Local governments’ fiscal balance and privatization in transition countries
Several transition economies have undertaken fiscal decentralization reforms over the past two decades along with liberalization, privatization, and stabilization reforms. Theory predicts that decentralization may aggravate fiscal imbalances, unless the right incentives are in place to promote fiscal discipline. This paper uses a panel of 20 transition countries over 19 years to address a central question of fact: Did privatization help to promote local governmentsâ€™ fiscal discipline? The answer is clearly â€˜noâ€™ for privatization considered in isolation. However, privatization and subnational fiscal autonomy along with reforms to the banking system - restraining access to soft financing - may prove effective at improving fiscal balances among local governments.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 20 (2012)
Issue (Month): 4 (October)
|Contact details of provider:|| Postal: One Exchange Square, London EC2A 2JN|
Web page: http://www.blackwellpublishing.com/journal.asp?ref=0967-0750
More information through EDIRC
|Order Information:||Web: http://www.blackwellpublishing.com/subs.asp?ref=0967-0750|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Blundell, Richard & Bond, Stephen, 1998.
"Initial conditions and moment restrictions in dynamic panel data models,"
Journal of Econometrics,
Elsevier, vol. 87(1), pages 115-143, August.
- R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers W14&104., Economics Group, Nuffield College, University of Oxford.
- Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
- Richard Blundell & Steve Bond, 1995. "Initial conditions and moment restrictions in dynamic panel data models," IFS Working Papers W95/17, Institute for Fiscal Studies.
- Bilin Neyapti & Zafer Akin & Zeynep B. Cevik, 2011.
"Does Fiscal Decentralization Promote Fiscal Discipline?,"
1101, Department of Economics, Bilkent University.
- Zafer Akin & Zeynep B. Bulut-Cevik & Bilin Neyapti, 2016. "Does Fiscal Decentralization Promote Fiscal Discipline?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(3), pages 690-705, March.
- Bilin Neyapti & Nida Cakir, 2007. "Does Fiscal Decentralization Promote Fiscal Discipline?," Working Papers 0708, Department of Economics, Bilkent University.
- António Afonso & Luca Agnello & Davide Furceri, 2008.
"Fiscal Policy Responiveness, Persistence and Discretion,"
Working Papers Department of Economics
2008/50, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
- António Afonso & Luca Agnello & Davide Furceri, 2010. "Fiscal policy responsiveness, persistence, and discretion," Public Choice, Springer, vol. 145(3), pages 503-530, December.
- António Afonso & Luca Agnello & Davide Furceri, 2008. "Fiscal Policy Responsiveness, Persistence, and Discretion," OECD Economics Department Working Papers 659, OECD Publishing.
- Afonso, António & Agnello, Luca & Furceri, Davide, 2008. "Fiscal policy responsiveness, persistence and discretion," Working Paper Series 0954, European Central Bank.
- M. Dewatripont & E. Maskin, 1995. "Credit and Efficiency in Centralized and Decentralized Economies," Review of Economic Studies, Oxford University Press, vol. 62(4), pages 541-555.
- Crivelli, Ernesto & Staal, Klaas, 2006.
"Size and soft budget constraints,"
Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems
172, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Ernesto Crivelli & Klaas Staal, 2006. "Size and Soft Budget Constraints," CESifo Working Paper Series 1858, CESifo Group Munich.
- Ernesto Crivelli & Klaas Staal, 2006. "Size and Soft Budget Constraints," Working Papers 2006-13, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
- János Kornai, 2014.
"The soft budget constraint,"
Akadémiai Kiadó, Hungary, vol. 64(supplemen), pages 25-79, November.
- Mariano Tommasi & Pablo Sanguinetti, 2003.
"Intergovernmental Transfers and Fiscal Behavior: Insurance versus Aggregate Discipline,"
60, Universidad de San Andres, Departamento de Economia, revised Aug 2003.
- Sanguinetti, Pablo & Tommasi, Mariano, 2004. "Intergovernmental transfers and fiscal behavior insurance versus aggregate discipline," Journal of International Economics, Elsevier, vol. 62(1), pages 149-170, January.
- Estrin, Saul & Hanousek, Jan & Kocenda, Evzen & Svejnar, Jan, 2009.
"Effects of privatization and ownership in transition economies,"
Policy Research Working Paper Series
4811, The World Bank.
- Saul Estrin & Jan Hanousek & Evzen Kocenda & Jan Svejnar, 2009. "The Effects of Privatization and Ownership in Transition Economies," Journal of Economic Literature, American Economic Association, vol. 47(3), pages 699-728, September.
- Kornai, Janos, 2001. "Hardening the budget constraint: The experience of the post-socialist countries," European Economic Review, Elsevier, vol. 45(9), pages 1573-1599, October.
- J Alm & R M Buckley, 1994. "Decentralization, privatization, and the solvency of local governments in reforming economies: the case of Budapest," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 12(3), pages 333-346, June.
- Fabian Gouret, 2007.
"Privatization and output behavior during the transition: Methods matter!,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Gouret, Fabian, 2007. "Privatization and output behavior during the transition: Methods matter!," Journal of Comparative Economics, Elsevier, vol. 35(1), pages 3-34, March.
- Kornai, J, 1979. "Resource-Constrained versus Demand-Constrained Systems," Econometrica, Econometric Society, vol. 47(4), pages 801-19, July.
- Céline Bignebat & Fabian Gouret, 2008. "Determinants and consequences of soft budget constraints," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 16(3), pages 503-535, 07.
- Douglas Sutherland & Robert W. R. Price & Isabelle Joumard, 2005. "Fiscal Rules for Sub-central Governments: Design and Impact," OECD Economics Department Working Papers 465, OECD Publishing.
When requesting a correction, please mention this item's handle: RePEc:bla:etrans:v:20:y:2012:i:4:p:677-703. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.