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Local Borrowing Autonomy As Part Of Fiscal Decentralization Process


  • Crasneac Alexandru Octavian

    () (West University of Timisoara, Economics and Business Administration)


Beside the usual fiscal instruments like taxes and intergovernmental grants, sub-central governments have access to additional revenue through borrowing. When assessing the fiscal decentralization process, a key issue is the local borrowing autonomy, even though the fiscal decentralization literature has devoted surprisingly little attention to this topic. This paper examines the implications of sub-central government borrowing and the reasons behind the borrowing constrains they face. Based on the methodology developed by IADB, we have calculated a Borrowing Autonomy Index for Romania and compared the results to other countries providing a valuable insight on the fiscal decentralization specific features.

Suggested Citation

  • Crasneac Alexandru Octavian, 2012. "Local Borrowing Autonomy As Part Of Fiscal Decentralization Process," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 449-453, December.
  • Handle: RePEc:ora:journl:v:1:y:2012:i:2:p:449-453

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    References listed on IDEAS

    1. Wallace E. Oates, 1968. "The Theory of Public Finance in a Federal System," Canadian Journal of Economics, Canadian Economics Association, vol. 1(1), pages 37-54, February.
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    More about this item


    fiscal decentralization; sub-central government; local borrowing; borrowing autonomy;

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism


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