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Devolution dynamics of Spanish local government

Author

Listed:
  • Emili Tortosa Ausina

    () (Universitat Jaume I)

  • Diego Prior Jiménez

    (Universidad Autónoma de Barcelona)

  • María Teresa Balaguer-Coll

    (Universitat Jaume I)

Abstract

Over the last few years, there has been a devolutionary tendency in many developed and developingcountries. In this article we propose a methodology to decompose whether the benefits in terms ofefficiency derived from transfers of powers from higher to municipal levels of government (the¿economic dividend¿ of devolution) might increase over time. This methodology is based on linearprogramming approaches for efficiency measurement. We provide an application to Spanishmunicipalities, which have had to adapt to both the European Stability and Growth Pact as well as todomestic regulation seeking local governments¿ balanced budget. Results indicate that efficiencygains from enhanced decentralization have increased over time. However, the way through whichthese gains accrue differs across municipalities¿in some cases technical change is the maincomponent, whereas in others catching up dominates. Durante los últimos años ha habido una corriente hacia la descentralización de poderes desde laadministración central hacia capas más bajas de gobierno, tanto en países desarrollados como envías de desarrollo. En este artículo proponemos una metodología para determinar si los beneficiosen términos de eficiencia derivados de la transferencia de poderes a los municipios (el "dividendo económico" de la descentralización) podrían aumentar en el tiempo. La técnica está basada enenfoques de programación lineal para la medición de la eficiencia. Llevamos a cabo la aplicación alos municipios españoles, que han tenido que adaptarse tanto al Pacto de Estabilidad y Crecimiento europeo, así como a la Ley General de Estabilidad Presupuestaria. Los resultados indican que lasganancias de eficiencia derivadas de una mayor descentralización han aumentado en los últimosaños. Sin embargo, el modo en que estas se originan varía según municipios -en algunos casos es elcambio técnico el factor dominante, en otros han sido las ganancias de eficiencia-.

Suggested Citation

  • Emili Tortosa Ausina & Diego Prior Jiménez & María Teresa Balaguer-Coll, 2010. "Devolution dynamics of Spanish local government," Working Papers. Serie EC 2010-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  • Handle: RePEc:ivi:wpasec:2010-01
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    References listed on IDEAS

    as
    1. De Borger, B & Kerstens, K. & Moesen, W. & Vanneste, J., 1994. "Explaining Differences in Productive Efficiency: An Application to Belgian Municipalities," Public Choice, Springer, vol. 80(3-4), pages 339-358, September.
    2. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2010. "Devolution dynamics of Spanish local government," Environment and Planning A, Pion Ltd, London, vol. 42(6), pages 1476-1495, June.
    3. Francisco Requena & Guadalupe Serrano & Joan Martín Montaner, 2009. "The effects of immigration on the productive structure of Spanish regions," Working Papers. Serie EC 2009-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. De Borger, Bruno & Kerstens, Kristiaan, 1996. "Cost efficiency of Belgian local governments: A comparative analysis of FDH, DEA, and econometric approaches," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 145-170, April.
    5. Martinez-Vazquez, Jorge & McNab, Robert M., 2003. "Fiscal Decentralization and Economic Growth," World Development, Elsevier, vol. 31(9), pages 1597-1616, September.
    6. Emili Tortosa Ausina & Diego Prior & María Teresa Balaguer-Coll, 2006. "Decentralization And Effiency In Spanish Local Goverment," Working Papers. Serie EC 2006-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    7. Victor M. Giménez & Diego Prior, 2007. "Long- and Short-Term Cost Efficiency Frontier Evaluation: Evidence from Spanish Local Governments," Fiscal Studies, Institute for Fiscal Studies, vol. 28(1), pages 121-139, March.
    8. Balaguer-Coll, Maria Teresa & Prior, Diego & Tortosa-Ausina, Emili, 2007. "On the determinants of local government performance: A two-stage nonparametric approach," European Economic Review, Elsevier, vol. 51(2), pages 425-451, February.
    9. Martins-Filho, Carlos & Yao, Feng, 2008. "A smooth nonparametric conditional quantile frontier estimator," Journal of Econometrics, Elsevier, vol. 143(2), pages 317-333, April.
    10. Ulrich Thießen, 2003. "Fiscal Decentralisation and Economic Growth in High-Income OECD Countries," Fiscal Studies, Institute for Fiscal Studies, vol. 24(3), pages 237-274, September.
    11. Pilar Beneito López & Amparo Sanchis Llopis & María Engracia Rochina Barrachina, 2009. "The role of learning in innovation: in-house versus externally contracted R&D experience," Working Papers. Serie EC 2009-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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    Cited by:

