Fiscal Decentralization and Local Finance in Developing Countries

Fiscal Decentralization and Local Finance in Developing Countries PDF Author: Roy Bahl
Publisher: Edward Elgar Publishing
ISBN: 1786435306
Category : Business & Economics
Languages : en
Pages : 430

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Book Description
This book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of subnational government finance. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. It focuses on the key choices that must be made in decentralizing, on how economic and political factors shape the choices that countries make, and on how, by paying more attention to the need for a more comprehensive approach and the critical connections between different components of decentralization reform, everyone involved might get more for their money.

Fiscal Decentralization and Local Finance in Developing Countries

Fiscal Decentralization and Local Finance in Developing Countries PDF Author: Roy Bahl
Publisher: Edward Elgar Publishing
ISBN: 1786435306
Category : Business & Economics
Languages : en
Pages : 430

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Book Description
This book draws on experiences in developing countries to bridge the gap between the conventional textbook treatment of fiscal decentralization and the actual practice of subnational government finance. The extensive literature about the theory and practice is surveyed and longstanding problems and new questions are addressed. It focuses on the key choices that must be made in decentralizing, on how economic and political factors shape the choices that countries make, and on how, by paying more attention to the need for a more comprehensive approach and the critical connections between different components of decentralization reform, everyone involved might get more for their money.

Fiscal Federalism-Decentralisation and the size of government

Fiscal Federalism-Decentralisation and the size of government PDF Author: Ina Walcherberger
Publisher: GRIN Verlag
ISBN: 3668159157
Category : Political Science
Languages : en
Pages : 63

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Book Description
Master's Thesis from the year 2015 in the subject Business economics - Economic Policy, grade: -, , language: English, abstract: A large number of countries are trying to improve their ability to serve their inhabitants more efficiently and more effectively. To accomplish this ambition, a reawakening of interest in the practices and in the principles and of fiscal federalism is mandatory. Questions arise such as: - How many taxes are necessary to provide an efficient amount of local public goods? - How should the taxes be allocated most reasonable between the different levels of governments? - Which level of government should have how much freedom of choice concerning tax revenues and tax expenditures, or differently, which degree of decentralisation is most constructive? Generally, two conflicting possibilities to provide an efficient level of local public goods are existing: The first one proposes a high degree of centralisation of the tax system which would lead, if the government is totally benevolent, to an efficient output of local public goods. An argument against centralisation is that a centralised system cannot serve the different needs and preferences of the inhabitants of unequal regions. The second perception states that an efficient level of local public can be provided if the system is decentralised. A possible disadvantage of decentralisation is the appearance of tax competition which may lead to an inefficient low level of local public goods. The discrepancy between these two conflictive systems is going to be discussed in this thesis. Furthermore, politico-economic mechanisms, which are supposed to explain the correlation between degree of centralisation and size of government are introduced which leads to the research question of this thesis: Does a decentralised tax system lead to a smaller size of government compared to a centralised tax system? Which politico-economic mechanisms are responsible for this correlation? In relation to these questions, different approaches are discussed, underlined by theoretical and empirical models. The first one, a public choice approach, states that central governments operate like monopolists, or leviathans, extracting as much tax revenues from the citizens as possible. The aim is not to maximise social welfare, but to increase their control over the resources of the economy. This approach was formulated by Brennan’s and Buchnan’s Leviathan hypothesis (1980), stating, subject to the above mentioned conditions, that a higher degree of decentralisation leads to a smaller size of government. [...]

The Challenge of Local Government Size

The Challenge of Local Government Size PDF Author: Santiago Lago-Peñas
Publisher: Edward Elgar Publishing
ISBN: 1782544305
Category : Political Science
Languages : en
Pages : 305

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Book Description
In the efficient delivery of local public services, size matters. Many countries around the world have vertical government structures that are perceived as inefficient because of their high levels of jurisdictional fragmentation. This timely volume examines the different strategies used to address local government fragmentation and their observed results and consequences. Expert contributors in economics and political science offer a comprehensive breakdown of the issue of local jurisdiction fragmentation and provide recommendations for successful policy reform. Topics discussed include economies of scale, the costs and benefits of voluntary and forced amalgamation programs, the correlation between government size and corruption, privatization, and inter-municipal cooperation. A combination of theory and empirical evidence provides depth and makes this book an invaluable addition to the literature. Economists, public administrators and political scientists will find much of interest in this innovative volume, as will professors, students and international institutions with an interest in local government structure and reform.

Fiscal Decentralization and Local Government Size

Fiscal Decentralization and Local Government Size PDF Author: Swando Sirait
Publisher:
ISBN:
Category :
Languages : en
Pages : 6

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Book Description
The aim of this study is to examine the association of fiscal decentralization in relation to government size in Indonesia. Literature theory of leviathan model argued that government behavior tends to maximize their revenue and expand their spending (government size). The constitutional way to hamper this behavior is limitation access of central government to revenue and giving revenue authorization to sub national government. Panel data of 33 provinces in Indonesia are deployed to examine the association of fiscal decentralization and government size. Proxies of fiscal decentralization are, local tax revenue, usher charge, decentralization revenue and government transfer. The empirical evidence in this study support previous study of leviathan hypothesis that fiscal decentralization tend to decrease government size.

