Handbook of Multilevel Finance 2015
DOI: 10.4337/9780857932297.00015
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The assignment of functions to decentralized government: from theory to practice

Abstract: ISBN 978 0 85793 228 0 (cased) ISBN 978 0 85793 229 7 (eBook)

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Cited by 15 publications
(21 citation statements)
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“…For example: (a) raising debt at the local level would entail higher regional costs but benefits for such stabilization would spill beyond regional borders, resulting in too little stabilization being effected; (b) monetization of local debt will create inflationary pressures and pose a threat for price stability; (c) currency stability requires that both monetary and fiscal policy functions be carried out by the centre alone; and (d) cyclical shocks are usually national in scope (symmetric across all regions) and therefore require a national response. Although these views have been challenged by several writers (Dafflon, 1992;Gramlich, 2001;Walsh, 1992) on theoretical and empirical grounds, they continue to command considerable following. Tanzi (1995) has argued that decentralization of the public sector, especially in developing countries, poses significant risks for the aggravation of macroeconomic problems.…”
Section: Conceptual Foundations Of Fiscal Decentralizationmentioning
confidence: 94%
“…For example: (a) raising debt at the local level would entail higher regional costs but benefits for such stabilization would spill beyond regional borders, resulting in too little stabilization being effected; (b) monetization of local debt will create inflationary pressures and pose a threat for price stability; (c) currency stability requires that both monetary and fiscal policy functions be carried out by the centre alone; and (d) cyclical shocks are usually national in scope (symmetric across all regions) and therefore require a national response. Although these views have been challenged by several writers (Dafflon, 1992;Gramlich, 2001;Walsh, 1992) on theoretical and empirical grounds, they continue to command considerable following. Tanzi (1995) has argued that decentralization of the public sector, especially in developing countries, poses significant risks for the aggravation of macroeconomic problems.…”
Section: Conceptual Foundations Of Fiscal Decentralizationmentioning
confidence: 94%
“…No obstante lo anterior, la propia literatura económica reconoce que la problemática en torno a la asignación de funciones entre niveles de gobierno, no se agota en la definición de aquello que podríamos llamar la asignación óptima. Definir una solución implica abordar un aspecto crítico en la organización del Estado, uno en el cual hay distribución de poder y por lo tanto implicancias políticas evidentes (Dafflon, 2006). El debate en torno a cómo se distribuye este poder contiene ingredientes históricos, culturales y por cierto también económicos.…”
Section: El Caso Generalunclassified
“…One of the first sets of criteria for reassignment of functions and for coordination among the government ties was proposed by Wittmann (1973, as cited in Dafflon, 2006. This set of criteria has been adopted in Austria, Switzerland, and recently in transitional economies (Dafflon, 2006). This set of criteria can be categorized into three subgroups: (i) general policy criteria, (ii) financial and technical criteria, and (iii) efficiency criteria.…”
Section: Theoretical Foundations For Expenditure Assignmentsmentioning
confidence: 99%