Determinants of Public‐Sector Efficiency: Decentralization and Fiscal Rules

Michael Christl, Monika Köppl‐Turyna and Dénes Kucsera
Authors registered in the RePEc Author Service: Monika Irena Köppl-Turyna

Kyklos, 2020, vol. 73, issue 2, 253-290

Abstract: This paper investigates the determinants of public‐sector efficiency, in particular the role of fiscal decentralization and fiscal rules. For 23 European countries over the period from 1995 to 2015, we construct a measure of public‐sector performance consisting of nine distinct indices for each area of public policy, such as administration, health education, economic performance, security and infrastructure. We use several efficiency techniques, e.g., free disposal hull and order‐m, and investigate input‐and output‐oriented efficiency in the public sector. We analyse in depth the impact of fiscal decentralization and fiscal rules on public‐sector efficiency. We conclude that, whereas decentralization fosters efficiency, fiscal rules have no effect. Moreover, fiscal rules, when combined with decentralization, may harm efficiency, which is consistent with the ratchet effect.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://doi.org/10.1111/kykl.12224

Related works:
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:kyklos:v:73:y:2020:i:2:p:253-290

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0023-5962

Access Statistics for this article

Kyklos is currently edited by Rene L. Frey

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