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Fiscal autonomy and quality of governance in OECD countries

Author

Listed:
  • David Bartolini

    () (Department of Economics and Social Sciences Polytechnic University of Marche)

  • Raffaella Santolini

    () (Department of Economics and Social Sciences Polytechnic University of Marche)

Abstract

Using a panel of 24 OECD countries, we study the link between the autonomy of sub-national governments and the quality of governance of a country. The results show that fiscal autonomy worsens citizens' perceptions of governance quality. In particular, the delegation of policy responsibilities to the regional level produces a robust negative effect on quality.

Suggested Citation

  • David Bartolini & Raffaella Santolini, 2013. "Fiscal autonomy and quality of governance in OECD countries," Economics Bulletin, AccessEcon, vol. 33(1), pages 706-713.
  • Handle: RePEc:ebl:ecbull:eb-13-00033
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I1-P67.pdf
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    References listed on IDEAS

    as
    1. Enikolopov, Ruben & Zhuravskaya, Ekaterina, 2007. "Decentralization and political institutions," Journal of Public Economics, Elsevier, vol. 91(11-12), pages 2261-2290, December.
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    3. Plümper, Thomas & Troeger, Vera E., 2007. "Efficient Estimation of Time-Invariant and Rarely Changing Variables in Finite Sample Panel Analyses with Unit Fixed Effects," Political Analysis, Cambridge University Press, vol. 15(02), pages 124-139, March.
    4. Plümper, Thomas & Troeger, Vera E., 2011. "Fixed-Effects Vector Decomposition: Properties, Reliability, and Instruments," Political Analysis, Cambridge University Press, vol. 19(02), pages 147-164, March.
    5. Andreas P Kyriacou & Oriol Roca-Sagalés, 2011. "Fiscal and political decentralization and government quality," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 29(2), pages 204-223, April.
    6. Cai, Hongbin & Treisman, Daniel, 2004. "State corroding federalism," Journal of Public Economics, Elsevier, vol. 88(3-4), pages 819-843, March.
    7. Kyriacou, Andreas P. & Roca-Sagalés, Oriol, 2011. "Fiscal decentralization and government quality in the OECD," Economics Letters, Elsevier, vol. 111(3), pages 191-193, June.
    8. Seabright, Paul, 1996. "Accountability and decentralisation in government: An incomplete contracts model," European Economic Review, Elsevier, vol. 40(1), pages 61-89, January.
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    Cited by:

    1. repec:eee:ecosys:v:41:y:2017:i:1:p:68-85 is not listed on IDEAS
    2. Bartolini, David & Santolini, Raffaella, 2017. "Political institutions behind good governance," Economic Systems, Elsevier, vol. 41(1), pages 68-85.

    More about this item

    Keywords

    Fiscal autonomy; Quality of governance; Fixed-effects vector decomposition estimator; Panel data analysis;

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H1 - Public Economics - - Structure and Scope of Government

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