Conditional Transfers to Promote Local Government Participation in Mexico
Mexico is a very centralized country mainly as a result of the involvement of the federal government (FG) in functions that would be more efficiently provided by subnational governments (SG). The concentration of activities in the FG is the result of two institutional features: the unclear legal assignment of expenditure functions across levels of government, and the assignment of sources of revenue that concentrates a larger share of revenues in hands of the FG. In the presence of multiple uses of federal transfers, and in the absence of information on the costs of providing SG services, the FG has been reasonably reluctant to decentralize more functions. As long as the FG remains in control of most of government revenues, it is important to ensure that the benefits from decentralization also accrue to it. The transfer of functions should avoid SG neglect of those functions that generate benefits to the rest of the country and keep control over the size of transfers. One instrument that can achieve both objectives is a widespread use of conditional grants.
Volume (Year): VII (1998)
Issue (Month): 2 (July-December)
|Contact details of provider:|
When requesting a correction, please mention this item's handle: RePEc:emc:ecomex:v:7:y:1998:i:2:p:189-227. 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: (Ricardo Tiscareño)
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.