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The politics of intergovernmental transfers and local government deficits: Theory and evidence

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  • Pablo J. Sanguinetti

    (Universidad Torcuato Di tella)

Abstract

The purpose of this paper is twofold. First, we present a model of decentralized fiscal policy-making where a "coordination failure" problem arises. Second, we make an effort in order to empirically test this approach by developing an empirical investigation based on the recent experience of two countries: Argentina and Great Britain.

Suggested Citation

  • Pablo J. Sanguinetti, 1993. "The politics of intergovernmental transfers and local government deficits: Theory and evidence," Estudios Económicos, El Colegio de México, Centro de Estudios Económicos, vol. 8(1), pages 87-109.
    • Handle: RePEc:emx:esteco:v:8:y:1993:i:1:p:87-109
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    File URL: https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/291/294
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    References listed on IDEAS

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    1. Tabellini, Guido & Alesina, Alberto, 1990. "Voting on the Budget Deficit," American Economic Review, American Economic Association, vol. 80(1), pages 37-49, March.
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    5. Calvo, Guillermo A, 1988. "Servicing the Public Debt: The Role of Expectations," American Economic Review, American Economic Association, vol. 78(4), pages 647-661, September.
    6. Edwards, Sebastian & Tabellini, Guido, 1991. "Explaining fiscal policies and inflation in developing countries," Journal of International Money and Finance, Elsevier, vol. 10(1, Supple), pages 16-48, March.
    7. Mr. James P. F. Gordon & Mr. Tamim Bayoumi, 1991. "The Determinants and Efficiency of Local Authority Spending in England," IMF Working Papers 1991/009, International Monetary Fund.
    8. Lucas, Robert Jr., 1986. "Principles of fiscal and monetary policy," Journal of Monetary Economics, Elsevier, vol. 17(1), pages 117-134, January.
    9. Weingast, Barry R & Shepsle, Kenneth A & Johnsen, Christopher, 1981. "The Political Economy of Benefits and Costs: A Neoclassical Approach to Distributive Politics," Journal of Political Economy, University of Chicago Press, vol. 89(4), pages 642-664, August.
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    Cited by:

    1. Juan Pablo Nicolini & Josefina Posadas & Juan Sanguinetti & Pablo Sanguinetti & Mariano Tommasi, 2002. "Decentralization, Fiscal Discipline in Sub-National Governments and the Bailout Problem: The Case of Argentina," Research Department Publications 3160, Inter-American Development Bank, Research Department.
    2. Fausto Hernández Trillo & Alberto Díaz Cayeros & Rafael Gamboa González, 2002. "Fiscal Decentralization in Mexico: The Bailout Problem," Research Department Publications 3143, Inter-American Development Bank, Research Department.

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