Vertical fiscal imbalances and fiscal performance in advanced economies
The paper examines empirically, using a measure of “vertical fiscal imbalances” (VFI), the relationship between overall fiscal performance and the financing structure of subnational governments. It presents stylized facts regarding the size, evolution, and components of measured VFI using data from 28 OECD countries. On average, the general government fiscal balance is found to improve by 1 percent of GDP for each 10 percentage point reduction in VFI.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Timothy Goodspeed, 2002. "Bailouts in a Federation," International Tax and Public Finance, Springer, vol. 9(4), pages 409-421, August.
- Robin Boadway & Jean-François Tremblay, 2006. "A Theory of Fiscal Imbalance," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 62(1), pages 1-27, March.
- Robin Boadway & Jean-Francois Tremblay, 2005.
"A Theory of Vertical Fiscal Imbalance,"
2006-04, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
- Rodden, Jonathan, 2003. "Reviving Leviathan: Fiscal Federalism and the Growth of Government," International Organization, Cambridge University Press, vol. 57(04), pages 695-729, September.
- Francesca Fornasari & Steven B. Webb & Heng-fu Zou, 1999.
"The Macroeconomic Impact of Decentralized Spending and Deficits: International Evidence,"
CEMA Working Papers
28, China Economics and Management Academy, Central University of Finance and Economics, revised Oct 2000.
- Francesca Fornasari & Steven B. Webb & Heng-fu Zou, 2000. "The Macroeconomic Impact of Decentralized Spending and Deficits: International Evidence," Annals of Economics and Finance, Society for AEF, vol. 1(2), pages 403-433, November.
- Jürgen Von Hagen & Massimo Bordignon & Bhajan S. Grewal & Per Peterson & Helmut Seitz & Matz Dahlberg, 2000. "Subnational Government Bailouts in OECD Countries: Four Case Studies," Research Department Publications 3100, Inter-American Development Bank, Research Department.
- Wildasin, David E., 1997.
"Externalities and bailouts : hard and soft budget constraints in intergovernmental fiscal relations,"
Policy Research Working Paper Series
1843, The World Bank.
- David E. Wildasin, 2001. "Externalities and Bailouts: Hard and Soft Budget Constraints in Intergovernmental Fiscal Relations," Public Economics 0112002, EconWPA.
- World Bank, 2011. "World Development Indicators 2011," World Bank Publications, The World Bank, number 2315.
- Jing Jin & Heng-fu Zou, 2000.
"How does fiscal decentralization affect aggregate, national, and subnational government size?,"
CEMA Working Papers
72, China Economics and Management Academy, Central University of Finance and Economics.
- Jin, Jing & Zou, Heng-fu, 2002. "How does fiscal decentralization affect aggregate, national, and subnational government size?," Journal of Urban Economics, Elsevier, vol. 52(2), pages 270-293, September.
- Baskaran, Thushyanthan, 2010.
"On the Link Between Fiscal Decentralization and Public Debt in OECD Countries,"
21599, University Library of Munich, Germany.
- Thushyanthan Baskaran, 2010. "On the link between fiscal decentralization and public debt in OECD countries," Public Choice, Springer, vol. 145(3), pages 351-378, December.
- Wallace E. Oates, 2006.
"On the Theory and Practice of Fiscal Decentralization,"
2006-05, University of Kentucky, Institute for Federalism and Intergovernmental Relations.
- Wallace E. Oates, 2007. "On the Theory and Practise of Fiscal Decentralization," Working Papers 0701, CREI Università degli Studi Roma Tre, revised Jan 2007.
- Fredrik Carlsen, 1998. "Central Regulation of Local Authorities," Public Finance Review, , vol. 26(4), pages 304-326, July.
- Bird, Richard M., 2010.
"Subnational taxation in developing countries : a review of the literature,"
Policy Research Working Paper Series
5450, The World Bank.
- Richard M. Bird, 2011. "Subnational Taxation In Developing Countries: A Review Of The Literature," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 2(01), pages 139-161.
- Julia Darby & V. Anton Muscatelli & Graeme Roy, 2004.
"Fiscal Consolidation And Decentralisation: A Tale Of Two Tiers,"
2004_2, Business School - Economics, University of Glasgow.
- Julia Darby & V. Anton Muscatelli & Graeme Roy, 2005. "Fiscal consolidation and decentralisation: a tale of two tiers," Fiscal Studies, Institute for Fiscal Studies, vol. 26(2), pages 169-195, June.
- Velasco, Andres, 2000. "Debts and deficits with fragmented fiscal policymaking," Journal of Public Economics, Elsevier, vol. 76(1), pages 105-125, April.
- Richard Bird & Andrey Tarasov, 2002.
"Closing the Gap: Fiscal Imbalaces and Intergovernmental Transfers in Developed Federations,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper0202, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Richard M Bird & Andrey V Tarasov, 2004. "Closing the gap: fiscal imbalances and intergovernmental transfers in developed federations," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 22(1), pages 77-102, February.
- Ernesto Crivelli & Adam Leive & Thomas Stratmann, 2010. "Subnational Health Spending and Soft Budget Constraints in OECD Countries," IMF Working Papers 10/147, International Monetary Fund.
- de Mello, Luiz Jr, 2000. "Fiscal Decentralization and Intergovernmental Fiscal Relations: A Cross-Country Analysis," World Development, Elsevier, vol. 28(2), pages 365-380, February.
- Izabela Karpowicz, 2012. "Narrowing Vertical Fiscal Imbalances in Four European Countries," IMF Working Papers 12/91, International Monetary Fund.
- Guiseppe Pisauro, 2001. "Intergovernmental Relations and Fiscal Discipline; Between Commons and Soft Budget Constraints," IMF Working Papers 01/65, International Monetary Fund.
When requesting a correction, please mention this item's handle: RePEc:eee:moneco:v:60:y:2013:i:5:p:571-587. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
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.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.