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Devolution dynamics of Spanish local government

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Author Info

  • 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-.

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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2010-01.

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Length: 38 pages
Date of creation: Jan 2010
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2010-01

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Keywords: análisis de la actividad; dinámica de la descentralización; eficiencia; gobierno local. activity analysis; decentralization dynamics; efficiency; local government.;

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References

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  1. Victor M. Giménez & Diego Prior, 2007. "Long- and Short-Term Cost Efficiency Frontier Evaluation: Evidence from Spanish Local Governments," Fiscal Studies, Institute for Fiscal Studies, vol. 28(1), pages 121-139, 03.
  2. Jorge Martinez-Vazquez & Robert McNab, 2001. "Fiscal Decentralization and Economic Growth," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0101, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  3. De Borger, Bruno & Kerstens, Kristiaan, 1996. "Cost efficiency of Belgian local governments: A comparative analysis of FDH, DEA, and econometric approaches," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 145-170, April.
  4. Emili Tortosa Ausina & Diego Prior & María Teresa Balaguer-Coll, 2006. "Decentralization And Effiency In Spanish Local Goverment," Working Papers. Serie EC 2006-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  5. Ulrich Thießen, 2003. "Fiscal Decentralisation and Economic Growth in High-Income OECD Countries," Fiscal Studies, Institute for Fiscal Studies, vol. 24(3), pages 237-274, September.
  6. Pilar Beneito López & Amparo Sanchis Llopis & María Engracia Rochina Barrachina, 2009. "The role of learning in innovation: in-house versus externally contracted R&D experience," Working Papers. Serie EC 2009-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  7. 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).
  8. Balaguer-Coll, Maria Teresa & Prior, Diego & Tortosa-Ausina, Emili, 2007. "On the determinants of local government performance: A two-stage nonparametric approach," European Economic Review, Elsevier, vol. 51(2), pages 425-451, February.
  9. Francisco Requena & Guadalupe Serrano & Joan Martín Montaner, 2009. "The effects of immigration on the productive structure of Spanish regions," Working Papers. Serie EC 2009-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  10. De Borger, B, et al, 1994. " Explaining Differences in Productive Efficiency: An Application to Belgian Municipalities," Public Choice, Springer, vol. 80(3-4), pages 339-58, September.
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Citations

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Cited by:
  1. Ana María Sabater & Araceli Mora & Beatriz García Osma, 2010. "Strategic accounting choice around firm level labour negotiations," Working Papers. Serie EC 2010-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  2. Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2010. "In Search of the Economic Dividend of Devolution: Spatial Disparities, Spatial Economic Policy and Decentralisation in the UK," SERC Discussion Papers 0062, Spatial Economics Research Centre, LSE.
  3. Francisco Mas Ruiz & Juan Luis Nicolau Gonzálbez, 2010. "Contribution of individual to collective brands," Working Papers. Serie EC 2010-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  4. Thieme, Claudio & Prior, Diego & Tortosa-Ausina, Emili, 2013. "A multilevel decomposition of school performance using robust nonparametric frontier techniques," Economics of Education Review, Elsevier, vol. 32(C), pages 104-121.
  5. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, . "Devolution Dynamics of Spanish Local Government," Working Paper 201001, Department of Business Economics, Universitat Autonoma de Barcelona.
  6. Ginés Hernández Cánovas & María Camino Ramón Llorens, 2010. "Venture capitalists in Spain: cluster analysis of criteria used in the screening process," Working Papers. Serie EC 2010-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  7. Ángel Pardo Tornero & María Dolores Furió Ortega, 2010. "Politics and elections at the Spanish stock exchange," Working Papers. Serie EC 2010-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  8. Asier Minondo & Francisco Requena Silvente, 2010. "Welfare gains from imported varieties in Spain, 1988-2006," Working Papers. Serie EC 2010-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  9. Inés Küster Boluda & Natalia Vila López & Vicente Castillo, 2010. "Efectos de los videojuegos en las marcas emplazadas: la transmisión de imagen a través de las emociones," Working Papers. Serie EC 2010-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  10. Elena Pardo & Inés Küster Boluda & Torpong Suemanotham, 2010. "Product placement in video games as a marketing strategy: an attempt to analysis in Disney company," Working Papers. Serie EC 2010-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  11. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2013. "On the determinants of local government debt: Does one size fit all?," Working Papers 2013/16, Economics Department, Universitat Jaume I, Castellón (Spain).
  12. Nikolaos Georgantzis & Aitor Ciarreta & Carlos Gutiérrez-Hita, 2010. "Renewable sources, technology mix, and competiton in liberalized electricity markets: the case of Spain," Working Papers. Serie EC 2010-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  13. M. Teresa Sanchis Llopis & Vicente Esteve Garcia & Antonio Cubel, 2010. "International technology diffusion through patents during the second half of the XXth century," Working Papers. Serie EC 2010-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  14. Emili Tortosa Ausina & Diego Prior Jiménez & María Teresa Balaguer-Coll, 2010. "Output complexity, environmental conditions, and the efficiency of municipalities: a robust metafrontier approach," Working Papers. Serie EC 2010-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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