The Relevance of the Decentralization Literature for Fiscal Policy Design

Muhammad Hamzah ()
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Muhammad Hamzah: Islamic Economics and Finance Research Group Faculty or Economics Universiti Kebangsaan Malaysia 43600 UKM Bangi Selangor Darul Ehsan Malaysia Fax: 603-8921 5760

Jurnal Ekonomi Malaysia, 2004, vol. 38, 125-139

Abstract: The main purpose of this study research how to manage the state in an Islamic economy plays can be realized by settling the balances between private interests and social interests to maintain the economic. The research followed Caliph Era and Recent Era. Caliph era perform this obligation is through the zakah (tithe) institution, which is an inseparable part of our faith. Therefor, tax to improve and broaden the revenue base on any criteria. Therefore, recent era theoretical argument fordecentralization, disadvantages of decentralization, important conditions for successfull decentralizationfiscal decencralization which are assignment of revenues and assignment of expenditures. Therefore, design of fiscal decentralization system which is expenditures, revenues, and inter- government transfer to the discussion.

Keywords: capital management hypothesis; earning management hypothesis; loan loss provision (search for similar items in EconPapers)
Date: 2004
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