IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Passing the Buck? Central and Sub-national Governments in Times of Fiscal Stress

  • Rudiger Ahrend
  • Marta Curto-Grau
  • Camila Vammalle

The paper explores interrelations between the fiscal situation of sub-national and central governments, or – put differently – whether and how sub-national and central governments contribute to each other’s fiscal difficulties. The first part of the paper examines sub-national government policies that may negatively affect the fiscal situation of the central government. Based on a new cross-country data-set at the level of individual regions, it examines structural factors that increase the probability of sub-national entities accumulating amounts of debt that may ultimately turn out to be unsustainable. The underlying idea is to explore to what degree such debt levels could result from moral hazard-driven behaviour at the regional level. The second part of the paper examines whether and how national governments hand the burden of fiscal adjustment down to sub-national levels, mainly looking at examples from the wave of fiscal adjustments in the wake of the 2007-09 global financial crisis. Cette étude examine dans quelle mesure la situation budgétaire des gouvernements infra-nationaux et celle des gouvernements centraux sont liées – ou, exprimé différemment, comment les gouvernements infra-nationaux et centraux contribuent à leurs difficultés budgétaires réciproques. La première partie de l’étude analyse les politiques conduites par les gouvernements infra-nationaux pouvant affecter négativement la situation budgétaire du gouvernement central. Une analyse des facteurs structurels susceptibles d’accroître la probabilité d’accumulation de dette par les entités infra-nationales (et pouvant au final la rendre insoutenable) est alors conduite. Basée sur une nouvelle base de données au niveau regional pour six pays de l’OCDE, elle cherche à déterminer à quel point ces niveaux de dette sont susceptibles d’être influencés par des comportements d’aléa moral de la part des autorités régionales. La seconde partie de cette étude examine la manière dont les gouvernements centraux transfèrent le poids de l’ajustement budgétaire aux gouvernements infra-nationaux, en se concentrant sur des épisodes de consolidation budgétaire ayant suivi la crise financière internationale de 2007-2009.

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.

File URL: http://dx.doi.org/10.1787/5k49df1kr95l-en
Our checks indicate that this address may not be valid because: 403 Forbidden (http://dx.doi.org/10.1787/5k49df1kr95l-en [303 See Other]--> http://www.oecd-ilibrary.org/urban-rural-and-regional-development/passing-the-buck-central-and-sub-national-governments-in-times-of-fiscal-stress_5k49df1kr95l-en). If this is indeed the case, please notify ()


Download Restriction: no

Paper provided by OECD Publishing in its series OECD Regional Development Working Papers with number 2013/5.

as
in new window

Length:
Date of creation: 26 Mar 2013
Date of revision:
Handle: RePEc:oec:govaab:2013/5-en
Contact details of provider: Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Phone: 33-(0)-1-45 24 82 00
Fax: +33-1-45.24.87.96
Web page: http://www.oecd.org
Email:


More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:oec:govaab:2013/5-en. 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: ()

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.