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Why do Differences in the Degree of Fiscal Decentralization Endure?

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  • Xavier Calsamiglia
  • Teresa Garcia-Milà
  • Therese J. McGuire

Abstract

A notable difference between the U.S. and many countries in Europe is in the degree of fiscal decentralization. Regional (and local) governments in the U.S. have significant autonomy in setting their own taxes and determining how to spend their revenues. This is not true of their counterparts in Spain, France, the United Kingdom, Czech Republic and many other European countries. In recent years, many countries formerly subject to dictatorships or communism have been considering decentralizing fiscal responsibility to sub-national governments as part of the process of democratization (see Bird and Ebel, forthcoming). Yet, much of Europe remains immune to adopting effective decentralization in which sub-national units have true taxing authority

Suggested Citation

  • Xavier Calsamiglia & Teresa Garcia-Milà & Therese J. McGuire, 2004. "Why do Differences in the Degree of Fiscal Decentralization Endure?," Working Papers 193, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:193
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    File URL: http://www.barcelonagse.eu/sites/default/files/working_paper_pdfs/193.pdf
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    Cited by:

    1. Roberto Guerrero Compeán, 2008. "Decentralization: Panacea or Pandora’s Box? Fiscal Perversity in Mexico," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 89-110, November.

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