Why countries are fiscally decentralizing

Arzaghi, Mohammad; Henderson, J. Vernon

doi:10.1016/j.jpubeco.2003.10.009

Cited by 279 publications

(254 citation statements)

References 21 publications

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“…5 We could allow preferences for central government services to differ across regions as in Stegarescu (2009) without obtaining different results. However, we choose to simply focus just on pure economic factors promoting fiscal decentralization, rather than relying on differences in preferences (see also Arzaghi and Henderson 2005). Also, central and local governments may also provide different components of the same function (e.g., local primary schools and national university) as it commonly happens in many developed countries.…”

Section: The Theoretical Frameworkmentioning

confidence: 99%

Can Fiscal Decentralization Alleviate Government Consumption Volatility?

2016

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A relevant mismatch between tax and expenditure decentralization characterizes many industrialized countries. The former is usually less pronounced than the latter, resulting in asymmetric fiscal decentralization arrangements. We investigate the nature of this asymmetry using a theoretical framework that explains why it is difficult to tackle it, despite a consensus on the benefits of a wellbalanced decentralization process. We find that asymmetry is intrinsic to fiscal decentralization, even in a scenario where clear advantages from well-developed decentralized systems arise. This implies that both empirical and theoretical contributions would benefit by taking into account the welfarereducing asymmetric nature of fiscal decentralization.

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Section: The Theoretical Frameworkmentioning

confidence: 99%

Can Fiscal Decentralization Alleviate Government Consumption Volatility?

2016

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“…allows one to differentiate the lower and upper levels (for example, across territories), vertical and horizontal bonds as well. It has been noted that the region's reproductive potential affects the competitiveness of a region and the autonomy of development in the decentralization process [1].…”

Section: A Principles Of Research Into the Structure Of Reproductionmentioning

confidence: 99%

Methodological approaches to study of region's reproductive potential

Yusupov¹,

Akhunov²,

Yangirov³

et al. 2017

Proceedings of the International Conference on Trends of Technologies and Innovations in Economic and Social Studies 2017

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Abstract-The authors searched for ways of increasing a region's reproductive potential and enhancing its involvement in inter-regional and international division of labor. The study is based on simultaneous examination of a region as functional and structural subsystems of national economy by methods of quantitative and qualitative analysis. The paper presents theoretical assumptions and methodological foundations of research into the reproductive potential in the framework of regional economic management regarding resource, dynamic and resulting components. The authors developed a conceptual approach to study of the reproductive potential including three inter-related groups of potentials: resources, factors and results of economic development, which allows one to consider the complex of in-line, torque and dynamic parameters and to carry out assessment by means of a graphical model. The authors proposed an expanded view of an aggregate potential: a latent potential (implicit and unmeasured potential value); an actual potential (power and size of economic system); a forecasted potential (reserves and unused opportunities). The authors identified features of the reproductive potential (consistency, controllability, built-up capacity, variability of sizes and borders), which allow defining it as a major subsystem of regional regulation. The authors described features of the region's reproductive potential: its specific structure, dual focus of operation, a significant role of import and export.

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“…20 See Panizza (1999) and Arzaghi and Henderson (2005). The endogenous variable ALLFEDDEM is a (0,1) variable.…”

Section: The Control Variable For British Colonial Origins Was Nearlymentioning

confidence: 99%