The Impact of Fiscal Decentralisation on Education and Other Types of Spending
The Impact of Fiscal Decentralisation on Education and Other Types of Spending
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2007
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MBIfG Discussion Paper; 07/8
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Abstract
Scholars have argued about the impact of fiscal decentralisation on public spending for a long time without coming to any firm theoretical and empirical conclusions. In contrast to earlier studies, this paper looks at the impact of fiscal decentralisation across different types of spending. It is argued that the impact varies and can be positive or negative, depending on the distribution of spending across levels of government. A simple model is developed to show that local competition in the provision of local/regional public goods (e.g. education) can result in higher spending. However, when public goods are provided at the national level (e.g. pension policies), fiscal decentralisation encourages local policy pre-emption, thus lowering spending. The model is tested empirically by means of a pooled time series analysis of education, social spending and public spending in OECD countries from 1980 to 2001.
Summary in another language
Die Debatte um den Einfluss von fiskalischer Dezentralisierung auf öffentliche Ausgaben wird schon seit geraumer Zeit geführt, jedoch sind eindeutige und belastbare theoretische oder empirische Befunde schwer zu erzielen. In Abgrenzung und Fortentwicklung vorangegangener Studien untersucht das vorliegende Papier den Einfluss fiskalischer Dezentralisierung auf verschiedene Typen öffentlicher Ausgaben. Es zeigt sich, dass der Einfluss je nach betrachtetem Ausgabentypus positiv oder negativ sein kann. Präsentiert wird ein einfaches Modell, das diese unterschiedlichen Befunde erklärt. Es wird argumentiert, dass ein lokaler Überbietungswettbewerb in der Bereitstellung öffentlicher Güter bei fiskalischer Dezentralisierung zu insgesamt höheren Ausgaben führen kann, wenn diese öffentlichen Güter vorrangig auf der lokalen Ebene bereitgestellt werden (z.B. Bildung). Im Gegensatz dazu führt fiskalische Dezentralisierung bei nationalen öffentlichen Gütern (z.B. Rentenausgaben) zu „local policy pre-emption“ und damit zu einem insgesamt negativen Ausgabeneffekt. Das Modell wird durch eine gepoolte Zeitserienanalyse von OECD-Ländern der Jahre 1980 bis 2001 empirisch getestet.
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320 Politics
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BUSEMEYER, Marius R., 2007. The Impact of Fiscal Decentralisation on Education and Other Types of SpendingBibTex
@techreport{Busemeyer2007Impac-36313, year={2007}, series={MBIfG Discussion Paper}, title={The Impact of Fiscal Decentralisation on Education and Other Types of Spending}, number={07/8}, url={http://www.mpifg.de/pu/mpifg_dp/dp07-8.pdf}, author={Busemeyer, Marius R.} }
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