Fiscal decentralization and government quality in the OECD

Using indicators of fiscal decentralization which control for intergovernmental transfers and grants, it is shown that decentralization has a positive impact on government quality but that this positive effect is mitigated in the presence of regional elections and multi-level government. ►We estimat...

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Veröffentlicht in:Economics letters 2011-06, Vol.111 (3), p.191-193
Hauptverfasser: Kyriacou, Andreas P., Roca-Sagalés, Oriol
Format: Artikel
Sprache:eng
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Zusammenfassung:Using indicators of fiscal decentralization which control for intergovernmental transfers and grants, it is shown that decentralization has a positive impact on government quality but that this positive effect is mitigated in the presence of regional elections and multi-level government. ►We estimate the impact of fiscal decentralization on government quality in OECD countries. ►We use indicators of fiscal decentralization which control for intergovernmental grants and transfers. ►Fiscal decentralization improves government quality but not in the presence of sub-national elections or multi-tier government structures.
ISSN:0165-1765
1873-7374
DOI:10.1016/j.econlet.2011.02.019