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The effect of decentralization of government power on the character of public goods provision

Author

Listed:
  • Olga Marut

    (University of Warsaw, Faculty of Economic Sciences)

  • Jacek Lewkowicz

    (University of Warsaw, Faculty of Economic Sciences)

Abstract

What are the institutional drivers of public goods provision? What do we know about the impact of concentration of power on their distribution? The current literature proves the relevance of the allocation of public goods, mostly in the context of economic and social progress. A growing number of empirical studies is focused primarily on public policies that may matter in this context. However, we still know relatively little about institutional factors that may affect public goods provision. In this article we apply econometric and machine learning tools to verify the importance of governmental power decentralization for distribution of public goods. The obtained output implies that indeed concentration of power impacts public goods provision and the results are robust across various quantitative methods. Our conclusions may be of practical relevance also for policymakers.

Suggested Citation

  • Olga Marut & Jacek Lewkowicz, 2022. "The effect of decentralization of government power on the character of public goods provision," Working Papers 2022-11, Faculty of Economic Sciences, University of Warsaw.
    • Handle: RePEc:war:wpaper:2022-11
    as

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    File URL: https://www.wne.uw.edu.pl/download_file/1701/0
    File Function: First version, 2022
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    References listed on IDEAS

    as
    1. Junaid Ahmad & Shantayanan Devarajan & Stuti Khemani & Shekhar Shah, 2006. "Decentralization and Service Delivery," Chapters, in: Ehtisham Ahmad & Giorgio Brosio (ed.), Handbook of Fiscal Federalism, chapter 10, Edward Elgar Publishing.
    2. Belletti, Giovanni & Marescotti, Andrea & Touzard, Jean-Marc, 2017. "Geographical Indications, Public Goods, and Sustainable Development: The Roles of Actors’ Strategies and Public Policies," World Development, Elsevier, vol. 98(C), pages 45-57.
    3. Shah, Anwar, 2005. "Fiscal decentralization and fiscal performance," Policy Research Working Paper Series 3786, The World Bank.
    4. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
    5. Alberto Alesina & Eliana La Ferrara, 2003. "Ethnic Diversity and Economic Performance," Harvard Institute of Economic Research Working Papers 2028, Harvard - Institute of Economic Research.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    public goods; power decentralization; politics; institutional economics; political economy;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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