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Fiscal federalism and government size in transition economies: the case of Moldova

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  • Luiz De Mello

    (International Monetary Fund, Washington DC, USA)

Abstract

This paper examines the relationship between fiscal decentralization-the assignment of revenue sources and expenditure functions across government levels-and government size in Moldova. The empirical results-based on data for a cross-section of Moldovan sub-national government in 1998-suggest that fiscal decentralization is associated with larger sub-national governments and that the country's revenue-sharing system imposes a constraint on sub-national revenue mobilization capacity. Copyright © 2001 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/jid.763
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 13 (2001)
Issue (Month): 2 ()
Pages: 255-268

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Handle: RePEc:wly:jintdv:v:13:y:2001:i:2:p:255-268

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Web page: http://www3.interscience.wiley.com/journal/5102/home

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  1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
  2. Dollery, Brian E & Worthington, Andrew C, 1996. " The Empirical Analysis of Fiscal Illusion," Journal of Economic Surveys, Wiley Blackwell, vol. 10(3), pages 261-97, September.
  3. Zax, Jeffrey S, 1989. "Is There a Leviathan in Your Neighborhood?," American Economic Review, American Economic Association, vol. 79(3), pages 560-67, June.
  4. Cullis, J. G. & Jones, P. R. & Morrissey, O., 1993. "The charge of the tax brigade : A case study of government failure and tax reforms," European Journal of Political Economy, Elsevier, vol. 9(3), pages 407-425, August.
  5. Grossman, Philip J & West, Edwin G, 1994. " Federalism and the Growth of Government Revisited," Public Choice, Springer, vol. 79(1-2), pages 19-32, April.
  6. Oates, Wallace E, 1985. "Searching for Leviathan: An Empirical Study," American Economic Review, American Economic Association, vol. 75(4), pages 748-57, September.
  7. John Joseph Wallis & Wallace E. Oates, 1988. "Decentralization in the Public Sector: An Empirical Study of State and Local Government," NBER Chapters, in: Fiscal Federalism: Quantitative Studies, pages 5-32 National Bureau of Economic Research, Inc.
  8. Ashworth, John & Gemmell, Norman, 1996. " Local Governments' Monopoly Power and Local Tax Reform: Theory and Evidence from the U.K," Public Choice, Springer, vol. 89(3-4), pages 393-417, December.
  9. Brennan,Geoffrey & Buchanan,James M., 1980. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521233293.
  10. Inman, Robert P. & Rubinfeld, Daniel L., 1996. "Designing tax policy in federalist economies: An overview," Journal of Public Economics, Elsevier, vol. 60(3), pages 307-334, June.
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Cited by:
  1. Paolo Liberati & Agnese Sacchi, 2010. "Tax Decentralisation and local Government size," Departmental Working Papers of Economics - University 'Roma Tre' 0123, Department of Economics - University Roma Tre.

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