European Parliament Library

Decentralizing Spending More Than Revenue :, Does it Hurt Fiscal Performance?, Luc Eyraud, Lusine Lusinyan

In many countries the decentralization of spending responsibilities has outpaced the decentralization of revenue powers. Sub-national governments have then to rely on transfers from the center and borrowing to finance their spending. When this occurs, we find that the overall fiscal deficit tends to increase. This result is based on cross-country econometric evidence from OECD countries, and is particularly strong in the presence of regional disparities. Fiscal discipline can be strengthened by ensuring that sub-national taxing powers are adequate to meet spending obligations
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Vertical Fiscal Imbalance and Fiscal Performance; 1. Cost-Benefit Analysis of Vertical Imbalances in the Theoretical Literature; III. Measuring Vertical Fiscal Imbalances; 2. Vertical Fiscal Imbalance: Definition and Accounting Determinants; IV. Some Stylized Facts on Vertical Imbalances; 1. Vertical Fiscal Imbalance, Sub-national Own Revenue, and Expenditure; 2. Vertical Fiscal Imbalance: Level and Change; 3. Breakdown of the Annual Change in Vertical Fiscal Imbalances
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (61 p.)
Specific Material Designation
Form Of Item

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