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Fiscal autonomy and quality of governance in OECD countries

Author

Listed:
  • David Bartolini

    (Department of Economics and Social Sciences Polytechnic University of Marche)

  • Raffaella Santolini

    (Department of Economics and Social Sciences Polytechnic University of Marche)

Abstract

Using a panel of 24 OECD countries, we study the link between the autonomy of sub-national governments and the quality of governance of a country. The results show that fiscal autonomy worsens citizens' perceptions of governance quality. In particular, the delegation of policy responsibilities to the regional level produces a robust negative effect on quality.

Suggested Citation

  • David Bartolini & Raffaella Santolini, 2013. "Fiscal autonomy and quality of governance in OECD countries," Economics Bulletin, AccessEcon, vol. 33(1), pages 706-713.
    • Handle: RePEc:ebl:ecbull:eb-13-00033
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    File URL: http://www.accessecon.com/Pubs/EB/2013/Volume33/EB-13-V33-I1-P67.pdf
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    References listed on IDEAS

    as
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    6. Seabright, Paul, 1996. "Accountability and decentralisation in government: An incomplete contracts model," European Economic Review, Elsevier, vol. 40(1), pages 61-89, January.
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    Cited by:

    1. Bartolini, David & Santolini, Raffaella, 2017. "Political institutions behind good governance," Economic Systems, Elsevier, vol. 41(1), pages 68-85.

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    More about this item

    Keywords

    Fiscal autonomy; Quality of governance; Fixed-effects vector decomposition estimator; Panel data analysis;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H1 - Public Economics - - Structure and Scope of Government

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