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Fiscal Performance, Institutional Design and Decentralization in European Union Countries

Author

Listed:
  • Mr. Luc Eyraud
  • Ms. Anita Tuladhar
  • Mr. Julio Escolano
  • Ms. Marialuz Moreno Badia
  • Ms. Juliane Sarnes

Abstract

This paper analyzes the impact of decentralization on overall fiscal performance in the European Union, taking into account fiscal institutional arrangements. We find that spending decentralization has been associated with sizably better fiscal performance, especially when transfer dependency of subnational governments is low. However, subnational fiscal rules do not seem to be associated with better performance.

Suggested Citation

  • Mr. Luc Eyraud & Ms. Anita Tuladhar & Mr. Julio Escolano & Ms. Marialuz Moreno Badia & Ms. Juliane Sarnes, 2012. "Fiscal Performance, Institutional Design and Decentralization in European Union Countries," IMF Working Papers 2012/045, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2012/045
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    References listed on IDEAS

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