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Fiscal Decentralization and Regional Disparity

Evidence from Cross-Section and Panel Data

Bibliographic Data

ID4957548
AuthorsChristian Lessmann (Technische Universität Dresden, corresponding author)
Year2009
Volume41
Issue10
Pages2455-2473
Publication date2009-10-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEnvironment and Planning A Economy and Space (JOURNAL)
Journal identifiersISSN: 0308-518X • E-ISSN: 1472-3409
PublisherSAGE Publications Inc (PUBLISHER)
DOI10.1068/a41296
OpenAlexW3122496766
LanguageEN
Citations received49
References cited35

The advantages and disadvantages of public sector decentralization are widely discussed in economics and political science. Some authors argue that decentralization leads to an optimal provision of public services and promotes economic growth, while others emphasize the dangers of competition between subnational governments, especially those associated with interregional redistribution. Using cross-section and panel data for twenty-three OECD countries, from 1982 to 2000, this paper empirically studies the impact of fiscal decentralization on regional disparities. It is found that a higher degree of decentralization is associated with lower regional disparities. Hence, poor regions experience no disadvantages from decentralization and, instead, appear to benefit

Decentralization · Development economics · Econometrics · Economic policy · Economic system · Economics · Economy · fiscal federalism · Macroeconomics · Market economy · Panel data · Political science · Politics · Public economics · Public sector · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization

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Unique citing works49
Citations per year3,06
Citation span2010 - 2026 (17)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 49

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