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Is fiscal decentralization good for your health? Evidence from a panel of OECD countries

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  • Jiménez-Rubio, D;

Abstract

In this study I use improved data of fiscal decentralization to re-examine the hypothesis that shifts towards more fiscal decentralization would be accompanied by improvements in population health on a panel of 19 OECD countries. The advantage of the new measure of decentralization is that it reflects better than previous measures the existence of autonomy in the decision making authority of lower tiers of government, a crucial issue in the decentralization process. The results based on panel data estimation techniques robust to heteroskedasticity and autocorrelation show that fiscal decentralization has a substantial and positive effect on health outcomes over the period studied. However, I find that conventional measures of decentralization tend to over-estimate the magnitude of the effect.

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Bibliographic Info

Paper provided by HEDG, c/o Department of Economics, University of York in its series Health, Econometrics and Data Group (HEDG) Working Papers with number 10/30.

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Date of creation: Nov 2010
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Handle: RePEc:yor:hectdg:10/30

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Keywords: Fiscal decentralization; health outcomes; OECD countries; panel data;

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