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Decentralised Provision Of Quasi-Private Goods: The Case Of Colombia

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Ana María Iregui ()

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Abstract

This paper quantifies the welfare effects of decentralisation in Colombia, using a multiregional CGE model. We investigate to what extent will the Colombian population be better off when goods such as health and education, are delivered locally as against centrally. A provision scheme based on the median voter is considered. According to the results, the provision of health and education by regional governments improves the welfare of the Colombian population as a whole, since regional governments provide goods and services in a way that better caters to local preferences. More importantly, these welfare gains vary from 1.3% to 2.3% of GDP, a substantial magnitude especially when compared with the efficiency gains associated to the tax reforms of the early nineties.

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File URL: http://www.banrep.gov.co/docum/ftp/borra203.pdf
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Paper provided by BANCO DE LA REPÚBLICA in its series BORRADORES DE ECONOMIA with number 002251.

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Length: 35
Date of creation: 31 Mar 2002
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Handle: RePEc:col:000094:002251

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Epple, Dennis & Romano, Richard E, 1996. "Public Provision of Private Goods," Journal of Political Economy, University of Chicago Press, vol. 104(1), pages 57-84, February. [Downloadable!] (restricted)
  2. Besley, Timothy, 1991. " Welfare Improving User Charges for Publicly Provided Private Goods," Scandinavian Journal of Economics, Blackwell Publishing, vol. 93(4), pages 495-510.
  3. Blomquist, Soren & Christiansen, Vidar, 1998. "Topping Up or Opting Out? The Optimal Design of Public Provision Schemes," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 39(2), pages 399-411, May.
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  4. Besley, Timothy & Coate, Stephen, 1991. "Public Provision of Private Goods and the Redistribution of Income," American Economic Review, American Economic Association, vol. 81(4), pages 979-84, September. [Downloadable!] (restricted)
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  5. Munro, Alistair, 1991. "The optimal public provision of private goods," Journal of Public Economics, Elsevier, vol. 44(2), pages 239-261, March. [Downloadable!] (restricted)
  6. Lockwood, B., 1998. "Distributive Politics and the Benefits of Decentralization," The Warwick Economics Research Paper Series (TWERPS) 513, University of Warwick, Department of Economics. [Downloadable!]
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  7. Blomquist, Suren & Christiansen, Vidar, 1995. " Public Provision of Private Goods as a Redistributive Device in an Optimum Income Tax Model," Scandinavian Journal of Economics, Blackwell Publishing, vol. 97(4), pages 547-67, December.
  8. Thum, Claudio & Thum, Marcel, 2001. " Repeated Interaction and the Public Provision of Private Goods," Scandinavian Journal of Economics, Blackwell Publishing, vol. 103(4), pages 625-43, December. [Downloadable!] (restricted)
  9. Arrow, Kenneth J, 1971. "A Utilitarian Approach to the Concept of Equality in Public Expenditure," The Quarterly Journal of Economics, MIT Press, vol. 85(3), pages 409-15, August. [Downloadable!] (restricted)
  10. St-Hilaire, France & Whalley, John, 1987. "A Microconsistent Data Set for Canada for Use in Regional General Equilibrium Policy Analysis," Review of Income and Wealth, Blackwell Publishing, vol. 33(3), pages 327-43, September.
  11. Lockwood, B., 2000. "The Assignment of Powers in Federal and Unitary States," The Warwick Economics Research Paper Series (TWERPS) 569, University of Warwick, Department of Economics. [Downloadable!]
  12. Boadway, Robin & Roberts, Sandra & Shah, Anwar, 1994. "The reform of fiscal systems in developing and emerging market economies : a federalism perspective," Policy Research Working Paper Series 1259, The World Bank. [Downloadable!]
  13. Boadway, Robin W, 1974. "The Welfare Foundations of Cost-Benefit Analysis," Economic Journal, Royal Economic Society, vol. 84(336), pages 926-39, December. [Downloadable!] (restricted)
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  1. Eduardo A. Haddad & Jaime Bonet & Geoffrey. J.D.Hewings & Fernando S Perobelli, . "Spatial Aspects of Trade Liberalization in Colombia: A General Equilibrium Approach," Borradores de Economia 515, Banco de la Republica de Colombia. [Downloadable!]
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