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Centralizing Tendencies in the Public Sector in Germany

  • Stegarescu, Dan
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    This paper investigates the long-term trend and the underlying determinants of public sector centralization in Germany from 1871 until today. The institutional and the quantitative review of the German history provides no conclusive evidence for a continuous process of government centralization as suggested by Popitz' "law", but rather for some distinct developments caused by the effects of wars and regime changes. Accordingly, whereas the role of the central government increased continuously at the expense of the state governments untilWorldWar II, after 1950 the state level regained importance. An empirical analysis for the period 1950 to 2001 reveals a signidicant decentralizing effect of per capita income growth, but provides no clear evidence for a causal relationship between economic and European integration and fiscal decentralization in the case of Germany.

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    Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 05-46.

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    Date of creation: 2005
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    Handle: RePEc:zbw:zewdip:4272
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    1. Charles Blankart, 2000. "The Process of Government Centralization: A Constitutional View," Constitutional Political Economy, Springer, vol. 11(1), pages 27-39, March.
    2. Alesina, Alberto & Spolaore, Enrico, 1997. "On the Number and Size of Nations," The Quarterly Journal of Economics, MIT Press, vol. 112(4), pages 1027-56, November.
    3. Peltzman, Sam, 1980. "The Growth of Government," Journal of Law and Economics, University of Chicago Press, vol. 23(2), pages 209-87, October.
    4. Stegarescu, Dan & Büttner, Thiess & Behnisch, Alexej, 2002. "Public Sector Centralization and Productivity Growth: Reviewing the German Experience," ZEW Discussion Papers 02-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    5. Stegarescu, Dan, 2004. "Public Sector Decentralization: Measurement Concepts and Recent International Trends," ZEW Discussion Papers 04-74, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Stegarescu, Dan, 2004. "Economic Integration and Fiscal Decentralization: Evidence from OECD Countries," ZEW Discussion Papers 04-86, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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