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Full-Text Articles in Social and Behavioral Sciences
The Effect Of Crises On Fiscal And Political Recentralization: Large-Panel Evidence, Gustavo Canavire-Bacarreza, Pablo Evia Salas, Jorge Martinez-Vazquez
The Effect Of Crises On Fiscal And Political Recentralization: Large-Panel Evidence, Gustavo Canavire-Bacarreza, Pablo Evia Salas, Jorge Martinez-Vazquez
ICEPP Working Papers
Economic stability plays a key role in any fiscal and political decentralization process. In the face of financial and economic shocks, when revenues and expenditures are reduced, countries may decide to gather resources at the central level—creating a recentralization scenario—or may take away devolved powers and centralize political institutions. Using data for 75 countries, we examine the effects of economic crisis on fiscal and political decentralization. We find that several types of crises lead to fiscal recentralization; only in the case of domestic borrowing crises is the effect further revenue decentralization, probably reflecting the central government’s willingness to empower subnational …
Electoral Accountability And Fiscal Federalism:The Case Of Peru, Janet Porras Mendoza, Charles R. Hankla, Jorge Martinez-Vazquez
Electoral Accountability And Fiscal Federalism:The Case Of Peru, Janet Porras Mendoza, Charles R. Hankla, Jorge Martinez-Vazquez
ICEPP Working Papers
Accountability is at the heart of the democratic enterprise. One commonly touted benefit of decentralization is that it promotes this accountability by allowing sub-national governments to target fiscal policy more precisely to the varying preferences of people in different locales. But if accountability is really functioning as it should, then citizens should use the ballot box to reward and punish local officials for their concrete policy behavior. In other words, we should not only be able to link the presence of decentralization with improvements in local public goods, but we should also be able to connect voting behavior in specific …