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Economics of devolution/decentralization in the UK: Some questions and answers

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  • Peter Mcgregor
  • Kim Swales

Abstract

McGregor P. G. and Swales K. (2005) Economics of devolution/decentralization in the UK: some questions and answers, Regional Studies 39 , 477-494. The paper explores the economic implications of the radical process of devolution, decentralization and delegation of decision-making and policy delivery initiated by the post-1997 UK Labour Government. It is argued that the economies of all the presently devolved regions ultimately suffer if the Barnett Formula is rigorously imposed. It is shown that the efficiency of devolving fiscal authority involves a balance of positive and negative elements (depending on wage bargaining and migration responses). It is then argued that delegation/devolution of regional economic development policies, while exploiting regional information advantages, neglects regional economic interdependence, so there are potential gains from greater cooperation/coordination.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Regional Studies.

Volume (Year): 39 (2005)
Issue (Month): 4 ()
Pages: 477-494

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Handle: RePEc:taf:regstd:v:39:y:2005:i:4:p:477-494

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Related research

Keywords: Economics of devolution; Decentralization; Fiscal federalism; Barnett Formula; Tartan tax; Regional economic development; Economie de la decentralisation; Decentralisation; Federalisme fiscal; Formule Barnett; Taxe ecossaise; Amenagement du territoire; Wirtschaftliche Seite der Machtubertragung; Dezentralisation; Finanzfoderalismus; Barnettsche Formel; Tartan tax; Regionalwirtschaftliche Entwicklung; Implicaciones economicas de la descentralizacion; Delegacion de poderes; Federalismo fiscal; Formula de Barnett; Impuesto Tartan; Desarrollo economico regional; JEL classifications: H1; H7; R1; R5;

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Cited by:
  1. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
  2. Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2011. "In search of the 'economic dividend' of devolution: Spatial disparities, spatial economic policy and decentralisation in the UK," Working Papers 2011-18, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
  3. Ronald MacDonald & Paul Hallwood, 2004. "The Economic Case for Fiscal Federalism in Scotland," Working papers 2004-42, University of Connecticut, Department of Economics.
  4. Libman, Alexander, 2009. "Essays on Asymmetric Federalism," MPRA Paper 21591, University Library of Munich, Germany.
  5. Kristinn Hermannsson & Katerina Lisenkova & Peter G McGregor & J Kim Swales, 2011. "Regional Impact Analyses and the Appropriate Treatment of Regional Budget Constraints under Devolution: An Application to the Impact of Scottish HEIs," ERSA conference papers ersa10p1595, European Regional Science Association.

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