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Local Decentralization and the Quality of Public Services in Europe

Author

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  • Andreas P. Kyriacou

    (Universitat de Girona)

  • Oriol Roca-Sagalés

    (Universitat Autònoma de Barcelona)

Abstract

Most work studying the impact of fiscal decentralization on the provision of public services has measured the latter by way of quantitative output indicators (for example, years of schooling or mortality rates) and the former based on aggregate decentralization indicators reflecting sub-central government spending or revenue as a percentage of total spending or revenue. In this article, we reconsider the link between fiscal decentralization and public service provision based on perception-based measures of the quality of public services as well as decentralization measures that disaggregate spending according to expenditure functions. Specifically, we examine the impact of decentralizing spending in the areas of education, health and social protection down to local (municipal) governments, on perceptions concerning the quality of public services, across a panel of 30 European countries over the period 1996–2015. We find that decentralizing education and social protection spending improves the perceived quality of public services while decentralizing health expenditure undermines quality. Our empirical results are robust to the introduction of a range of potentially important covariates including measures that reflect on the degree of autonomy enjoyed by local authorities.

Suggested Citation

  • Andreas P. Kyriacou & Oriol Roca-Sagalés, 2019. "Local Decentralization and the Quality of Public Services in Europe," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(2), pages 755-776, September.
    • Handle: RePEc:spr:soinre:v:145:y:2019:i:2:d:10.1007_s11205-019-02113-z
    DOI: 10.1007/s11205-019-02113-z
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    Cited by:

    1. Ryota Nakatani & Qianqian Zhang & Isaura Garcia Valdes, 2022. "Fiscal Decentralization Improves Social Outcomes When Countries Have Good Governance," IMF Working Papers 2022/111, International Monetary Fund.
    2. Ronald Miranda‐Lescano & Leonel Muinelo‐Gallo & Oriol Roca‐Sagalés, 2023. "Human development and decentralization: The importance of public health expenditure," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(1), pages 191-219, March.
    3. Nakatani, Ryota & Zhang, Qianqian & Garcia Valdes, Isaura, 2023. "Health Expenditure Decentralization and Health Outcomes: The Importance of Governance," MPRA Paper 118062, University Library of Munich, Germany.
    4. Kyriacou, Andreas & Roca-Sagalés, Oriol, 2023. "Fiscal Decentralization and Health Care Access and Quality: Evidence from Local Governments Around the World," MPRA Paper 116860, University Library of Munich, Germany.
    5. Ryota Nakatani & Qianqian Zhang & Isaura Garcia Valdes, 2024. "Health Expenditure Decentralization and Health Outcomes: The Importance of Governance," Publius: The Journal of Federalism, CSF Associates Inc., vol. 54(1), pages 59-87.

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    More about this item

    Keywords

    Fiscal decentralization; Public service provision; Government effectiveness; Education; Health; Social protection;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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