Partial fiscal decentralization and sub-national government fiscal discipline: empirical evidence from OECD countries

Content Provider	Semantic Scholar
Author	Asatryan, Zareh Feld, Lars P. Geys, Benny
Copyright Year	2015
Abstract	Recent theoretical research suggests that financing sub-national governments’ expenditure out of own revenue sources is linked to more responsible budgeting, because the financial implications of spending decisions then are internalized within a jurisdiction. We test this proposition empirically on a sample of 23 OECD countries over the 1975–2000 period, and find evidence in line with the hypothesis that greater revenue decentralization (measured as sub-national governments’ share of own source tax revenues in general government tax revenue) is associated with improved sub-national government budget deficits/surpluses. This finding is cross-validated with a novel, independent dataset consisting of all 34 OECD member states from 2002 to 2008.
Starting Page	307
Ending Page	320
Page Count	14
File Format	PDF HTM / HTML
DOI	10.1007/s11127-015-0250-2
Alternate Webpage(s)	https://ec.europa.eu/economy_finance/events/2012/2012-11-27-workshop/pdf/partial_fiscal_decentralization_en.pdf
Alternate Webpage(s)	https://www.econstor.eu/bitstream/10419/110780/1/cesifo_wp5279.pdf
Alternate Webpage(s)	https://brage.bibsys.no/xmlui/bitstream/handle/11250/293522/Geys_PC_2015.pdf?sequence=5
Alternate Webpage(s)	https://doi.org/10.1007/s11127-015-0250-2
Volume Number	163
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article