Fiscal decentralization, democracy and government size: Disentangling the complexities

Fiscal Decentralization and Government Size

This paper explores the link between fiscal decentralization and government size in Latin America. While most related work attempts to test Brennan and Buchannan's "Liviathan" hypothesis, here the emphasis is placed on a different channel: the potential for decentralization to aggravate the common pool problem. In addition to the degree of expenditure decentralization, we consider the importanc...

Fiscal Decentralization and Government Size in Latin

Fiscal Decentralization and Government in Latin America.PDF

The views and interpretations in this document are those of the authors and should not be attributed to the Inter-American Development Bank, or to any individual acting on its behalf. The Office of the Chief Economist (OCE) publishes working paper series and books on diverse economic issues. To obtain a complete list of OCE publications, please visit our Web Site at: am grateful for their input...

Fiscal decentralization, ideology, and the size of the public sector

Article history: Received 18 August 2009 Received in revised form 9 February 2011 Accepted 19 March 2011 Available online 13 April 2011 No consensus has yet emerged on whether fiscal decentralization facilitates or impedes the growth of the public sector. One explanation for this ambiguity in the literature is that the effect of fiscal decentralization on public sector size depends on the gover...

Globalization and Fiscal Decentralization

The international integration of markets and the decentralization of authority within nation states are two defining trends of the contemporary era. A popular speculation is that globalization has caused a downward shift in the locus of governance by reducing the economic costs of smallness and allowing localities and regions with distinctive preferences to pursue their own political and econom...