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Fiscal Decentralization in Peru: A Perspective on Recent Developments and Future Challenges

ODecentralization is a fairly recent process in Peru that has been driven by a mixture of democratization, state modernization, increased accountability in service delivery, and regional economic development objectives. Politics has also played an important role. Overall, the general approach to decentralization reform in Peru has been cautious and conservative and by design its implementation has been gradual. With hindsight there were several important missteps that could have been avoided. There are other important aspects that will require substantial reform efforts in the coming years, including the formation of macroregions and how to undo the important negative consequences of the canon system. Peru is today at a stage where the question is what final form of decentralization to adopt. This paperer provides a blueprint for achieving a more efficient and equitable decentralization system in the country.

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File URL: http://icepp.gsu.edu/files/2015/03/ispwp1324.pdf
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Paper provided by International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University in its series International Center for Public Policy Working Paper Series, at AYSPS, GSU with number paper1324.

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Length: 82 pages
Date of creation: 02 Nov 2013
Handle: RePEc:ays:ispwps:paper1324
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Web page: http://aysps.gsu.edu/isp/index.html

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  1. Jorge Vega Castro, 2008. "Análisis del proceso de descentralización fiscal en el Perú," Documentos de Trabajo / Working Papers 2008-266, Departamento de Economía - Pontificia Universidad Católica del Perú.
  2. Gustavo Canavire-Bacarreza & Jorge Martínez-Vázquez & Cristián Sepúlveda, 2012. "Sub-national Revenue Mobilization in Peru," IDB Publications (Working Papers) 3951, Inter-American Development Bank.
  3. JosÈ M. Albala-Bertrand & Emmanuel C. Mamatzakis, 2004. "The Impact of Public Infrastructure on the Productivity of the Chilean Economy," Review of Development Economics, Wiley Blackwell, vol. 8(2), pages 266-278, 05.
  4. Jorge Martinez-Vazquez & Signe Zeikate, 2004. "Ukraine: Assessment of the Implementation of the New Formula Based Inter-Governmental Transfer System," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0408, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  5. Eduardo Morón & Cynthia Sanborn, 2006. "The Pitfalls of Policymaking in Peru: Actors, Institutions and Rules of the Game," Research Department Publications 3202, Inter-American Development Bank, Research Department.
  6. Jorge Martinez-Vazquez & Andrey Timofeev, 2005. "Choosing between Centralized and Decentralized Models of Tax Administration (2005)," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0502, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  7. Deller, Steven C & Rudnicki, Edward, 1992. "Managerial Efficiency in Local Government: Implications on Jurisdictional Consolidation," Public Choice, Springer, vol. 74(2), pages 221-231, September.
  8. Nora Gordon & Brian Knight, 2006. "The Causes of Political Integration: An Application to School Districts," NBER Working Papers 12047, National Bureau of Economic Research, Inc.
  9. Christian von Haldenwang, 2010. "Taxation, Fiscal Decentralisation and Legitimacy: The Role of Semi-Autonomous Tax Agencies in Peru," Development Policy Review, Overseas Development Institute, vol. 28(6), pages 643-667, November.
  10. Rogers Ahlbrandt, 1973. "Efficiency in the provision of fire services," Public Choice, Springer, vol. 16(1), pages 1-15, September.
  11. Alt, James E., 1971. "Some Social and Political Correlates of County Borough Expenditures," British Journal of Political Science, Cambridge University Press, vol. 1(01), pages 49-62, January.
  12. B. Dahlby & L. S. Wilson, 1994. "Fiscal Capacity, Tax Effort, and Optimal Equalization Grants," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 657-672, August.
  13. Jorge Martinez-Vazquez & Ming-Hung Yao, 2009. "Fiscal Decentralization and Public Sector Employment: A Cross-Country Analysis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper0903, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  14. Gyimah-Brempong, Kwabena, 1987. "Economies of Scale in Municipal Police Departments: The Case of Florida," The Review of Economics and Statistics, MIT Press, vol. 69(2), pages 352-356, May.
  15. Bodkin, Ronald G & Conklin, David W, 1971. "Scale and Other Determinants of Municipal Government Expenditures in Ontario: A Quantitative Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 12(3), pages 465-481, October.
  16. James Alm & Jorge Martinez-Vazquez & Dana Weist & Dana Weist, 2004. "Introduction," Chapters,in: Reforming Intergovernmental Fiscal Relations and the Rebuilding of Indonesia, chapter 1 Edward Elgar Publishing.
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