More Than You Can Handle : Decentralization and Spending Ability of Peruvian Municipalities
In the past three decades, emerging countries have gone through extensive decentralization reforms. Yet, there are no studies assessing quantitatively the relative importance of various factors known to affect the success of decentralization. This...
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| Format: | Policy Research Working Paper |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110817143157 http://hdl.handle.net/10986/3525 |
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okr-10986-35252021-04-23T14:02:10Z More Than You Can Handle : Decentralization and Spending Ability of Peruvian Municipalities Loayza, Norman V. Rigolini, Jamele Calvo-Gonzalez, Oscar ACCOUNTABILITY AGGREGATE EXPENDITURES AGGREGATE FISCAL ALLOCATION BANK POLICY BUDGET ALLOCATIONS BUDGET CONSTRAINTS BUDGET EXECUTION BUDGET EXPENDITURE BUDGET SIZE BUDGETARY ALLOCATION BUDGETARY PROCESS BUDGETING BUSINESS CYCLE CAPACITY BUILDING CAPACITY CONSTRAINTS CAPACITY-BUILDING CAPITAL BUDGET CAPITAL EXPENDITURE CAPITAL EXPENDITURES CAPITAL INVESTMENT CAPITAL INVESTMENTS CENTRAL GOVERNMENT CETERIS PARIBUS COEFFICIENTS COMMODITY PRICES COMPARATIVE ANALYSIS CONSTITUTIONAL REFORM CURRENT EXPENDITURES DECENTRALIZATION DECENTRALIZATION PROCESS DECENTRALIZATION PROGRAM DEMOCRACY DEVELOPING COUNTRIES DISTRICT DUMMY VARIABLE DUMMY VARIABLES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY EXPENDITURE DATA EXPENDITURES FIDUCIARY REQUIREMENTS FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT SYSTEM FINANCIAL RESOURCES FISCAL ACCOUNTS FISCAL DECENTRALIZATION FISCAL EXPENDITURE FISCAL EXPENDITURES FISCAL FEDERALISM FISCAL NEUTRALITY FIXED INVESTMENT GOVERNMENT PERFORMANCE HARD BUDGET CONSTRAINTS HUMAN RESOURCES INCUMBENT INSTITUTIONAL CAPACITY INTERNATIONAL BANK INVESTMENT PROJECTS LEGITIMACY LIVING STANDARDS LOCAL ADMINISTRATION LOCAL CAPACITY LOCAL GOVERNMENT LOCAL GOVERNMENTS MANDATES MAYOR MAYORS MINISTRY OF ECONOMY MUNICIPAL MUNICIPAL EXPENDITURES MUNICIPAL GOVERNMENTS MUNICIPAL LEVEL MUNICIPALITIES MUNICIPALITY NATURAL RESOURCE EXPLOITATION NATURAL RESOURCES OIL WINDFALLS OVERSIGHT MECHANISMS POLICY CHOICES POLICY MAKERS POLICY REFORM POLITICAL BUSINESS CYCLE POLITICAL COMPETITION POLITICAL ECONOMY POLITICAL SCIENCE POLITICIANS POSITIVE IMPACT OF DECENTRALIZATION POVERTY MAPS POVERTY RATE POVERTY REDUCTION PROVINCE PROVINCES PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURE DATA PUBLIC MANAGERS PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SPENDING RETURNS REVENUE SHARING SMALL MUNICIPALITIES SOFT BUDGET CONSTRAINTS SUB-NATIONAL SUB-NATIONAL GOVERNMENTS TOTAL EXPENDITURE TOTAL EXPENDITURES TOTAL SPENDING TYPES OF EXPENDITURES URBANIZATION VILLAGES In the past three decades, emerging countries have gone through extensive decentralization reforms. Yet, there are no studies assessing quantitatively the relative importance of various factors known to affect the success of decentralization. This paper builds on a comprehensive dataset the authors constructed for Peru, which merges municipal fiscal accounts with information about municipalities' characteristics such as population, poverty, education, and local politics. The paper then analyzes the leading factors affecting the ability of municipalities to execute the allocated budget using complementary methodologies, from least squares to quantile regression analyses. According to the existing literature and the Peruvian context, the analysis divides these factors into four categories: the budget size and allocation process; local capacity; local needs; and political economy constraints. Although all four factors affect decentralization, the largest determinant of spending ability is the adequacy of the budget with respect to local capacity. The results confirm the need for decentralization to be implemented gradually over time in parallel with strong capacity building efforts. 