DECENTRALISED PROVISION OF QUASI-PRIVATE GOODS: THE CASE OF COLOMBIA

Ana Iregui

No 2251, Borradores de Economia from Banco de la Republica

Abstract: This paper quantifies the welfare effects of decentralisation in Colombia, using a multiregional CGE model. We investigate to what extent will the Colombian population be better off when goods such as health and education, are delivered locally as against centrally. A provision scheme based on the median voter is considered. According to the results, the provision of health and education by regional governments improves the welfare of the Colombian population as a whole, since regional governments provide goods and services in a way that better caters to local preferences. More importantly, these welfare gains vary from 1.3% to 2.3% of GDP, a substantial magnitude especially when compared with the efficiency gains associated to the tax reforms of the early nineties.

Keywords: Decentralisation (search for similar items in EconPapers)
JEL-codes: D58 (search for similar items in EconPapers)
Pages: 35
Date: 2002-03-31
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http://www.banrep.gov.co/docum/ftp/borra203.pdf

Related works:
Journal Article: Decentralised provision of quasi-private goods: The case of Colombia (2005)
Working Paper: Decentralised Provision of Quasi- Private Goods: The Case of Colombia (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:col:000094:002251

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