Public budget composition, fiscal (de)centralization, and welfare
نویسندگان
چکیده
منابع مشابه
Public Budget Composition, Fiscal (De)Centralization and Welfare
We present a dynamic two-region model with overlapping generations. There are two types of productive public expenditure, education and infrastructure funding, and governments decide optimally on budget size (tax rate) and its allocation across the two outlays. Productivity of government infrastructure spending can differ across regions. This assumption follows well established empirical eviden...
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In this paper, we study a model à la Rogoff (1990) where politicians distort fiscal policy to signal their competency, but where fiscal policy can be centralized or decentralized. Our main focus is on the equilibrium probability that fiscal policy is distorted in any region, which we call the probability of a Political Budget Cycle (PBC). With centralization, there is the possibility of selecti...
متن کاملFiscal decentralization and public debt
Excessive borrowing by subnational governments due to soft budget constraints and intergovernmental coordination failures might be one of the perils of decentralization. Despite a large body of case studies, empirical investigations on whether decentralization increases consolidated public debt levels are still scarce. This paper contributes to the literature by exploring econometrically for se...
متن کاملOn the Welfare Gains from Fiscal Decentralization
The traditional economic case for decentralised fiscal choice is based on the welfare gains from an improved allocation of resourceswithin the public sector. Fiscal decentralizationallows individualjurisdictions(I shall refer to them as «local governments») to tailor the levels of local public outputs to the particular tastes and other circumstances that characterizetheir respective communities...
متن کاملFiscal 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...
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ژورنال
عنوان ژورنال: Canadian Journal of Economics/Revue canadienne d'économique
سال: 2010
ISSN: 0008-4085,1540-5982
DOI: 10.1111/j.1540-5982.2010.01597.x