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Partial decentralization and its influence on local governments’ spending policy. An analysis of spending for teachers and other resources needed for schools

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  • Agnieszka Kopańska

    (Faculty of Economic Sciences, University of Warsaw)

Abstract

The aim of the paper is to analyze how limits in revenue and spending autonomy of sub-sovereign governments influence these governments’ decisions. The analysis is focused on Polish towns current spending for schools in years 2002-2013. It presents that revenue autonomy increases towns spending, however the results are different for various categories of expenditure. The expenses were disaggregated for spending for teachers and other schools’ recourses. The first category is the most important in schools’ budget and in Poland is strongly (but not completely) determined by central regulations. The second category is more decentralized. It is presented that less decentralized spendings are unified among towns and are higher in more revenue’ autonomous towns, the spending autonomy doesn’t influence them. In case of more decentralized tasks, differences among municipalities are important, expenditure is influenced by spending autonomy, not by revenue autonomy. These results show that less autonomous tasks crowd out others.

Suggested Citation

  • Agnieszka Kopańska, 2016. "Partial decentralization and its influence on local governments’ spending policy. An analysis of spending for teachers and other resources needed for schools," Working Papers 2016-38, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2016-38
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    File URL: http://www.wne.uw.edu.pl/index.php/download_file/3275/
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    Cited by:

    1. Kopańska Agnieszka, 2018. "Partial Fiscal Decentralization and Local Government Spending Policy," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 14(3), pages 21-31, September.

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    More about this item

    Keywords

    partial decentralization; spending and revenue autonomy; local government spending policy;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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