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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 …
Sub-National Revenue Mobilization In Peru, Gustavo J. Canavire-Bacarreza, Jorge Martinez-Vazquez, Cristian Sepulveda
Sub-National Revenue Mobilization In Peru, Gustavo J. Canavire-Bacarreza, Jorge Martinez-Vazquez, Cristian Sepulveda
ECON Publications
This paper analyzes the problem of sub-national revenue mobilization in Peru and proposes several policy reforms to improve collection performance while maintaining a sound revenue structure. In particular, the paper analyzes the current revenues of regional and municipal governments and identifies the main priorities for reform. Among the most important problems are the acute inequalities and inefficiencies associated with revenue sharing from extractive industries. These revenues represent a significant share of sub-national budgets and currently they are distributed without consideration of the relative expenditure needs or fiscal capacity of sub-national units. In order to address this problem, the paper proposes …
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
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 …
La Descentralizacion Tributaria En Las Comunidades Autonomas De Regimen Comun: Un Proceso Inacabado. (Tax Decentralization In The Autonomous Communities: An Unfinished Process. With English Summary.).”, Santiago Lago-Peñas, Jorge Martinez-Vazquez
La Descentralizacion Tributaria En Las Comunidades Autonomas De Regimen Comun: Un Proceso Inacabado. (Tax Decentralization In The Autonomous Communities: An Unfinished Process. With English Summary.).”, Santiago Lago-Peñas, Jorge Martinez-Vazquez
ECON Publications
Aunque el proceso de descentralización fiscal en España ha avanzado de forma muy notable en las tres últimas décadas, existen algunas asignaturas pendientes. Entre las más importantes se encuentra la descentralización del poder tributario a las Comunidades Autónomas de régimen común. Este artículo de panorama se concentra en lo que no se ha hecho del todo bien y por qué razones, al tiempo que se apuntan las direcciones de reforma para el futuro. El trabajo se divide en dos partes. En la primera, nos ocupamos de los fundamentos teóricos de la asignación tributaria en el caso de gobiernos multinivel y …
Financing Subnational Governments / Financiación De Las Haciendas Subcentrales, Roy W. Bahl
Financing Subnational Governments / Financiación De Las Haciendas Subcentrales, Roy W. Bahl
ECON Publications
This study deals with the assignment of tax competencies to subcentral governments and with the structure of this assignment of revenues. This review reconsiders the issues raised by Musgrave twenty-five years later. It poses the question of whether the tendency towards internationalization in the assignment of taxes follows the steps prescribed by economists, and it concludes with some reflections on the most probably future of the decentralization of the tax systems. In the course of this discussion, we distinguish between industrialized countries, countries in transition and developing countries.
A Comparative Study Of Fiscal Decentralization In China And India, Yinghua Jin
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 …
Pillars Of Fiscal Decentralization, Roy W. Bahl
Pillars Of Fiscal Decentralization, Roy W. Bahl
ECON Publications
Fiscal decentralization can de be defined as the process of transferring budgetary authority from central government to elected subnational governments in order to grant them power to make decisions regarding taxes and expenses. This paper discusses, theoretically and empirically, what some consider the three pillars of fiscal decentralization: expenditure assignment, revenue assignment, and intergovernmental transfers. In the real world, almost all countries have these three pillars. However, there are no two countries alike because of the different possibilities at hand in designing a decentralized fiscal framework. Here, the international experience is studied to shed some light on the various institutional …
Fiscal Decentralization And Public Sector Employment: A Cross-Country Analysis, Ming-Hung Yao
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
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
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 …