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

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  • Iregui, Ana Maria

Abstract

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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  • Iregui, Ana Maria, 2005. "Decentralised provision of quasi-private goods: The case of Colombia," Economic Modelling, Elsevier, vol. 22(4), pages 683-706, July.
  • Handle: RePEc:eee:ecmode:v:22:y:2005:i:4:p:683-706
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    1. E.A. Haddad & J. Bonet & G.J.D. Hewings & F.S. Perobelli, 2009. "Spatial aspects of trade liberalization in Colombia: A general equilibrium approach," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 699-732, November.
    2. Jaime Bonet & Eduardo A. Haddad & Geoffrey J.D. Hewings & Fernando S. Perobelli, 2008. "Efectos regionales de una mayor liberación comercial en Colombia: Una estimación con el Modelo CEER," Documentos de Trabajo Sobre Economía Regional y Urbana 005004, Banco de la República - Economía Regional.
    3. Jesús Otero & Luis Fernando Gamboa & Andrés García-Suaza, 2011. "An analysis of the relationship between wages in the public and private sector in colombia: a panel data approach," Documentos de Trabajo 008738, Universidad del Rosario.
    4. Mardones D., Cristián, 2012. "Chile: building a computable general equilibrium model with an application to the Bío Bío region," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.

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    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods

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