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

Format:

Book

Government document

Author/Creator:

Eyraud, Luc.

Contributor:

Lusinyan, Lusine.

Series:

IMF Working Papers; Working Paper ; No. 2011/226

IMF Working Papers

Language:

English

Subjects (All):

Expenditures, Public--Econometric models.

Expenditures, Public.

Fiscal policy--OECD countries--Econometric models.

Fiscal policy.

Fiscal policy--Econometric models.

Physical Description:

1 online resource (61 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2011.

Language Note:

English

Summary:

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.

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

3. Contributions to the Change in the Vertical Fiscal Imbalance1. Granger Non-Causality Test Results; 4. Fiscal Performance and Vertical Fiscal Imbalance; V. Econometric Evidence; A. Model Specification; B. Main Results; 5. Potential Fiscal Gains from VFI Reduction; 2. Vertical Fiscal Imbalance and Fiscal Performance; 3. Vertical Fiscal Imbalance and Fiscal Performance: Selected Robustness Checks; C. Robustness Analysis; 4. Vertical Fiscal Imbalance, Government Expenditure, and Government Revenue; VI. Conclusion and Policy Implications; Data Sources and Definitions

1. List of Countries and Data Availability2. List of Variables, Definitions, and Sources; References; Footnotes

Notes:

Description based upon print version of record.

Includes bibliographical references.

Description based on online resource; title from PDF title page (ebrary, viewed September 24, 2014).

ISBN:

9786613873149

9781463981570

1463981570

9781463949426

1463949421

9781283560696

1283560690

9781463986162

1463986165