Naslov
FISCAL DECENTRALISATION AND THE SIZE OF GOVERNMENT: A REVIEW OF THE EMPIRICAL LITERATURE

Autori
Golem Silvia

Izvornik
Financial theory and practice (Zagreb) (1846-887X) 1 (2010), 34; 53-69

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, pregledni rad, znanstveni

Ključne riječi
the size of government; fiscal decentralisation; intergovernmental grants; sub-national expenditures; sub-national own-source revenues

Sažetak
Within the public choice framework, it has been argued that decentralised authority over the provision and financing of certain public goods and services induces competitive pressure among different governmental units and consequently reduces the size of government. However, in many countries, fiscal decentralisation seems to have occurred almost exclusively through devolution of expenditure activities, without the accompanying devolution of the tax authority. We address this issue in detail, and discuss the repercussions of the resulting vertical fiscal imbalance on the total size of government. We also discuss alternative, demand-side channels of the influence of fiscal decentralisation on the size of government. In the empirical literature that we review, little consensus on the relationship between fiscal decentralisation and the size of government is reached.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA