Tax Decentralization and Public Deficits in OECD Countries
This article explores the effect of sub-national tax autonomy and sub-national control over shared taxes on primary deficits with panel data for 23 OECD countries over the 1975--2000 period. The results suggest that sub-national tax autonomy has a U-shaped effect on primary deficits. We find that the "average" country in the sample could increase the fiscal stability of its public sector by reducing sub-national tax autonomy. There is also some indication that sub-national control over shared taxes increases fiscal stability, but we obtain this result only if Belgium and Spain are included in the sample. Copyright 2012, Oxford University Press.
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.
Volume (Year): 42 (2012)
Issue (Month): 4 (October)
|Contact details of provider:|| Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK|
Fax: 01865 267 985
Web page: http://publius.oxfordjournals.org/
|Order Information:||Web: http://www.oup.co.uk/journals|
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.:
- Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
- Andres RodrIguez-Pose & Nicholas Gill, 2004. "Reassessing Relations between the Centre and the States: The Challenge for the Brazilian Administration," Regional Studies, Taylor & Francis Journals, vol. 38(7), pages 833-844.
- 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.
- Jonathan A. Rodden & Gunnar S. Eskeland (ed.), 2003. "Fiscal Decentralization and the Challenge of Hard Budget Constraints," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262182297, June.
- 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.
- Bilin Neyapti, 2008.
"Fiscal Decentralization and Deficits : International Evidence,"
0802, Department of Economics, Bilkent University.
- Neyapti, Bilin, 2010. "Fiscal decentralization and deficits: International evidence," European Journal of Political Economy, Elsevier, vol. 26(2), pages 155-166, June.
- Bilin Neyapti, 2003. "Fiscal Decentralisation and Deficits: International Evidence," Working Papers 2003/2, Turkish Economic Association.
- Mariano Tommasi & Sebastian Saiegh & Pablo Sanguinetti, 2001.
"Fiscal Federalism in Argentina: Policies, Politics, and Institutional Reform,"
ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION,
ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, vol. 0(Spring 20), pages 157-212, January.
- Mariano Tommasi & Sebastian M. Saiegh & Pablo Sanguinetti, 2001. "Fiscal Federalism in Argentina: Policies, Politics, and Institutional Reform," Working Papers 32, Universidad de San Andres, Departamento de Economia, revised May 2001.
- Wallace E. Oates, 1999. "An Essay on Fiscal Federalism," Journal of Economic Literature, American Economic Association, vol. 37(3), pages 1120-1149, 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.
- 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.
- Jørn Rattsø, 2004. "Fiscal Adjustment under Centralized Federalism: Empirical Evaluation of the Response to Budgetary Shocks," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 60(2), pages 240-, August.
- Tsebelis, George, 1995. "Decision Making in Political Systems: Veto Players in Presidentialism, Parliamentarism, Multicameralism and Multipartyism," British Journal of Political Science, Cambridge University Press, vol. 25(03), pages 289-325, July.
- 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.
- Christoph A. Schaltegger & Lars P. Feld, 2007.
"Are Fiscal Adjustments less Successful in Decentralized Governments?,"
CREMA Working Paper Series
2007-06, Center for Research in Economics, Management and the Arts (CREMA).
- Schaltegger, Christoph A. & Feld, Lars P., 2009. "Are fiscal adjustments less successful in decentralized governments?," European Journal of Political Economy, Elsevier, vol. 25(1), pages 115-123, March.
- Christoph A. Schaltegger & Lars P. Feld, 2007. "Are Fiscal Adjustments less Successful in Decentralized Governments?," CESifo Working Paper Series 1946, CESifo Group Munich.
- Andrés Rodríguez-Pose & Nicholas Gill, 2003. "The global trend towards devolution and its implications," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 21(3), pages 333-351, June.
- Alexander Plekhanov & Raju Singh, 2006.
"How Should Subnational Government Borrowing Be Regulated?Some Cross-Country Empirical Evidence,"
IMF Staff Papers,
Palgrave Macmillan, vol. 53(3), pages 4.
- Alexander Plekhanov & Raju Jan Singh, 2005. "How Should Subnational Government Borrowing Be Regulated? Some Cross-Country Empirical Evidence," IMF Working Papers 05/54, International Monetary Fund.
- Markus Freitag & Adrian Vatter, 2008. "Decentralization and Fiscal Discipline in Sub-national Governments: Evidence from the Swiss Federal System," Publius: The Journal of Federalism, Oxford University Press, vol. 38(2), pages 272-294, Spring.
- Timothy Goodspeed, 2002. "Bailouts in a Federation," International Tax and Public Finance, Springer, vol. 9(4), pages 409-421, August.
- Roy Bahl, 1999.
"Implementation Rules For Fiscal Decentralization,"
International Center for Public Policy Working Paper Series, at AYSPS, GSU
paper9901, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- Roy Bahl, 1999. "Implementation Rules For Fiscal Decentralization," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper9803, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- John Thornton & Amine Mati, 2008. "Fiscal Institutions and the Relation between Central and Sub-National Government Fiscal Balances," Public Finance Review, , vol. 36(2), pages 243-254, March.
- Ebel, Robert D. & Yilmaz, Serdar, 2002. "On the measurement and impact of fiscal decentralization," Policy Research Working Paper Series 2809, The World Bank.
When requesting a correction, please mention this item's handle: RePEc:oup:publus:v:42:y:2012:i:4:p:688-707. 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: (Oxford University Press)or (Christopher F. Baum)
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.