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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 …


Further Evidence On Revenue Decentralization And Inflation, John Thornton Mar 2007

Further Evidence On Revenue Decentralization And Inflation, John Thornton

John Thornton

Results from a panel regression study of 19 OECD member countries suggest that when the measure of revenue decentralization is limited to the revenues over which sub-national governments have full autonomy, its impact on inflation is not statistically significant.


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 …


Fiscal Decentralization And Economic Growth Reconsidered, John Thornton Dec 2006

Fiscal Decentralization And Economic Growth Reconsidered, John Thornton

John Thornton

Recent studies examining the relation between fiscal decentralization and economic growth have failed to take account of the extent of the independent taxing powers available to sub-national governments and thus have substantially overstated the degree of effective decentralization. Results from a cross section study of 19 OECD member countries suggest that when the measure of fiscal decentralization is limited to the revenues over which sub-national governments have full autonomy, its impact on economic growth is not statistically significant.