In Government We Trust: The Role of Fiscal Decentralization

Ligthart, Jenny E.; Oudheusden, Peter van

doi:10.2139/ssrn.1865728

Cited by 112 publications

(25 citation statements)

References 29 publications

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“…A growing number of household surveys typically have shown increased citizen satisfaction with decentralized delivery of public services (e.g., Hellman et al ., for Indonesia; Diaz‐Serrano and Rodríguez‐Pose, for European countries). Similarly, other studies find that decentralization is associated with improved citizens’ feelings of trust in government‐related institutions (Ligthart and van Oudheusden, for OECD countries). Finally, some recent contributions have focused on the implications of decentralization for happiness.…”

Section: Economic and Fiscal Consequences Of Fiscal Decentralizationmentioning

confidence: 57%

The Impact of Fiscal Decentralization: A Survey

Martínez-Vázquez

Peñas

Sacchi

2016

Journal of Economic Surveys

261

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In this paper, we offer a comprehensive and updated review of the impact of fiscal decentralization on the economy, society and politics. Our first target is the examination of two crucial and yet unsolved issues in the empirical literature on decentralization: the proper measurement of decentralization itself and its potential endogeneity in econometric estimates. Then, we discuss the main existing findings on the effects of decentralization on a relevant list of socio-economic issues. The impact of fiscal decentralization reforms on political institutions and public policies is also considered. Complete answers on the impact of fiscal decentralization are not likely to be certain but, overall, there are reasons to be optimistic about the net positive result. Our survey by necessity has to be selective but it presents a balanced view of what is known and what is not yet known opening room for further research and practice on fiscal decentralization.

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Section: Economic and Fiscal Consequences Of Fiscal Decentralizationmentioning

confidence: 57%

The Impact of Fiscal Decentralization: A Survey

Martínez-Vázquez

Peñas

Sacchi

2016

Journal of Economic Surveys

261

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“…Alderman (2002) suggests that welfare transfers in Albania are better targeted because they are decided by local officials. Ligthart and Van Oudheusden (2011) show that fiscal decentralization increases the level of trust the citizens have in government. Finally, Borge et al (2004) show, using a decentralization reform in Norway, that when spending discretion is decentralized it suits better local demand.…”

Section: Allocationmentioning

confidence: 98%

Fiscal Decentralization - A Survey of the Empirical Literature

Reingewertz

2014

SSRN Journal

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“…In public policy literature, government effectiveness is predominantly incorporated to the analysis (see e.g. Afonso et al, 2010;Butkiewicz and Yanikkaya, 2011;Ligthart and van Oudheusden, 2015). We employ government effectiveness to proxy institutional quality in our models, but in Table 5 Taken together, the results show that higher ratings allow a favourable environment for borrowing.…”

Section: 2 M a I N F I N D I N G Smentioning

confidence: 99%

The role of sovereign credit ratings in fiscal discipline

Duygun

Öztürk

Shaban

2016

Emerging Markets Review

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This paper investigates several aspects of the relationship between sovereign credit ratings and fiscal discipline. The analysis of over one thousand country-year observations for 93 countries during the 1999-2010 period reveals that a country's debt level is likely to increase with higher ratings, confirming the existence of pro-cyclicality and path dependence of ratings. In addition, the study finds no evidence to support the theory of Political Business Cycle, which implies that political ambitions may lead to fiscal worsening following a rating upgrade. The study findings further demonstrate that institutional quality is an important factor in the ratings-fiscal discipline nexus.

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In Government We Trust: The Role of Fiscal Decentralization

Cited by 112 publications

References 29 publications

The Impact of Fiscal Decentralization: A Survey

The Impact of Fiscal Decentralization: A Survey

Fiscal Decentralization - A Survey of the Empirical Literature

The role of sovereign credit ratings in fiscal discipline

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