IDEAS home Printed from https://ideas.repec.org/a/bla/kyklos/v73y2020i2p253-290.html
   My bibliography  Save this article

Determinants of Public‐Sector Efficiency: Decentralization and Fiscal Rules

Author

Listed:
  • Michael Christl
  • Monika Köppl‐Turyna
  • Dénes Kucsera

Abstract

This paper investigates the determinants of public‐sector efficiency, in particular the role of fiscal decentralization and fiscal rules. For 23 European countries over the period from 1995 to 2015, we construct a measure of public‐sector performance consisting of nine distinct indices for each area of public policy, such as administration, health education, economic performance, security and infrastructure. We use several efficiency techniques, e.g., free disposal hull and order‐m, and investigate input‐and output‐oriented efficiency in the public sector. We analyse in depth the impact of fiscal decentralization and fiscal rules on public‐sector efficiency. We conclude that, whereas decentralization fosters efficiency, fiscal rules have no effect. Moreover, fiscal rules, when combined with decentralization, may harm efficiency, which is consistent with the ratchet effect.

Suggested Citation

  • Michael Christl & Monika Köppl‐Turyna & Dénes Kucsera, 2020. "Determinants of Public‐Sector Efficiency: Decentralization and Fiscal Rules," Kyklos, Wiley Blackwell, vol. 73(2), pages 253-290, May.
    • Handle: RePEc:bla:kyklos:v:73:y:2020:i:2:p:253-290
    DOI: 10.1111/kykl.12224
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/kykl.12224
    Download Restriction: no
    File URL: https://libkey.io/10.1111/kykl.12224?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brändle, Thomas & Elsener, Marc, 2023. "Do fiscal rules matter? A survey on recent evidence," Working papers 2023/07, Faculty of Business and Economics - University of Basel.
    2. Thomas Brändle & Marc Elsener, 2024. "Do fiscal rules matter? A survey of recent evidence," Swiss Journal of Economics and Statistics, Springer;Swiss Society of Economics and Statistics, vol. 160(1), pages 1-38, December.
    3. Hans Pitlik & Margit Schratzenstaller, 2022. "Kurzexpertise zu Abgabensystem und Ausgabenstrukturen im internationalen Vergleich. Ausgangssituation und Reformbedarf," WIFO Studies, WIFO, number 67988, March.
    4. Pedro Jorge Holanda Figueiredo Alves & Jevuks Matheus Araujo & Ana Karolina Acris Melo, 2023. "Fiscal decentralization and economic growth: evidence from Brazilian states," Public Sector Economics, Institute of Public Finance, vol. 47(2), pages 255-280.
    5. Ulloa-Suárez, Carolina, 2023. "Determinants of compliance with fiscal rules: Misplaced efforts or hidden motivations?," European Journal of Political Economy, Elsevier, vol. 78(C).
    6. Carolina Ulloa-Suárez, 2023. "Determinants of compliance with fiscal rules: Misplaced efforts or hidden motivations?," Post-Print hal-04171829, HAL.
    7. Herrero-Alcalde, Ana & Martín-Román, Javier & Tránchez-Martín, José Manuel & Moral-Arce, Ignacio, 2024. "Fiscal rules to the test: The impact of the Spanish expenditure rule," European Journal of Political Economy, Elsevier, vol. 81(C).
    8. Köppl-Turyna, Monika & Bittó, Virág & Graf, Nikolaus, 2022. "Effizienzpotenziale in der Kinderbetreuung in Österreich," Policy Notes 50, EcoAustria – Institute for Economic Research.
    9. Xu Zhang & Tianchu Feng & Chengjun Wang & Chaozhu Li, 2023. "Local Fiscal Pressure and Public Health: Evidence from China," IJERPH, MDPI, vol. 20(6), pages 1-17, March.
    10. Mara, Eugenia Ramona & Maran, Raluca, 2024. "Are fiscal rules efficient on public debt restraint in the presence of shadow economy?," Finance Research Letters, Elsevier, vol. 64(C).
    11. del Castillo, Ernesto & Cabral, René, 2024. "Subnational public debt sustainability in Mexico: Is the new fiscal rule working?," European Journal of Political Economy, Elsevier, vol. 82(C).
    12. Köppl-Turyna, Monika & Strohner, Ludwig, 2023. "Reformoptionen des österreichischen Finanzausgleichs," Policy Notes 52, EcoAustria – Institute for Economic Research.
    13. Ryota Nakatani & Qianqian Zhang & Isaura Garcia Valdes, 2024. "Health Expenditure Decentralization and Health Outcomes: The Importance of Governance," Publius: The Journal of Federalism, CSF Associates Inc., vol. 54(1), pages 59-87.
    14. López-Herrera, Carmen & Cordero, José M. & Pedraja-Chaparro, Francisco & Polo, Cristina, 2023. "Fiscal rules and their influence on public sector efficiency," MPRA Paper 119018, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:kyklos:v:73:y:2020:i:2:p:253-290. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0023-5962 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.