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On decentralization and life satisfaction

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  • Bjørnskov, Christian
  • Drehe, Axel
  • Fischer, Justina A.V.

Abstract

We empirically analyze the impact of fiscal and political decentralization on subjective well-being in a cross-section of 60,000 individuals from 66 countries. More spending or revenue decentralization raises well-being while greater local autonomy is beneficial only via government consumption spending.

Suggested Citation

  • Bjørnskov, Christian & Drehe, Axel & Fischer, Justina A.V., 2008. "On decentralization and life satisfaction," Economics Letters, Elsevier, vol. 99(1), pages 147-151, April.
    • Handle: RePEc:eee:ecolet:v:99:y:2008:i:1:p:147-151
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    References listed on IDEAS

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    1. Besley, Timothy & Case, Anne, 1995. "Incumbent Behavior: Vote-Seeking, Tax-Setting, and Yardstick Competition," American Economic Review, American Economic Association, vol. 85(1), pages 25-45, March.
    2. Kotsogiannis, Christos & Schwager, Robert, 2006. "On the incentives to experiment in federations," Journal of Urban Economics, Elsevier, vol. 60(3), pages 484-497, November.
    3. Prud'homme, Remy, 1995. "The Dangers of Decentralization," The World Bank Research Observer, World Bank, vol. 10(2), pages 201-220, August.
    4. Christian Bjørnskov & Axel Dreher & Justina Fischer, 2007. "The bigger the better? Evidence of the effect of government size on life satisfaction around the world," Public Choice, Springer, vol. 130(3), pages 267-292, March.
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