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Devolution dynamics of Spanish local government

Author

Listed:
  • Emili Tortosa Ausina

    (Universitat Jaume I)

  • Diego Prior Jiménez

    (Universidad Autónoma de Barcelona)

  • María Teresa Balaguer-Coll

    (Universitat Jaume I)

Abstract

Over the last few years, there has been a devolutionary tendency in many developed and developingcountries. In this article we propose a methodology to decompose whether the benefits in terms ofefficiency derived from transfers of powers from higher to municipal levels of government (the¿economic dividend¿ of devolution) might increase over time. This methodology is based on linearprogramming approaches for efficiency measurement. We provide an application to Spanishmunicipalities, which have had to adapt to both the European Stability and Growth Pact as well as todomestic regulation seeking local governments¿ balanced budget. Results indicate that efficiencygains from enhanced decentralization have increased over time. However, the way through whichthese gains accrue differs across municipalities¿in some cases technical change is the maincomponent, whereas in others catching up dominates. Durante los últimos años ha habido una corriente hacia la descentralización de poderes desde laadministración central hacia capas más bajas de gobierno, tanto en países desarrollados como envías de desarrollo. En este artículo proponemos una metodología para determinar si los beneficiosen términos de eficiencia derivados de la transferencia de poderes a los municipios (el "dividendo económico" de la descentralización) podrían aumentar en el tiempo. La técnica está basada enenfoques de programación lineal para la medición de la eficiencia. Llevamos a cabo la aplicación alos municipios españoles, que han tenido que adaptarse tanto al Pacto de Estabilidad y Crecimiento europeo, así como a la Ley General de Estabilidad Presupuestaria. Los resultados indican que lasganancias de eficiencia derivadas de una mayor descentralización han aumentado en los últimosaños. Sin embargo, el modo en que estas se originan varía según municipios -en algunos casos es elcambio técnico el factor dominante, en otros han sido las ganancias de eficiencia-.

Suggested Citation

  • Emili Tortosa Ausina & Diego Prior Jiménez & María Teresa Balaguer-Coll, 2010. "Devolution dynamics of Spanish local government," Working Papers. Serie EC 2010-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasec:2010-01
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    More about this item

    Keywords

    análisis de la actividad; dinámica de la descentralización; eficiencia; gobierno local. activity analysis; decentralization dynamics; efficiency; local government.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D60 - Microeconomics - - Welfare Economics - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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