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Are local public services better delivered in more autonomous regions? Evidence from European regions using a dose-response approach

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  • Filippetti, Andrea
  • Cerulli, Giovanni

Abstract

Does regional autonomy lead to better local public services? We investigate this issue using measures of public service performance and autonomy at the region level in 171 European regions. We introduce a novel dose-response approach which identifies the pattern of the effect of regional autonomy on the performance of public services. The relationship between the level of regional autonomy and the provision of local public services exhibits a u-shape: both low and high autonomy lead to better local public services. This speaks against the presence of one optimal level of autonomy and policy recommendations based on the view that more decentralisation is always desirable. It shows that different institutional settings can be economically viable and efficient.

Suggested Citation

  • Filippetti, Andrea & Cerulli, Giovanni, 2018. "Are local public services better delivered in more autonomous regions? Evidence from European regions using a dose-response approach," LSE Research Online Documents on Economics 100770, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:100770
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    2. Rodríguez-Pose, Andrés & Vidal-Bover, MIquel, 2022. "Unfunded mandates and the economic impact of decentralisation. When finance does not follow function," CEPR Discussion Papers 17613, C.E.P.R. Discussion Papers.
    3. Enrique J. Buch‐Gómez & Roberto Cabaleiro‐Casal, 2020. "Turnout, political strength, and cost efficiency in Spanish municipalities of the autonomous region of Galicia: Evidence from an alternative stochastic frontier approach," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 533-553, June.
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    More about this item

    Keywords

    decentralization; dose-response approach; European regions; quality of institutions; Quality of local public services; regional autonomy;
    All these keywords.

    JEL classification:

    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General

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