Author: Timothy Besley Publisher: ISBN: Category : Central-local government relations Languages : en Pages : 56
Book Description
This paper takes a fresh look at the trade-off between centralized and decentralized provision of local public goods. The point of departure is to model a centralized system as one in which public spending is financed by general taxation, but districts can receive different levels of local public goods. In a world of benevolent governments, the disadvantages of centralization stressed in the existing literature disappear, suggesting that the case for decentralization must be driven by political economy considerations. Our political economy analysis assumes that under decentralization public goods are selected by locally elected representatives, while under a centralized system policy choices are determined by a legislature consisting of elected representatives from each district. We then study the role of taste heterogeneity, spillovers and legislative behavior in determining the case for centralization.
Author: Remy Prud'homme Publisher: World Bank Publications ISBN: Category : Central-local government relations Languages : en Pages : 43
Book Description
Demand for decentralization is strong in most parts of the world. This close look at the negative side effects of improperly appled decentralization is not an attack on decentralization but an effort to prevent its misapplication -- and to promote fuller understanding and wiser use of this potentially desirable policy.
Author: Charles R. Hankla Publisher: Edward Elgar Publishing ISBN: 1788972171 Category : Business & Economics Languages : en Pages : 192
Book Description
This book argues that fiscal federalism will consistently deliver on its governance promises only when democratic decentralization is combined with the integration of political parties. It formalizes this argument and, using new data on subnational political institutions, tests it with models of education, health, and infrastructure service delivery in 135 countries across 30 years. It also presents comparative case studies of Senegal and Nigeria. The book emphasizes that a “fine balance” in local governance can be achieved when integrated party structures compensate for the potential downsides of a decentralized state.
Author: Antonio Farfán-Vallespín Publisher: ISBN: Category : Languages : en Pages :
Book Description
This paper proposes a new perspective for studying decentralization by considering it as the unbundling of public goods provision. We define centralization as the bundled provision of public goods from different tiers (national, sub-national or local) by one single provider held accountable by the voters via elections. We define decentralization as the unbundled provision of public goods of different tiers by a different provider for each tier, each of them accountable to the voters via elections. This novel perspective allows us to identify two new effects of decentralization. The first effect provides an efficiency advantage to centralization because the central provider can reallocate resources among the different tiers of public goods after shocks to the prices of these public goods occur. The second effect shows that unbundling the provision of public goods increases electoral control. Finally, we compare both effects and find that centralization will dominate over decentralization when public goods prices are more volatile and the option of transferring resources among tiers of public goods acts as an insurance device. Decentralization dominates when the environment is more stable and voters can monitor the providers of public goods more tightly.
Author: Fabio Fiorillo Publisher: ISBN: Category : Languages : en Pages : 28
Book Description
The aim of the paper is to analyze a model of local public good provision with positive interjurisdictional spillovers comparing decentralized and centralized system. As in the recent Second Generation Theory (SGT) of fiscal federalism (Seabright 1996; Lockwood 2002, 2006; Besley and Coate 2003; Weingast 2009), we also adopt a political economy approach, assuming different behaviours of political leaders (Leviathan and non-Leviathan). The main contribution of the paper is to consider two relevant aspects neglected by the political economy models: the size of local jurisdictions and the explicit definition of the rent-seeking behaviour. Moreover, modelling interregional externalities as a mechanism contributing to lowering the production cost of the public good in each region, a different trade-off - from the traditional and new theory of fiscal federalism - is proposed in order to compare decentralized versus centralized solution: the gains from internalizing externalities and the losses of freeriding advantages, which may differ with regional size and preferences for the public good. Given this general framework, the convenience of decentralization versus centralization mainly depends on the interaction among these factors: i) the free-riding gains exploiting positive externalities; ii) the gains of internalizing externalities; iii) the degree of preferences heterogeneity; iv) the implicit transfers ('cross subsidization') across different regions. To summarize, from a positive viewpoint, decentralization should not be necessarily pursued only in the absence of externalities, but also with high spillovers. The key insight of this result is represented by different size of regions, which may determine an asymmetry among citizens' responses concerning the best institutional setting.
Author: Jean-Paul Faguet Publisher: Oxford University Press, USA ISBN: 0198737505 Category : Business & Economics Languages : en Pages : 352
Book Description
Is decentralisation good for development? This book explains when the answer is 'Yes' and when it is 'No'. It shows how decentralisation can be designed to drive development forward, and focuses on the institutional incentives that can strengthen democracy, boost economies, and improve public sector performance.
Author: Timothy Besley
Author: Timothy Besley
Author: Timothy J. Besley
Author: Remy Prud'homme
Author: Jung Min Kim
Author: Charles R. Hankla
Author: Antonio Farfán-Vallespín
Author: Fabio Fiorillo
Author: Jean-Paul Faguet
Author: Mark Gradstein