    1. Andy Pike & Andrés Rodríguez-Pose & John Tomaney & Gianpiero Torrisi & Vassilis Tselios, 2012. "In search of the ‘economic dividend’ of devolution: spatial disparities, spatial economic policy, and decentralisation in the UK," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 30(1), pages 10-28, February.
    2. Elena Pardo & Inés Küster Boluda & Torpong Suemanotham, 2010. "Product placement in video games as a marketing strategy: an attempt to analysis in Disney company," Working Papers. Serie EC 2010-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    3. Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2010. "Devolution Dynamics of Spanish Local Government," Environment and Planning A, , vol. 42(6), pages 1476-1495, June.
    4. M. Teresa Sanchis Llopis & Vicente Esteve Garcia & Antonio Cubel, 2010. "International technology diffusion through patents during the second half of the XXth century," Working Papers. Serie EC 2010-10, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    5. Inés Küster Boluda & Natalia Vila López & Vicente Castillo, 2010. "Efectos de los videojuegos en las marcas emplazadas: la transmisión de imagen a través de las emociones," Working Papers. Serie EC 2010-05, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    6. Thieme, Claudio & Prior, Diego & Tortosa-Ausina, Emili, 2013. "A multilevel decomposition of school performance using robust nonparametric frontier techniques," Economics of Education Review, Elsevier, vol. 32(C), pages 104-121.
    7. Nikolaos Georgantzis & Aitor Ciarreta & Carlos Gutiérrez-Hita, 2010. "Renewable sources, technology mix, and competiton in liberalized electricity markets: the case of Spain," Working Papers. Serie EC 2010-06, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    8. Emili Tortosa Ausina & Diego Prior Jiménez & María Teresa Balaguer-Coll, 2010. "Output complexity, environmental conditions, and the efficiency of municipalities: a robust metafrontier approach," Working Papers. Serie EC 2010-02, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    9. Asier Minondo & Francisco Requena Silvente, 2010. "Welfare gains from imported varieties in Spain, 1988-2006," Working Papers. Serie EC 2010-12, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    10. Ginés Hernández Cánovas & María Camino Ramón Llorens, 2010. "Venture capitalists in Spain: cluster analysis of criteria used in the screening process," Working Papers. Serie EC 2010-08, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    11. Francisco Mas Ruiz & Juan Luis Nicolau Gonzálbez, 2010. "Contribution of individual to collective brands," Working Papers. Serie EC 2010-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    12. Ángel Pardo Tornero & María Dolores Furió Ortega, 2010. "Politics and elections at the Spanish stock exchange," Working Papers. Serie EC 2010-11, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    13. repec:eee:spacre:v:16:y:2013:i:2:p:83-93 is not listed on IDEAS
    14. Ana María Sabater & Araceli Mora & Beatriz García Osma, 2010. "Strategic accounting choice around firm level labour negotiations," Working Papers. Serie EC 2010-09, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    15. Meryem Duygun & Silvia Pazzi & Emili Tortosa-Ausina & Simona Zambelli, 2014. "Does local public ownership matter for the efficiency of water utilities? Evidence from Italy," Working Papers 2014/21, Economics Department, Universitat Jaume I, Castellón (Spain).

    More about this item

    Keywords

    análisis de la actividad; dinámica de la descentralización; eficiencia; gobierno local. activity analysis; decentralization dynamics; efficiency; local government.;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D60 - Microeconomics - - Welfare Economics - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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