Fiscal Decentralization and the Efficiency of Public Service Delivery

Fiscal Decentralization and the Efficiency of Public Service Delivery PDF Author: Moussé Sow
Publisher: International Monetary Fund
ISBN: 1475564031
Category : Business & Economics
Languages : en
Pages : 30

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Book Description
This paper explores the impact of fiscal decentralization on the efficiency of public service delivery. It uses a stochastic frontier method to estimate time-varying efficiency coefficients and analyzes the impact of fiscal decentralization on those efficiency coefficients. The findings indicate that fiscal decentralization can improve the efficiency of public service delivery but only under specific conditions. First, the decentralization process requires adequate political and institutional environments. Second, a sufficient degree of expenditure decentralization seems necessary to obtain favorable outcomes. Third, decentralization of expenditure needs to be accompanied by sufficient decentralization of revenue. Absent those conditions, fiscal decentralization can worsen the efficiency of public service delivery.

Fiscal Decentralization Reforms

Fiscal Decentralization Reforms PDF Author: Michal Plaček
Publisher: Springer Nature
ISBN: 3030467589
Category : Law
Languages : en
Pages : 214

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Book Description
This book examines the impacts of fiscal decentralization reforms on the efficiency of local governments in Central and Eastern European (CEE) countries. By offering a comparative perspective and by applying econometric methods and regression models, it analyses various reform trajectories and their effects on individual CEE countries. Furthermore, the book discusses input and output indicators for evaluating the efficiency of municipalities. Readers will learn about the common features of these countries, the impact of path dependence, and future prospects for decentralization reforms. In closing, the book discusses modern management and administration methods, opportunities for cooperation between municipalities, co-creative service delivery, and other measures that could improve the efficiency of public service provision.

Fiscal fragmentation in decentralized countries

Fiscal fragmentation in decentralized countries PDF Author: Richard Miller Bird
Publisher: Edward Elgar Publishing
ISBN: 1781007616
Category : Business & Economics
Languages : en
Pages : 451

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Book Description
Most countries, developed and developing, are fiscally decentralized with regional and local governments of varying importance. In many of these countries, some of these sub-national governments differ substantially from others in terms of wealth, ethnic, religious, or linguistic composition. This book considers how fiscal arrangements may strengthen or weaken national solidarity and the effectiveness with which public services are provided. In particular, the nation's ability to cope with changes created by decentralization is explored.

On the Measurement and Impact of Fiscal Decentralization

On the Measurement and Impact of Fiscal Decentralization PDF Author: Robert D. Ebel
Publisher:
ISBN:
Category :
Languages : en
Pages : 26

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Book Description
The typical post-Bretton Woods era development approach that emphasized central government-led development efforts has changed dramatically, and local governments have clearly emerged as players in development policy. The thinking about what is important to achieve in development objectives is changing as fiscal decentralization reforms are being pursued by many countries around the world. In this context, a number of studies have attempted to quantify the impact of decentralization by relating some measure of it to economic outcomes of fiscal stability, economic growth, and public sector size. But decentralization is surprisingly difficult to measure. Nearly all cases examining the relationship between decentralization and macroeconomic performance have relied on the Government Finance Statistics (GFS) of the International Monetary Fund. However, despite its merits, GFS falls short in providing a full picture of fiscal decentralization. For some countries, however, there is data that more accurately captures fiscal responsibilities among different types of governments.This paper - a product of the Economic Policy and Poverty Reduction Division, World Bank Institute - is part of a larger effort in the institute to serve as a knowledge center and as a partner to achieve poverty reduction in developing and transition countries. The authors may be contacted at [email protected] or [email protected].

Fiscal Federalism and Government Size in Transition Economies

Fiscal Federalism and Government Size in Transition Economies PDF Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451858795
Category : Business & Economics
Languages : en
Pages : 29

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Book Description
This paper examines the relationship between fiscal decentralization—the assignment of revenue sources and expenditure functions across government levels—and government size in Moldova. The empirical results—based on data for a cross-section of Moldovan subnational governments in 1998—suggest that fiscal decentralization is associated with larger subnational governments and that the country’s revenue-sharing system imposes a constraint on subnational spending. Moldova is currently undergoing unprecedented reform of its system of intergovernmental fiscal relations, and consolidation of its local government. This reform package is crucial to ensure that decentralization does not increase the size of government.

Implementing Decentralized Local Governance

Implementing Decentralized Local Governance PDF Author: Anwar Shah
Publisher: World Bank Publications
ISBN:
Category : Decentralization in government
Languages : en
Pages : 45

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Book Description