the underlying causes … of fiscal decentralization, based on the predictions of a simple political economy model. We argue that the likeliness … support the relevance of political factors as determinants of fiscal decentralization. The relationship between central …
Persistent link: https://www.econbiz.de/10013120275
We can enhance development by making it easier for people to “vote with their feet” between jurisdictions. Few, if any, policy reforms can achieve such enormous increases in economic growth and opportunity. Foot voting is, in several crucial respects, a better mechanism of political...
Persistent link: https://www.econbiz.de/10012899463
decentralization on economic growth. Much of the traditional literature focuses on the efficiency aspects of a decentralized provision … of public services. However, decentralization may also increase growth by raising the ability of the political system to … innovate and carry out reforms. On the contrary, some authors argue that decentralization increases corruption and government …
Persistent link: https://www.econbiz.de/10013045930
From the literature on decentralization, it appears that the fiscal vertical imbalance is somehow inherent to multi …
Persistent link: https://www.econbiz.de/10010259921
The paper addresses the welfare implications of conditional grants in the presence of inefficiencies in regional production. While conditional grants may set incentives for regions to reduce inefficiencies, resources are wasted in the process of grant-seeking. We provide a theoretical model to...
Persistent link: https://www.econbiz.de/10008748328
featuring fiscal decentralization, local governments as custodians of land use and development, along with a land development …
Persistent link: https://www.econbiz.de/10013068713
An unfunded expenditure mandate occurs when a local government must provide a good or service by dictate of a higher level of government that does not supply an accompanying revenue source to fully finance the expenditure. This paper is the first to provide empirical evidence on the influence of...
Persistent link: https://www.econbiz.de/10012979186
This paper provides a political-economy explanation of the degree of centralization in economic policy making. To determine which policies are to be centralized, regions select representatives who then negotiate the degree of centralization and the regional cost shares of centrally decided...
Persistent link: https://www.econbiz.de/10012755787
Motivated by the recent experience in the Russian Federation, this paper examines the implications of imposing central control on the budgetary activities of a subnational government. In a highly stylised multi-task principal-agent model (Holmstrom and Milgrom (1991)), a central government...
Persistent link: https://www.econbiz.de/10012446063