Different forms of decentralization and their impact on government performance: Micro-level evidence from 113 countries

Goel, Rajeev K.; Mazhar, Ummad; Nelson, Michael A.; Ram, Rati

doi:10.1016/j.econmod.2016.12.010

Cited by 76 publications

(44 citation statements)

References 41 publications

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“…Similarly, Enikolopov and Zhuravskaya () examined the decentralization‐governance nexus and discovered a significant relationship; however, they did so not by actually estimating efficiency scores, but by simply looking at World Bank governance indices and World Development Indicators as proxies. More recently, Goel et al () demonstrated a relationship between decentralization and the perception of governance quality.Hauner and Kyobe () also analysed public‐sector performance and efficiency in the health and education sectors for a large panel of countries using a broad set of controls. Control variables used for cross‐country efficiency comparisons will be described in more detail in Section IV.At the local level, the question of decentralization and technical efficiency has been looked at by, e.g., Barankay and Lockwood () and Balaguer‐Coll et al ().…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Public‐Sector Efficiency: Decentralization and Fiscal Rules

Christl¹,

Köppl‐Turyna²,

Kucsera³

2020

Kyklos

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SUMMARY This paper investigates the determinants of public‐sector efficiency, in particular the role of fiscal decentralization and fiscal rules. For 23 European countries over the period from 1995 to 2015, we construct a measure of public‐sector performance consisting of nine distinct indices for each area of public policy, such as administration, health education, economic performance, security and infrastructure. We use several efficiency techniques, e.g., free disposal hull and order‐m, and investigate input‐and output‐oriented efficiency in the public sector. We analyse in depth the impact of fiscal decentralization and fiscal rules on public‐sector efficiency. We conclude that, whereas decentralization fosters efficiency, fiscal rules have no effect. Moreover, fiscal rules, when combined with decentralization, may harm efficiency, which is consistent with the ratchet effect.

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Section: Literature Reviewmentioning

confidence: 99%

Determinants of Public‐Sector Efficiency: Decentralization and Fiscal Rules

Christl¹,

Köppl‐Turyna²,

Kucsera³

2020

Kyklos

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“…In contrast, decentralized states share power with the governments at different levels and clarify the responsibilities among multiple tiers. Actual authority is put into the hands of local authorities when it comes to policy decision-making (Goel et al, 2017). Therefore, in a decentralized regime, either policy blockages or bargaining may set limits on the choice of policy strategy (Clune, 1993).…”

Section: Institutional Arrangements: Decentralized Versus Centralizedmentioning

confidence: 99%

Why Do Countries Respond Differently to COVID-19? A Comparative Study of Sweden, China, France, and Japan

Yan

Zhang

et al. 2020

The American Review of Public Administration

194

138

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Nonpharmaceutical interventions (NPIs) are important public health tools to fight against COVID-19. Governments around the world have instituted a variety of NPIs to modify individuals’ behavior, giving rise to four distinct pandemic response strategies: nudge, mandate, decree, and boost. To better understand the different policy choices involved in these strategies, four countries including Sweden, China, France, and Japan were compared to identify the critical institutional and cultural determinants of national response strategy. The finding shows that various responses regarding same threat are dependent on the distinctive institutional arrangements and cultural orientation of each country, and thus, there is no One-Size-Fits-All strategy.

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“…Using cross‐country data, Goel and Saunoris () used a novel indicator of decentralization—virtual decentralization, or the degree by which the government provides public services through online platforms—and found it to be effective in reducing corruption and reducing the size of the informal economy. In another cross‐country analysis, Goel et al (), used four different decentralization indicators—expenditure decentralization, a federalism dummy, an aggregate decentralization index, and an administrative decentralization index that measures the power of local governments—and found that they are most positively associated with perception‐based measures of good governance. Some recent studies focused on developed countries.…”

Section: Some Decentralization Literaturementioning

confidence: 99%

Decentralization, Fiscal Independence, and Poverty in the Philippines

Canare¹,

Francisco²

2019

Public Budgeting & Finance

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Decentralization is a common public sector reform in developing countries. Its basic rationale is that local governments have an informational advantage regarding the needs and preferences of consumers. However, decentralization also has drawbacks. Foremost is the efficiency advantage of the central government in providing public services because of economies of scale and better access to resources. This study looked at the relationship between decentralization and poverty using data from Philippine cities and municipalities. Results suggest that decentralization, as represented by fiscal independence and measured by the share of locally sourced revenues to total local government revenues, is indeed associated with lower poverty. However, this effect is not linear—the marginal effect of decentralization on poverty diminishes as decentralization increases. Moreover, decentralization moderates the positive effect of good governance on poverty reduction and the magnitude of the relationship between poverty and decentralization is stronger in poorer municipalities than in richer ones.

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Different forms of decentralization and their impact on government performance: Micro-level evidence from 113 countries

Cited by 76 publications

References 41 publications

Determinants of Public‐Sector Efficiency: Decentralization and Fiscal Rules

Determinants of Public‐Sector Efficiency: Decentralization and Fiscal Rules

Why Do Countries Respond Differently to COVID-19? A Comparative Study of Sweden, China, France, and Japan

Decentralization, Fiscal Independence, and Poverty in the Philippines

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