2012-03-19T18:04:01Z 2012-03-19T18:04:01Z 2011-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110817143157 http://hdl.handle.net/10986/3525 English Policy Research working paper ; no. WPS 5763 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean South America America Peru |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTABILITY AGGREGATE EXPENDITURES AGGREGATE FISCAL ALLOCATION BANK POLICY BUDGET ALLOCATIONS BUDGET CONSTRAINTS BUDGET EXECUTION BUDGET EXPENDITURE BUDGET SIZE BUDGETARY ALLOCATION BUDGETARY PROCESS BUDGETING BUSINESS CYCLE CAPACITY BUILDING CAPACITY CONSTRAINTS CAPACITY-BUILDING CAPITAL BUDGET CAPITAL EXPENDITURE CAPITAL EXPENDITURES CAPITAL INVESTMENT CAPITAL INVESTMENTS CENTRAL GOVERNMENT CETERIS PARIBUS COEFFICIENTS COMMODITY PRICES COMPARATIVE ANALYSIS CONSTITUTIONAL REFORM CURRENT EXPENDITURES DECENTRALIZATION DECENTRALIZATION PROCESS DECENTRALIZATION PROGRAM DEMOCRACY DEVELOPING COUNTRIES DISTRICT DUMMY VARIABLE DUMMY VARIABLES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY EXPENDITURE DATA EXPENDITURES FIDUCIARY REQUIREMENTS FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT SYSTEM FINANCIAL RESOURCES FISCAL ACCOUNTS FISCAL DECENTRALIZATION FISCAL EXPENDITURE FISCAL EXPENDITURES FISCAL FEDERALISM FISCAL NEUTRALITY FIXED INVESTMENT GOVERNMENT PERFORMANCE HARD BUDGET CONSTRAINTS HUMAN RESOURCES INCUMBENT INSTITUTIONAL CAPACITY INTERNATIONAL BANK INVESTMENT PROJECTS LEGITIMACY LIVING STANDARDS LOCAL ADMINISTRATION LOCAL CAPACITY LOCAL GOVERNMENT LOCAL GOVERNMENTS MANDATES MAYOR MAYORS MINISTRY OF ECONOMY MUNICIPAL MUNICIPAL EXPENDITURES MUNICIPAL GOVERNMENTS MUNICIPAL LEVEL MUNICIPALITIES MUNICIPALITY NATURAL RESOURCE EXPLOITATION NATURAL RESOURCES OIL WINDFALLS OVERSIGHT MECHANISMS POLICY CHOICES POLICY MAKERS POLICY REFORM POLITICAL BUSINESS CYCLE POLITICAL COMPETITION POLITICAL ECONOMY POLITICAL SCIENCE POLITICIANS POSITIVE IMPACT OF DECENTRALIZATION POVERTY MAPS POVERTY RATE POVERTY REDUCTION PROVINCE PROVINCES PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURE DATA PUBLIC MANAGERS PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SPENDING RETURNS REVENUE SHARING SMALL MUNICIPALITIES SOFT BUDGET CONSTRAINTS SUB-NATIONAL SUB-NATIONAL GOVERNMENTS TOTAL EXPENDITURE TOTAL EXPENDITURES TOTAL SPENDING TYPES OF EXPENDITURES URBANIZATION VILLAGES |
| spellingShingle |
ACCOUNTABILITY AGGREGATE EXPENDITURES AGGREGATE FISCAL ALLOCATION BANK POLICY BUDGET ALLOCATIONS BUDGET CONSTRAINTS BUDGET EXECUTION BUDGET EXPENDITURE BUDGET SIZE BUDGETARY ALLOCATION BUDGETARY PROCESS BUDGETING BUSINESS CYCLE CAPACITY BUILDING CAPACITY CONSTRAINTS CAPACITY-BUILDING CAPITAL BUDGET CAPITAL EXPENDITURE CAPITAL EXPENDITURES CAPITAL INVESTMENT CAPITAL INVESTMENTS CENTRAL GOVERNMENT CETERIS PARIBUS COEFFICIENTS COMMODITY PRICES COMPARATIVE ANALYSIS CONSTITUTIONAL REFORM CURRENT EXPENDITURES DECENTRALIZATION DECENTRALIZATION PROCESS DECENTRALIZATION PROGRAM DEMOCRACY DEVELOPING COUNTRIES DISTRICT DUMMY VARIABLE DUMMY VARIABLES ECONOMIC ACTIVITY ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC POLICY EXPENDITURE DATA EXPENDITURES FIDUCIARY REQUIREMENTS FINANCIAL MANAGEMENT FINANCIAL MANAGEMENT SYSTEM FINANCIAL RESOURCES FISCAL ACCOUNTS FISCAL DECENTRALIZATION FISCAL EXPENDITURE FISCAL EXPENDITURES FISCAL