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Measuring the Role of Subnational Governments

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  • Mr. Jonathan Levin

Abstract

To measure subnational governments, only external money flows are counted, excluding intra-level transactions in measuring a level of government and all intergovernmental transactions in measuring general government. Control, finance, and administration should be distinguished in measuring centralization and each level’s share of general government, administered expenditures being net of grants given to other governments and financed expenditures net of grants received. Disparate decentralization of finance, control, and administration brings vertical imbalance, measured by the portion of a government’s expenditures not covered by its own resources and by the ratio of intergovernmental grants to total government expenditures.

Suggested Citation

  • Mr. Jonathan Levin, 1991. "Measuring the Role of Subnational Governments," IMF Working Papers 1991/008, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:1991/008
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    Citations

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    Cited by:

    1. Celina Souza, 1996. "Redemocratization and Decentralization in Brazil: The Strength of the Member States," Development and Change, International Institute of Social Studies, vol. 27(3), pages 529-555, July.
    2. Guy Gilbert, 1996. "Le fédéralisme financier, perspectives de microéconomie spatiale," Revue Économique, Programme National Persée, vol. 47(2), pages 311-363.
    3. Barry Eichengreen & Jurgen von Hagen, 1996. "Fiscal Policy and Monetary Union: Is There a Tradeoff between Federalism and Budgetary Restrictions?," NBER Working Papers 5517, National Bureau of Economic Research, Inc.
    4. Tao Zhang & Heng-fu Zou, 2012. "The Impact of Intergovernmental Grants on Regional Government Finance and Regional Economic Development: The Case of the Russia Federation," CEMA Working Papers 542, China Economics and Management Academy, Central University of Finance and Economics.

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