Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries

This paper examines the importance of fiscal autonomy in the analysis of decentralization. Using new data published by the OECD (2001 and 2002), it reproduces several indicators and proposes new measures of decentralization that take into considera...

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Main Authors: Meloche, Jean-Philippe, Vaillancourt, Francois, Yilmaz, Serdar
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2013
Subjects:
Online Access:http://documents.worldbank.org/curated/en/2004/03/3171516/decentralization-or-fiscal-autonomy-really-matter-effects-growth-public-sector-size-european-transition-countries
http://hdl.handle.net/10986/15619
id okr-10986-15619
recordtype oai_dc
spelling okr-10986-156192021-04-23T14:03:20Z Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries Meloche, Jean-Philippe Vaillancourt, Francois Yilmaz, Serdar ACTUAL COSTS AUTHORITY AUTONOMY BUSINESS TAXES CAPITAL GRANTS CENTRAL GOVERNMENT CITIZENS COLLUSION DECENTRALIZATION DECENTRALIZATION PROCESS DECONCENTRATION DEGREE OF AUTONOMY DEVOLUTION ECONOMETRIC MODELS ECONOMIC GROWTH ECONOMIC OUTCOMES ECONOMIC PERFORMANCE EQUALIZATION EXPENDITURE EXPENDITURE EXPENDITURE EXTERNALITIES FISCAL FISCAL DECENTRALIZATION FISCAL REVENUE GDP GDP PER CAPITA GOVERNMENT FINANCE GOVERNMENT REVENUE GOVERNMENT REVENUES GROWTH RATE HUMAN CAPITAL INTERGOVERNMENTAL TRANSFERS LEVELS OF GOVERNMENT LOCAL GOVERNMENTS OWN SOURCE REVENUE PER CAPITA INCOME POLICY CONTROL POSITIVE EFFECTS PUBLIC SECTOR PUBLIC SERVICES REVENUE GRANTS REVENUE SOURCES SOCIAL ASSISTANCE SOCIAL POLICY SUBNATIONAL GOVERNMENT SUBNATIONAL GOVERNMENTS TAX TAX RATE TAX REVENUE TAX REVENUES TAX SHARING TIME SERIES TOTAL REVENUE TRANSITION ECONOMIES VOTING WASTE DISPOSAL DECENTRALIZATION FISCAL ADMINISTRATION AUTONOMY TRANSITION ECONOMIES GROWTH PATTERNS PUBLIC SECTOR MANAGEMENT PERFORMANCE INDICATORS SUBNATIONAL FINANCES SUBNATIONAL GOVERNMENT ECONOMIC MODELS ECONOMIC GROWTH This paper examines the importance of fiscal autonomy in the analysis of decentralization. Using new data published by the OECD (2001 and 2002), it reproduces several indicators and proposes new measures of decentralization that take into consideration su-bnational governments' autonomy over their revenues. Two models are reproduced: Davoodi and Zou (1998) on decentralization and economic growth, and Oates (1985), on decentralization and public sector size. Some evidence suggests that fiscal autonomy positively affects economic growth. Also, it seems to affect the size of the state, but evidence on this relation is limited. Despite some statistical weaknesses, there are sufficient indications to argue that sub-national governments' fiscal autonomy should be a major concern when measuring decentralization. 2013-09-04T20:15:27Z 2013-09-04T20:15:27Z 2004-03 http://documents.worldbank.org/curated/en/2004/03/3171516/decentralization-or-fiscal-autonomy-really-matter-effects-growth-public-sector-size-european-transition-countries http://hdl.handle.net/10986/15619 English en_US Policy Research Working Paper;No. 3254 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia Eastern Europe European Union
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACTUAL COSTS
AUTHORITY
AUTONOMY
BUSINESS TAXES
CAPITAL GRANTS
CENTRAL GOVERNMENT
CITIZENS
COLLUSION
DECENTRALIZATION
DECENTRALIZATION PROCESS
DECONCENTRATION
DEGREE OF AUTONOMY
DEVOLUTION
ECONOMETRIC MODELS
ECONOMIC GROWTH
ECONOMIC OUTCOMES
ECONOMIC PERFORMANCE
EQUALIZATION
EXPENDITURE
EXPENDITURE EXPENDITURE
EXTERNALITIES
FISCAL
FISCAL DECENTRALIZATION
FISCAL REVENUE
GDP
GDP PER CAPITA
GOVERNMENT FINANCE
GOVERNMENT REVENUE
GOVERNMENT REVENUES
GROWTH RATE
HUMAN CAPITAL
INTERGOVERNMENTAL TRANSFERS
LEVELS OF GOVERNMENT
LOCAL GOVERNMENTS
