Centralizing Tendencies in the Public Sector in Germany
AbstractThis paper investigates the long-term trend and the underlying determinants of public sector centralization in Germany from 1871 until today. The institutional and the quantitative review of the German history provides no conclusive evidence for a continuous process of government centralization as suggested by Popitz' "law", but rather for some distinct developments caused by the effects of wars and regime changes. Accordingly, whereas the role of the central government increased continuously at the expense of the state governments untilWorldWar II, after 1950 the state level regained importance. An empirical analysis for the period 1950 to 2001 reveals a signidicant decentralizing effect of per capita income growth, but provides no clear evidence for a causal relationship between economic and European integration and fiscal decentralization in the case of Germany. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 05-46.
Date of creation: 2005
Date of revision:
Public Sector Centralization; Popitz' Law; Determinants of Centralization; Germany;
Find related papers by JEL classification:
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
- F15 - International Economics - - Trade - - - Economic Integration
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