An Empirical Analysis of the Relationship between Fiscal Decentralization and the Size of Government

Silvia Golem and Lena Malesevic Perovic

Czech Journal of Economics and Finance (Finance a uver), 2014, vol. 64, issue 1, 30–58

Abstract: The goal of this paper is to investigate the relationship between fiscal decentralization and the size of government. Using a pooled mean group estimator, which has rarely been applied in this context, we analyze a set of 23 OECD countries over the period 1970–2008. In contrast to previous studies we use an improved measure of fiscal decentralization, which effectively quantifies the degree of sub-national autonomy. Our results suggest that, in the long run, fiscal decentralization decreases the size of government.

Keywords: fiscal decentralization; government size; pooled mean group (search for similar items in EconPapers)
JEL-codes: C33 H11 H70 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://journal.fsv.cuni.cz/storage/1291_30-58---golem.pdf (application/pdf)

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:fau:fauart:v:64:y:2014:i:1:p:30-58

Access Statistics for this article

More articles in Czech Journal of Economics and Finance (Finance a uver) from Charles University Prague, Faculty of Social Sciences Contact information at EDIRC.
Bibliographic data for series maintained by Natalie Svarcova ().