How does asymmetric decentralization affect local fiscal performance?

Evrim Tan and Anna Avshalom-Uster

Regional Studies, 2021, vol. 55, issue 6, 1071-1083

Abstract: In 2014, Israel adopted asymmetric decentralization by granting different degrees of autonomy to local governments according to their fiscal and administrative performances. Employing a quasi-experimental research design on a panel of Israeli local governments observed between 2010 and 2017, we analyse the impact of asymmetric decentralization on the fiscal performances of local governments with different fiscal and administrative autonomies. The findings suggest that the asymmetric decentralization design in Israel enhanced the share of own-source revenues and tax collection levels at more autonomous local governments. However, we cannot discern a significant impact on the budget balance and municipal debts.

Date: 2021
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DOI: 10.1080/00343404.2020.1861241

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