Decentralised Government in an Integrating World: by Dan Stegarescu

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By Dan Stegarescu

The booklet deals a accomplished empirical research of the determinants of alterations within the distribution of expenditure and revenue-raising powers between economic ranges in OECD nations. utilizing a brand new indicator of monetary decentralisation which money owed for subnational decision-making autonomy, universal decentralisation developments are investigated. Then, empirical proof from panel analyses is equipped for the position of prices, personal tastes and associations in explaining economic federal buildings, and for the influence of financial and political integration at the measure of presidency decentralisation, really between ecu nations. eventually, the historic adventure of Germany is used to discover long term advancements within the public area.

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Extra info for Decentralised Government in an Integrating World: Quantitative Studies for OECD Countries (ZEW Economic Studies)

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Just to give an example, in Norway, local governments choose de facto the same maximum local income tax rate, although, in principle, variation is allowed. 4), we consider this tax as “potentially” autonomous (b). However, note that for certain countries the data allows no distinction between the different tiers of sub-central government. On the other hand, Australian states themselves are highly centralised, granting no real fiscal autonomy to their municipalities. 2: Taxes of sub-central levels of government according to the degree of autonomy, 2001 Country Lev.

See also Wrede (2004) for a more recent contribution. 46 3 Costs, Preferences, and Institutions governments. Therefore, tax collusion may imply the transfer of taxing powers to the central government, which then imposes a uniform tax and shares the revenues with the lower levels of government either through vertical grants or other explicit rules of tax sharing. Fiscal equalisation payments between subnational governments represent a further option. Despite centralisation of public funds, lower level governments may retain full spending autonomy.

Also, the shift from the positive to the regulatory state observed since 44 See OECD (2003). 6 Discussion and Conclusions 39 the late 1970s45 which implies increasing recourse of central governments to rules, norms, and minimum quality standards, is not captured by fiscal data. However, in comparison to conventional measures, indicators accounting for decision-making structures have the definite advantage of providing a better distinction between real fiscal decentralisation and sheer revenue effects in most cases.

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