OWN SOURCE REVENUE
PER CAPITA INCOME
POLICY CONTROL
POSITIVE EFFECTS
PUBLIC SECTOR
PUBLIC SERVICES
REVENUE GRANTS
REVENUE SOURCES
SOCIAL ASSISTANCE
SOCIAL POLICY
SUBNATIONAL GOVERNMENT
SUBNATIONAL GOVERNMENTS
TAX
TAX RATE
TAX REVENUE
TAX REVENUES
TAX SHARING
TIME SERIES
TOTAL REVENUE
TRANSITION ECONOMIES
VOTING
WASTE DISPOSAL DECENTRALIZATION
FISCAL ADMINISTRATION
AUTONOMY
TRANSITION ECONOMIES
GROWTH PATTERNS
PUBLIC SECTOR MANAGEMENT
PERFORMANCE INDICATORS
SUBNATIONAL FINANCES
SUBNATIONAL GOVERNMENT
ECONOMIC MODELS
ECONOMIC GROWTH
spellingShingle ACTUAL COSTS
AUTHORITY
AUTONOMY
BUSINESS TAXES
CAPITAL GRANTS
CENTRAL GOVERNMENT
CITIZENS
COLLUSION
DECENTRALIZATION
DECENTRALIZATION PROCESS
DECONCENTRATION
DEGREE OF AUTONOMY
DEVOLUTION
ECONOMETRIC MODELS
ECONOMIC GROWTH
ECONOMIC OUTCOMES
ECONOMIC PERFORMANCE
EQUALIZATION
EXPENDITURE
EXPENDITURE EXPENDITURE
EXTERNALITIES
FISCAL
FISCAL DECENTRALIZATION
FISCAL REVENUE
GDP
GDP PER CAPITA
GOVERNMENT FINANCE
GOVERNMENT REVENUE
GOVERNMENT REVENUES
GROWTH RATE
HUMAN CAPITAL
INTERGOVERNMENTAL TRANSFERS
LEVELS OF GOVERNMENT
LOCAL GOVERNMENTS
OWN SOURCE REVENUE
PER CAPITA INCOME
POLICY CONTROL
POSITIVE EFFECTS
PUBLIC SECTOR
PUBLIC SERVICES
REVENUE GRANTS
REVENUE SOURCES
SOCIAL ASSISTANCE
SOCIAL POLICY
SUBNATIONAL GOVERNMENT
SUBNATIONAL GOVERNMENTS
TAX
TAX RATE
TAX REVENUE
TAX REVENUES
TAX SHARING
TIME SERIES
TOTAL REVENUE
TRANSITION ECONOMIES
VOTING
WASTE DISPOSAL DECENTRALIZATION
FISCAL ADMINISTRATION
AUTONOMY
TRANSITION ECONOMIES
GROWTH PATTERNS
PUBLIC SECTOR MANAGEMENT
PERFORMANCE INDICATORS
SUBNATIONAL FINANCES
SUBNATIONAL GOVERNMENT
ECONOMIC MODELS
ECONOMIC GROWTH
Meloche, Jean-Philippe
Vaillancourt, Francois
Yilmaz, Serdar
Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries
geographic_facet Europe and Central Asia
Eastern Europe
European Union
relation Policy Research Working Paper;No. 3254
description This paper examines the importance of fiscal autonomy in the analysis of decentralization. Using new data published by the OECD (2001 and 2002), it reproduces several indicators and proposes new measures of decentralization that take into consideration su-bnational governments' autonomy over their revenues. Two models are reproduced: Davoodi and Zou (1998) on decentralization and economic growth, and Oates (1985), on decentralization and public sector size. Some evidence suggests that fiscal autonomy positively affects economic growth. Also, it seems to affect the size of the state, but evidence on this relation is limited. Despite some statistical weaknesses, there are sufficient indications to argue that sub-national governments' fiscal autonomy should be a major concern when measuring decentralization.
format Publications & Research :: Policy Research Working Paper
author Meloche, Jean-Philippe
Vaillancourt, Francois
Yilmaz, Serdar
author_facet Meloche, Jean-Philippe
Vaillancourt, Francois
Yilmaz, Serdar
author_sort Meloche, Jean-Philippe
title Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries
title_short Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries
title_full Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries
title_fullStr Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries
title_full_unstemmed Decentralization or Fiscal Autonomy? What Does Really Matter? Effects on Growth and Public Sector Size in European Transition Countries
title_sort decentralization or fiscal autonomy? what does really matter? effects on growth and public sector size in european transition countries
publisher World Bank, Washington, DC
publishDate 2013
url http://documents.worldbank.org/curated/en/2004/03/3171516/decentralization-or-fiscal-autonomy-really-matter-effects-growth-public-sector-size-european-transition-countries
http://hdl.handle.net/10986/15619
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