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Fiscal autonomy and quality of governance in OECD countries

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  • David Bartolini

    ()
    (Department of Economics and Social Sciences Polytechnic University of Marche)

  • Raffaella Santolini

    ()
    (Department of Economics and Social Sciences Polytechnic University of Marche)

Abstract

Using a panel of 24 OECD countries, we study the link between the autonomy of sub-national governments and the quality of governance of a country. The results show that fiscal autonomy worsens citizens' perceptions of governance quality. In particular, the delegation of policy responsibilities to the regional level produces a robust negative effect on quality.

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Bibliographic Info

Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 33 (2013)
Issue (Month): 1 ()
Pages: 706-713

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Handle: RePEc:ebl:ecbull:eb-13-00033

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Related research

Keywords: Fiscal autonomy; Quality of governance; Fixed-effects vector decomposition estimator; Panel data analysis;

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  1. Beck, T.H.L. & Clarke, G. & Groff, A. & Keefer , P. & Walsh, P., 2001. "New tools in comparative political economy: The database of political institutions," Open Access publications from Tilburg University, Tilburg University urn:nbn:nl:ui:12-3125517, Tilburg University.
  2. Kyriacou, Andreas P. & Roca-Sagalés, Oriol, 2011. "Fiscal decentralization and government quality in the OECD," Economics Letters, Elsevier, Elsevier, vol. 111(3), pages 191-193, June.
  3. Breusch, Trevor & Ward, Michael B & Nguyen, Hoa & Kompas, Tom, 2010. "On the fixed-effects vector decomposition," MPRA Paper 21452, University Library of Munich, Germany.
  4. Ruben Enikolopov & Ekaterina Zhuravskaya, 2004. "Decentralization and Political Institutions," Economics Working Papers, Institute for Advanced Study, School of Social Science 0045, Institute for Advanced Study, School of Social Science.
  5. Seabright, Paul, 1994. "Accountability and Decentralization in Government: An Incomplete Contracts Model," CEPR Discussion Papers, C.E.P.R. Discussion Papers 889, C.E.P.R. Discussion Papers.
  6. Andreas P. Kyriacoua & Oriol Roca-Sagalésb, 2010. "Fiscal and Political Decentralization and Government Quality," International Center for Public Policy Working Paper Series, at AYSPS, GSU, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University paper1005, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  7. Cai, Hongbin & Treisman, Daniel, 2004. "State corroding federalism," Journal of Public Economics, Elsevier, Elsevier, vol. 88(3-4), pages 819-843, March.
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