The relationship between fiscal federalism and fiscal discipline
Panel quantile regression approach
Bibliographic Data
| ID | 22233275 |
|---|---|
| Authors | Kayode Olaide (0000-0001-5010-8798, University of Johannesburg, corresponding author), Josine Uwilingiye (0000-0002-6419-4911, University of Johannesburg), Beatrice D Simo‐Kengne (0000-0002-4948-5868, University of Johannesburg) |
| Year | 2025 |
| Volume | 12 |
| Issue | 1 |
| Publication date | 2025-02-08 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Humanities and Social Sciences Communications (JOURNAL) |
| Journal identifiers | ISSN: 2662-9992 • E-ISSN: 2662-9992 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1057/s41599-025-04489-5 |
| OpenAlex | W4407249305 |
| Language | EN |
| Citations received | 1 |
| References cited | 24 |
In recent times, a strand of macro-stabilization experts has been expressing great concern about the move towards fiscal federalism being embraced by many countries over the past three decades. They argue that it could endanger fiscal discipline because it is incompatible with prudent fiscal management. However, some other experts disagree and believe the impact on fiscal discipline could be positive. But, despite the lack of unanimity in the theoretical discourse on the fiscal discipline impact of fiscal federalism, empirical studies on the relationship are still scarce and mixed in conclusions. Using a panel quantile regression estimation approach for a sample of twenty countries over the period 1996–2018, this study establishes that the impact of fiscal federalism on fiscal discipline may not be constant on the conditional mean of the fiscal discipline but varies along its conditional distribution. Moreover, it reveals that quality institutional framework and federalism, each improves the fiscal discipline impact of fiscal federalism, and that countries with a history of low fiscal discipline stand to benefit more from this. The policy implication of this is that in the design and operation of the fiscal federalism apparatus, policy decision-makers should take into consideration the fiscal discipline history of the country. The design of fiscal decentralization apparatus should be appropriately tailored towards each country’s peculiar characteristics and government fiscal stance. Also, it is essential that a quality institutional framework be put in place to support the fiscal decentralization apparatus
Decentralization · Econometrics · Economics · fiscal federalism · Panel data · Quantile regression · Regression · Regression analysis · Statistics · Corporate Taxation and Avoidance · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization · Mathematics
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An Essay on Fiscal Federalism
Regression Quantiles
What Determines the Quality of Institutions
Fiscal Decentralization and Intergovernmental Fiscal Relations
Partial fiscal decentralization and sub-national government fiscal discipline
On the link between fiscal decentralization and public debt in OECD countries
Beyond the Fiction of Federalism
Decentralization and Fiscal Discipline in Sub-national Governments
The Dilemma of Fiscal Federalism
| Unique citing works | 1 |
|---|---|
| Citations per year | 1 |
| Citation span | 2026 - 2026 (1) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 1 |