A Comprehensive Analysis of Expenditure Decentralization and of the Composition of Local Public Spending. Issue 1 (2nd January 2016)

• Record Type: Journal Article
• Authors: Sacchi, Agnese; Salotti, Simone
• Is Part Of: Regional studies. Volume 50:Issue 1(2016)
• Page Start: 93
• Page End: 109
• Publication Date: 2016-01-02
• Subjects: Fiscal decentralization -- Classification of the Functions of Government (COFOG) -- Local revenue -- Macroeconomics -- Political institutions; 财政分权 -- 政府功能分类 (COFOG) -- 地方税收 -- 总体经济 -- 政治制度; Décentralisation fiscale -- Classification des fonctions administratives publiques -- Revenu local -- Macroéconomie -- Institutions politiques; Fiskale Dezentralisierung -- Klassifikation der Aufgabenbereiche des Staates (COFOG) -- Lokale Einnahmen -- Makroökonomie -- Politische Institutionen; Descentralización fiscal -- Clasificación de las funciones de las administraciones públicas -- Ingresos locales -- Macroeconomía -- Instituciones políticas; E020 -- H750 -- H760 -- H770; Regional planning -- Periodicals; Regional planning -- Great Britain -- Periodicals; 307.14
• DOI: 10.1080/00343404.2014.893387
• Languages: English
• ISSNs: 0034-3404

Abstract

Abstract : Sacchi A. and Salotti S. A comprehensive analysis of expenditure decentralization and of the composition of local public spending, Regional Studies . Many industrialized countries have recently implemented fiscal decentralization reforms assigning more spending responsibility to sub-national governments. This paper investigates the causes of the decentralization of different categories of public expenditure in 19 developed countries over the period 1980–2006. Different models for each of the spending functions under analysis are estimated adopting a general-to-specific empirical approach. Results confirm existing findings on the negative link between regional income disparities and expenditure decentralization. A similarly negative relationship is found for a set of demographic variables, leading to the conclusion that macroeconomic and, more importantly, political factors are responsible for the recent increase in decentralization. Finally, the analysis is completed by a study of the factors driving sub-national expenditure composition, with political and demographic changes emerging as the most important determinants.