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Devolution dynamics of Spanish local government

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  • Maria Teresa Balaguer-Coll
  • Diego Prior
  • Emili Tortosa-Ausina

Abstract

Over the last few years, there has been a devolutionary tendency in many developed and developing countries. In this paper we propose a methodology to decompose whether the benefits in terms of efficiency derived from transfers of powers from higher to municipal levels of government (the ‘economic dividend’ of devolution) might increase over time. This methodology is based on linear programming approaches for efficiency measurement. We provide an application to Spanish municipalities, which have had to adapt to the European Stability and Growth Pact as well as to domestic regulation seeking local governments’ balanced budget. Results indicate that efficiency gains from enhanced decentralization have increased over time. However, the ways in which these gains accrue differ across municipalities—in some cases technical change is the main component, whereas in others catching up dominates.

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Bibliographic Info

Article provided by Pion Ltd, London in its journal Environment and Planning A.

Volume (Year): 42 (2010)
Issue (Month): 6 (June)
Pages: 1476-1495

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Handle: RePEc:pio:envira:v:42:y:2010:i:6:p:1476-1495

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References

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  1. Victor M. Giménez & Diego Prior, 2007. "Long- and Short-Term Cost Efficiency Frontier Evaluation: Evidence from Spanish Local Governments," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 28(1), pages 121-139, 03.
  2. Emili Tortosa Ausina & Diego Prior & María Teresa Balaguer-Coll, 2006. "Decentralization And Effiency In Spanish Local Goverment," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2006-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  3. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2010. "Devolution dynamics of Spanish local government," Environment and Planning A, Pion Ltd, London, Pion Ltd, London, vol. 42(6), pages 1476-1495, June.
  4. Ulrich Thießen, 2003. "Fiscal Decentralisation and Economic Growth in High-Income OECD Countries," Fiscal Studies, Institute for Fiscal Studies, Institute for Fiscal Studies, vol. 24(3), pages 237-274, September.
  5. Francisco Requena & Guadalupe Serrano & Joan Martín Montaner, 2009. "The effects of immigration on the productive structure of Spanish regions," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2009-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  6. Emili Tortosa Ausina & Diego Prior & María Teresa Balaguer-Coll, 2004. "On The Determinants Of Local Government Performance: A Two-Stage Nonparametric Approach," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2004-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  7. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, Elsevier, vol. 31(9), pages 1597-1616, September.
  8. De Borger, B, et al, 1994. " Explaining Differences in Productive Efficiency: An Application to Belgian Municipalities," Public Choice, Springer, Springer, vol. 80(3-4), pages 339-58, September.
  9. De Borger, Bruno & Kerstens, Kristiaan, 1996. "Cost efficiency of Belgian local governments: A comparative analysis of FDH, DEA, and econometric approaches," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 26(2), pages 145-170, April.
  10. Pilar Beneito López & Amparo Sanchis Llopis & María Engracia Rochina Barrachina, 2009. "The role of learning in innovation: in-house versus externally contracted R&D experience," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2009-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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Citations

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Cited by:
  1. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, . "Devolution Dynamics of Spanish Local Government," Working Paper, Department of Business Economics, Universitat Autonoma de Barcelona 201001, Department of Business Economics, Universitat Autonoma de Barcelona.
  2. Emili Tortosa Ausina & Diego Prior Jiménez & María Teresa Balaguer-Coll, 2010. "Output complexity, environmental conditions, and the efficiency of municipalities: a robust metafrontier approach," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2010-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  3. Ana María Sabater & Araceli Mora & Beatriz García Osma, 2010. "Strategic accounting choice around firm level labour negotiations," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2010-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  4. Inés Küster Boluda & Natalia Vila López & Vicente Castillo, 2010. "Efectos de los videojuegos en las marcas emplazadas: la transmisión de imagen a través de las emociones," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2010-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  5. Asier Minondo & Francisco Requena Silvente, 2010. "Welfare gains from imported varieties in Spain, 1988-2006," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2010-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  6. Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2010. "In Search of the Economic Dividend of Devolution: Spatial Disparities, Spatial Economic Policy and Decentralisation in the UK," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0062, Spatial Economics Research Centre, LSE.
  7. M. Teresa Sanchis Llopis & Vicente Esteve Garcia & Antonio Cubel, 2010. "International technology diffusion through patents during the second half of the XXth century," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2010-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  8. Elena Pardo & Inés Küster Boluda & Torpong Suemanotham, 2010. "Product placement in video games as a marketing strategy: an attempt to analysis in Disney company," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2010-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  9. Francisco Mas Ruiz & Juan Luis Nicolau Gonzálbez, 2010. "Contribution of individual to collective brands," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2010-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  10. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2013. "On the determinants of local government debt: Does one size fit all?," Working Papers, Economics Department, Universitat Jaume I, Castellón (Spain) 2013/16, Economics Department, Universitat Jaume I, Castellón (Spain).
  11. Thieme, Claudio & Prior, Diego & Tortosa-Ausina, Emili, 2013. "A multilevel decomposition of school performance using robust nonparametric frontier techniques," Economics of Education Review, Elsevier, Elsevier, vol. 32(C), pages 104-121.
  12. Nikolaos Georgantzis & Aitor Ciarreta & Carlos Gutiérrez-Hita, 2010. "Renewable sources, technology mix, and competiton in liberalized electricity markets: the case of Spain," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2010-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  13. Ginés Hernández Cánovas & María Camino Ramón Llorens, 2010. "Venture capitalists in Spain: cluster analysis of criteria used in the screening process," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2010-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  14. Ángel Pardo Tornero & María Dolores Furió Ortega, 2010. "Politics and elections at the Spanish stock exchange," Working Papers. Serie EC, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) 2010-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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