Fiscal Decentralisation & Economic Growth in High-Income OECD Countries

Ulrich Thiessen

No 1, Economics Working Papers from European Network of Economic Policy Research Institutes

Abstract: Following a brief review of the benefits and shortcomings of fiscal decentralisation, the paper attempts to empirically analyse for high-income OECD countries the relationship between per capita economic growth, capital formation and total factor productivity growth, on the one hand, and indicators of fiscal decentralisation, on the other hand. The evidence appears to be consistent with the hypothesis that the benefits of fiscal decentralisation on economic growth and capital formation are limited. However, satisfactory indicators of fiscal decentralisation are yet not existing so that the results are subject to serious qualifications.

JEL-codes: C33 H77 O47 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2001-01
New Economics Papers: this item is included in nep-dev, nep-eec and nep-pub
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Citations: View citations in EconPapers (4)

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