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Economics

Georgia State University

Economics Dissertations

Fiscal decentralization

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Full-Text Articles in Social and Behavioral Sciences

Two Essays On Public Economics: The Consequences Of Fiscal Decentralization On Poverty And Inequality, And The Second Best Solution To The Public Expenditures’ Problem, Cristian F. Sepulveda May 2010

Two Essays On Public Economics: The Consequences Of Fiscal Decentralization On Poverty And Inequality, And The Second Best Solution To The Public Expenditures’ Problem, Cristian F. Sepulveda

Economics Dissertations

This dissertation consists of two independent essays on public economics. The first essay studies the consequences of fiscal decentralization on poverty and income inequalities. This essay describes the possible channels through which fiscal decentralization might affect poverty and income inequalities, and carries out an empirical analysis with data of a large number of countries at different stages of development, for the period 1971-2000. Fiscal decentralization is found to have significant effects on poverty and income inequalities. These findings are important because they suggest, contrary to the traditional public finance theory, that sub-national governments can play an important role in the …


A Comparative Study Of Fiscal Decentralization In China And India, Yinghua Jin Oct 2009

A Comparative Study Of Fiscal Decentralization In China And India, Yinghua Jin

Economics Dissertations

This dissertation provides an empirical test of the effects of fiscal decentralization and horizontal fiscal equalization on economic growth and examines the potential trade-off between horizontal fiscal equalization and economic growth in both China and India. Chapter II examines the effects of both fiscal decentralization and horizontal fiscal equalization on economic growth in China, particularly the effect of the Tax Sharing System reform enacted in 1994. Compared with previous studies, using more complete data providing better measures and more econometrically sophisticated instrumental variable procedures, we find that there is no substantial evidence of a trade-off between horizontal fiscal equalization and …


Fiscal Decentralization And Public Sector Employment: A Cross-Country Analysis, Ming-Hung Yao Aug 2007

Fiscal Decentralization And Public Sector Employment: A Cross-Country Analysis, Ming-Hung Yao

Economics Dissertations

This dissertation seeks to investigate the relationship between public sector employment and fiscal decentralization. We develop a theoretical model that helps us understand the interaction of the central executive's and subnational governor's decisions on the level of public employees at the central and subnational levels. Our empirical work shows that fiscal decentralization policy shifts central government employees to the subnational government level and that the increase in public employees at the subnational government level overwhelms the decrease in public employees at the central level. As a result, the level of total public sector employees increases with the degree of fiscal …


The Impact Of Education Decentralization On Education Output: A Cross-Country Study, Eunice Heredia-Ortiz Jan 2007

The Impact Of Education Decentralization On Education Output: A Cross-Country Study, Eunice Heredia-Ortiz

Economics Dissertations

This dissertation examines, both theoretically and empirically, the impact of expenditure decentralization and decision-making in education on education output measured through net enrollment rates, repetition rates, dropout rates, completion rates, and test scores in science at the primary school level. We develop a theoretical model based on a behavioral production function model that investigates the potential direct effects of education decentralization on output, and indirect effects of education decentralization through its impact on family, school and teacher inputs. We develop an unbalanced panel data model of education decentralization by using various econometric estimators on a dataset of fifty-nine countries, developed …


Fiscal Decentralization And Poverty Reduction Outcomes: Theory And Evidence, Guevera Assamoi Yao Jan 2007

Fiscal Decentralization And Poverty Reduction Outcomes: Theory And Evidence, Guevera Assamoi Yao

Economics Dissertations

This dissertation examines the effect of fiscal decentralization on poverty reduction and explores potential transmission channels through pro-poor sectoral outcomes such as basic education, basic healthcare and agricultural productivity. We first develop a theoretical model to explain the interaction between decentralization and poverty reduction outcomes. In particular, we show that the marginal effect of fiscal decentralization on pro-poor sectors depends largely on the outcome of the trade-off between potential benefits derived from better matching of local preference due to local proximity, and the lack of technical capacity at the local level. This finding provides, in a way, a theoretical explanation …