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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, University of Chicago Press, vol. 64, pages 416.
  2. Winer, Stanley L, 1983. "Some Evidence on the Effect of the Separation of Spending and Taxing Decisions," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 91(1), pages 126-40, February.
  3. Brennan,Geoffrey & Buchanan,James M., 1980. "The Power to Tax," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521233293.
  4. Grossman, Philip J & West, Edwin G, 1994. " Federalism and the Growth of Government Revisited," Public Choice, Springer, Springer, vol. 79(1-2), pages 19-32, April.
  5. John Joseph Wallis & Wallace E. Oates, 1988. "Decentralization in the Public Sector: An Empirical Study of State and Local Government," NBER Chapters, National Bureau of Economic Research, Inc, in: Fiscal Federalism: Quantitative Studies, pages 5-32 National Bureau of Economic Research, Inc.
  6. Ashworth, John & Gemmell, Norman, 1996. " Local Governments' Monopoly Power and Local Tax Reform: Theory and Evidence from the U.K," Public Choice, Springer, Springer, vol. 89(3-4), pages 393-417, December.
  7. Oates, Wallace E, 1985. "Searching for Leviathan: An Empirical Study," American Economic Review, American Economic Association, American Economic Association, vol. 75(4), pages 748-57, September.
  8. 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, Elsevier, vol. 9(3), pages 407-425, August.
  9. Inman, Robert P. & Rubinfeld, Daniel L., 1996. "Designing tax policy in federalist economies: An overview," Journal of Public Economics, Elsevier, Elsevier, vol. 60(3), pages 307-334, June.
  10. Dollery, Brian E & Worthington, Andrew C, 1996. " The Empirical Analysis of Fiscal Illusion," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 10(3), pages 261-97, September.
  11. Zax, Jeffrey S, 1989. "Is There a Leviathan in Your Neighborhood?," American Economic Review, American Economic Association, American Economic Association, vol. 79(3), pages 560-67, June.
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Cited by:
  1. Feld, Lars P., 2014. "James Buchanan's theory of federalism: From fiscal equity to the ideal political order," Freiburg Discussion Papers on Constitutional Economics 14/06, Walter Eucken Institut e.V..
  2. Jungbu Kim, 2010. "Political Institutions and Public R&D Expenditures in Democratic Countries," Working Papers, Research Institute, International University of Japan EMS_2010_16, Research Institute, International University of Japan.
  3. David Cantarero & Patricio Perez, 2012. "Decentralization and regional government size in Spain," Portuguese Economic Journal, Springer, Springer, vol. 11(3), pages 211-237, December.
  4. Paolo Liberati & Agnese Sacchi, 2013. "Tax decentralization and local government size," Public Choice, Springer, Springer, vol. 157(1), pages 183-205, October.

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