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Fiscal Decentralisation and Economic Growth: A Bayesian Model Averaging Approach

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Abstract

This article re-examines the relationship between fiscal decentralisation and economic growth by employing Bayesian model averaging (BMA). BMA enables the consideration of a range of measures of fiscal decentralisation and allows the incorporation of model uncertainty into the empirical methodology. Posterior coefficient estimates suggest that not straightforward relationship exists between fiscal decentralisation and economic growth based on time-series data for Australia.

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  • Philip Bodman & Kelly-Ana Heaton & Andrew Hodge, "undated". "Fiscal Decentralisation and Economic Growth: A Bayesian Model Averaging Approach," MRG Discussion Paper Series 3509, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uqmrg6:35
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    File URL: https://economics.uq.edu.au/files/47086/3509.pdf
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    Cited by:

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    3. K. L. Devkota, 2014. "Impact of Fiscal Decentralization on Economic Growth in the Districts of Nepal," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1420, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    4. Tetyana Paliychuk & Serhiy Petrukha & Nataliia Alekseienko, 2020. "Financial Equalization in the Conditions of Reform of the Public Finance Management System," Oblik i finansi, Institute of Accounting and Finance, issue 2, pages 81-92, June.
    5. Yushkov, Andrey, 2015. "Fiscal decentralization and regional economic growth: Theory, empirics, and the Russian experience," Russian Journal of Economics, Elsevier, vol. 1(4), pages 404-418.

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