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Does Decentralization Increase Government Responsiveness to Local Needs?: Evidence from Bolivia (2004)
| Content Provider | CiteSeerX |
|---|---|
| Author | Faguet, Jean-Paul Jel, D. |
| Abstract | This paper examines whether decentralization increases the responsiveness of public investment to local needs using a unique database from Bolivia. Empirical tests show that investment patterns in human capital and social services changed significantly after decentralization. These changes are strongly and positively related to objective indicators of need. Nationally, these changes were driven by the smallest, poorest municipalities investing devolved funds in their highest-priority projects. The findings contradict common claims that local government is too corrupt, institutionally weak, or prone to interest-group capture to improve upon central governments allocation of public resources. |
| File Format | |
| Journal | Journal of Public Economics |
| Language | English |
| Publisher Date | 2004-01-01 |
| Access Restriction | Open |
| Subject Keyword | Local Need Decentralization Increase Government Responsiveness Empirical Test Highest-priority Project Common Claim Unique Database Public Resource Investment Pattern Objective Indicator Interest-group Capture Human Capital Social Service Public Investment Central Government Allocation Local Government |
| Content Type | Text |
| Resource Type | Article |
