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Decentralised provision of quasi-private goods: The case of Colombia

  • Iregui, Ana Maria

This paper quantifies the welfare effects of decentralisation in Colombia, using a multiregional CGE model.We investigate to what extent will the Colombian Population be better off when goods such as health and education, are delivered locally as against centrally. A provision scheme based on the median voter is consided.According to the results, the provision of health and education by regional governments improves the welfare of the Colombian Population as a whole, since regional governments provide goods and services in a way that better caters to local preferences. More importantly,these welfare gains vary from 1.3% to 2.3% of GDP, a substantial magnitude especially when compared with the efficiency gains associated to the tax reforms of the early nineties.

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Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 22 (2005)
Issue (Month): 4 (July)
Pages: 683-706

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Handle: RePEc:eee:ecmode:v:22:y:2005:i:4:p:683-706
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