Economic Integration and Fiscal Decentralization: Evidence from OECD Countries


Stegarescu, Dan


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URL: http://ub-madoc.bib.uni-mannheim.de/935
URN: urn:nbn:de:bsz:180-madoc-9357
Document Type: Working paper
Year of publication: 2004
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: F15 H72 H77 ,
Subject headings (SWD): Europäische Union , Europäische Integration , Dezentralisation , Wirtschaftliche Integration
Abstract: Drawing on recent work on the creation and breakup of countries, this paper examines the impact of economic and political integration on the vertical government structure. It argues that by increasing the market size and the benefits from the decentralized provision of public goods, integration might have triggered the recent process of fiscal decentralization in OECD countries. Based on a theoretical framework, the empirical panel analysis relates the degree of public sector decentralization to economic and European integration, controlling for inter-regional heterogeneity, economies of scale, and institutions. The results found mostly support a decentralizing effect of economic and European integration, particularly in the context of preference heterogeneity, whereas participation of sub-national governments in central decision-making is associated with increasing centralization.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Stegarescu, Dan (2004) Economic Integration and Fiscal Decentralization: Evidence from OECD Countries. Open Access [Working paper]
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