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Less than you thought: The fiscal autonomy of sub-central governments

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  • Hansjörg Blöchliger
  • David King

Abstract

State and local governments in OECD countries have access to various fiscal resources. Discretion over them varies considerably, and so does sub-central governments’ power to shape their budget and to determine outcomes like public sector efficiency, equity in access to public services or the long term fiscal stance. Data on the revenue structure of sub-central governments (SCG) would therefore be helpful. But indicators have long insufficiently reflected the way state and local budgets are funded. The most frequently used indicator is the ratio of SCG to total tax revenue, which is a poor measure for assessing the true autonomy SCGs enjoy. Since the power over fiscal revenue is a critical determinant for government finance, a set of more refined indicators for assessing fiscal autonomy should be established.

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File URL: http://dx.doi.org/10.1787/eco_studies-v2006-art12-en
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Bibliographic Info

Article provided by OECD Publishing in its journal OECD Economic Studies.

Volume (Year): 2006 (2006)
Issue (Month): 2 ()
Pages: 155-188

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Handle: RePEc:oec:ecokaa:5l4jgl68fjr7

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Cited by:
  1. Wouter Vermeulen & Maarten Allers, 2013. "Fiscal Equalization and Capitalization: Evidence from a Policy Reform," CPB Discussion Paper 245, CPB Netherlands Bureau for Economic Policy Analysis.
  2. Dufrénot, G. & Frouté, P. & Schalck, C., 2010. "The French Regions’ Borrowing Behaviours. How heterogeneous are they?," Working papers 289, Banque de France.

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