More Than You Can Handle: Decentralization and Spending Ability of Peruvian Municipalities

Norman Loayza (), Iamele Rigolini and Oscar Calvo-González

Economics and Politics, 2014, vol. 26, issue 1, 56-78

Abstract: type="main" xml:id="ecpo12026-abs-0001">

This article builds on a comprehensive dataset for Peru that merges municipal fiscal accounts with information about municipalities’ characteristics such as population, poverty, education, and local politics to analyze the leading factors affecting the ability of municipalities to execute the allocated budget. According to the existing literature and the Peruvian context, we divide these factors into four categories: the budget size and allocation process; local capacity; local needs; and political economy constraints. While we do find that all four factors affect decentralization, the largest determinant of spending ability is the adequacy of the budget with respect to local capacity. The results confirm the need for decentralization to be implemented gradually over time in parallel with strong capacity building efforts.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
http://hdl.handle.net/10.1111/ecpo.2014.26.issue-1 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: More than You Can Handle Decentralization and Spending Ability of Peruvian Municipalities (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ecopol:v:26:y:2014:i:1:p:56-78

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0954-1985

Access Statistics for this article

Economics and Politics is currently edited by Peter Rosendorff

More articles in Economics and Politics from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().