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Supranational Integration And National Reorganization

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  • Baskaran, Thushyanthan

Abstract

We explore the implications of European integration for scal decentralization in EU member states with a dataset on 21 OECD countries over the 1975-2000 period. The dierence-in-dierence methodology is used to establish causality. EU member states are classied as the treatment and non-EU OECD countries as the control group. The Maastricht treaty is interpreted as a quasi-experimental policy intervention that substantially advanced European integration. Our results suggest that tax decentralization has increased in EU countries after the signing of the Maastricht treaty. The treaty's eect on expenditure decentralization also seems to be positive, but is less clear-cut.

Suggested Citation

  • Baskaran, Thushyanthan, 2009. "Supranational Integration And National Reorganization," MPRA Paper 21597, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:21597
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    Cited by:

    1. Oto-Peralías, Daniel & Romero-Ávila, Diego & Usabiaga, Carlos, 2013. "Does fiscal decentralization mitigate the adverse effects of corruption on public deficits?," European Journal of Political Economy, Elsevier, vol. 32(C), pages 205-231.
    2. Libman, Alexander, 2010. "Internal centralization and international integration in the post-Soviet space," MPRA Paper 21882, University Library of Munich, Germany.

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    More about this item

    Keywords

    Fiscal decentralization; Maastricht treaty; supranational integration; institutional change.;
    All these keywords.

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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