An Empirical Analysis of the Relationship between Fiscal Decentralization and the Size of Government
Journal Title: Finance a uver - Year 2014, Vol 64, Issue 1
Abstract
The goal of this paper is to investigate the relationship between fiscal decentralization and the size of government. Using a pooled mean group estimator, which has rarely been applied in this context, we analyze a set of 23 OECD countries over the period 1970–2008. In contrast to previous studies we use an improved measure of fiscal decentralization, which effectively quantifies the degree of sub-national autonomy. Our results suggest that, in the long run, fiscal decentralization decreases the size of government.
Authors and Affiliations
Silvia Golem, Lena Malesevic Petrovic
Keywords
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- EP ID EP297078
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