Fiscal Federalism and Long-Run Macroeconomic Performance

Lars Feld and Jan Schnellenbach

International Center for Public Policy Working Paper Series, at AYSPS, GSU from International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University

Abstract: In this paper, we offer both a broad survey of the literature on fiscal federalism and long-run economic performance, and a detailed report of some of our own recent studies in this field. We look at the difference between study types (cross-country versus single-country studies), and at the relevance of the broader institutional framework into which fiscal decentralization is embedded. We also look into structural change and intergovernmental transfers as a detailed mechanism through which federalism may have an impact on aggregate economic performance.It turns out that fiscal decentralization has no robust effect on growth, but the evidence hints at a positive effect on overall productivity, conditional on the broader institutional framework.

Keywords: fiscal federalism; scal decentralization; growth; economic performances (search for similar items in EconPapers)
Pages: 34 pages
Date: 2010-02-01
New Economics Papers: this item is included in nep-mac and nep-pbe
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:ays:ispwps:paper1009

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