Resource title

New evidence on fiscal decentralization and the size of government

Resource image

image for OpenScout resource :: New evidence on fiscal decentralization and the size of government

Resource description

This paper adds to the literature by utilizing improved data on tax revenue decentralization to re-examine the relationship between fiscal decentralization and the size of government. An econometric analysis using panel data from 18 OECD countries shows that fiscal decentralization matters for both the size and composition of government spending. Tax revenue decentralization is associated with a smaller public sector, while expenditure decentralization is associated with a larger public sector. The former effect seems to be driven by a reduction in social security transfers, while the latter effect seems to be driven by increased government consumption.

Resource author

Jon H. Fiva

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19079

Resource license

Adapt according to the presented license agreement and reference the original author.