FEDERALISM FISCAL NEUTRALITY FIXED INVESTMENT GOVERNMENT PERFORMANCE HARD BUDGET CONSTRAINTS HUMAN RESOURCES INCUMBENT INSTITUTIONAL CAPACITY INTERNATIONAL BANK INVESTMENT PROJECTS LEGITIMACY LIVING STANDARDS LOCAL ADMINISTRATION LOCAL CAPACITY LOCAL GOVERNMENT LOCAL GOVERNMENTS MANDATES MAYOR MAYORS MINISTRY OF ECONOMY MUNICIPAL MUNICIPAL EXPENDITURES MUNICIPAL GOVERNMENTS MUNICIPAL LEVEL MUNICIPALITIES MUNICIPALITY NATURAL RESOURCE EXPLOITATION NATURAL RESOURCES OIL WINDFALLS OVERSIGHT MECHANISMS POLICY CHOICES POLICY MAKERS POLICY REFORM POLITICAL BUSINESS CYCLE POLITICAL COMPETITION POLITICAL ECONOMY POLITICAL SCIENCE POLITICIANS POSITIVE IMPACT OF DECENTRALIZATION POVERTY MAPS POVERTY RATE POVERTY REDUCTION PROVINCE PROVINCES PUBLIC ECONOMICS PUBLIC EXPENDITURE PUBLIC EXPENDITURE DATA PUBLIC MANAGERS PUBLIC SECTOR PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SPENDING RETURNS REVENUE SHARING SMALL MUNICIPALITIES SOFT BUDGET CONSTRAINTS SUB-NATIONAL SUB-NATIONAL GOVERNMENTS TOTAL EXPENDITURE TOTAL EXPENDITURES TOTAL SPENDING TYPES OF EXPENDITURES URBANIZATION VILLAGES Loayza, Norman V. Rigolini, Jamele Calvo-Gonzalez, Oscar More Than You Can Handle : Decentralization and Spending Ability of Peruvian Municipalities |
| geographic_facet |
Latin America & Caribbean Latin America & Caribbean South America America Peru |
| relation |
Policy Research working paper ; no. WPS 5763 |
| description |
In the past three decades, emerging
countries have gone through extensive decentralization
reforms. Yet, there are no studies assessing quantitatively
the relative importance of various factors known to affect
the success of decentralization. This paper builds on a
comprehensive dataset the authors constructed for Peru,
which merges municipal fiscal accounts with information
about municipalities' characteristics such as
population, poverty, education, and local politics. The
paper then analyzes the leading factors affecting the
ability of municipalities to execute the allocated budget
using complementary methodologies, from least squares to
quantile regression analyses. According to the existing
literature and the Peruvian context, the analysis divides
these factors into four categories: the budget size and
allocation process; local capacity; local needs; and
political economy constraints. Although all four factors
affect decentralization, the largest determinant of spending
ability is the adequacy of the budget with respect to local
capacity. The results confirm the need for decentralization
to be implemented gradually over time in parallel with
strong capacity building efforts. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Loayza, Norman V. Rigolini, Jamele Calvo-Gonzalez, Oscar |
| author_facet |
Loayza, Norman V. Rigolini, Jamele Calvo-Gonzalez, Oscar |
| author_sort |
Loayza, Norman V. |
| title |
More Than You Can Handle : Decentralization and Spending Ability of Peruvian Municipalities |
| title_short |
More Than You Can Handle : Decentralization and Spending Ability of Peruvian Municipalities |
| title_full |
More Than You Can Handle : Decentralization and Spending Ability of Peruvian Municipalities |
| title_fullStr |
More Than You Can Handle : Decentralization and Spending Ability of Peruvian Municipalities |
| title_full_unstemmed |
More Than You Can Handle : Decentralization and Spending Ability of Peruvian Municipalities |
| title_sort |
more than you can handle : decentralization and spending ability of peruvian municipalities |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110817143157 http://hdl.handle.net/10986/3525 |
| _version_ |
1764387143079165952 |