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Fiscal Decentralization and Federalism in Latin America

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  • Maria Escobar-Lemmon

Abstract

In contrast to years of centralization when the national government dominated the states and municipalities, fiscal decentralization is now taking place throughout Latin America. This study considers the reasons for this change. Fiscal decentralization merits separate attention because the financial independence of subnational governments ultimately determines their success and power. Competing political and economic explanations are tested on a sample of 17 countries between 1985 and 1995. While federalism is a significant predictor of greater fiscal decentralization, other factors such as presidential power, structural adjustment, level of development, and country size also determine the level of fiscal decentralization. Copyright , Oxford University Press.

Suggested Citation

  • Maria Escobar-Lemmon, 0. "Fiscal Decentralization and Federalism in Latin America," Publius: The Journal of Federalism, CSF Associates Inc., vol. 31(4), pages 23-41.
    • Handle: RePEc:oup:publus:v:31:y::i:4:p:23-41
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    Cited by:

    1. Isabella Alcañiz & RicardoA. Gutierrez, 2020. "Between the Global Commodity Boom and Subnational State Capacities:Payment for Environmental Services to Fight Deforestation inArgentina," Global Environmental Politics, MIT Press, vol. 20(1), pages 38-59, February.
    2. Smith, Heidi Jane M. & Revell, Keith D., 2016. "Micro-Incentives and Municipal Behavior: Political Decentralization and Fiscal Federalism in Argentina and Mexico," World Development, Elsevier, vol. 77(C), pages 231-248.
    3. Ligia Alba Melo-Becerra, 2016. "Sub-national fiscal policy under cooperative and non-cooperative models," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 35(Especial ), pages 253-279, January.
    4. Tehmina S. Khan & Mr. John Norregaard, 2007. "Tax Policy: Recent Trends and Coming Challenges," IMF Working Papers 2007/274, International Monetary Fund.
    5. Ligia Alba Melo-Becerra, 2015. "The role of the sub-national public sector in the stabilization function: Evidence from the Colombian case for the period 1990-2001," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 7(2), pages 299-324, July.

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