Fiscal Decentralization in Specific Areas of Government A Technical Note

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Main Author: Leonardo Letelier S
Format: Artículo científico
Language:en
Published: Centro de Investigación y Docencia Económicas, A.C. 2013
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author Leonardo Letelier S
author_facet Leonardo Letelier S
contents Fiscal Decentralization in Specific Areas of Government A Technical Note Leonardo Letelier S José Luis Sáez Lozano Economía y Finanzas Keywords median voter decentralization political economy fiscal federalism This study makes a contribution in two basic areas. First, it sets up a model which combines efficiency as well as political economy aspects in explaining the degree of fiscal decentralization. It innovates in making explicit the benefits from better informed politicians and policy makers (Von Hayek effect) and the potential cost push effect on public services and public goods (Scale Effect) resulting from decentralization. It takes advantage of previous literature in recognizing the extent of the ideological distance between the local and the national median voter as a third factor worth considering in the social cost benefit analysis of decentralization. Second, the aforementioned effects are put into the context of specific functional areas of government, each of them having a particular set of characteristics which lead to a different degree of decentralization. The net outcome will be the result of combining the rent seeking orientation of the central government with the particular median voter demand for each different public good. 2013 artículo científico 1665-2045 https://www.redalyc.org/articulo.oa?id=32329969005 en http://www.redalyc.org/revista.oa?id=323 Economía Mexicana. Nueva Época application/pdf Centro de Investigación y Docencia Económicas, A.C. Economía Mexicana. Nueva Época (México) Num.2 Vol.XXII
format Artículo científico
id redalyc_32329969005
institution Redalyc
language en
publishDate 2013
publisher Centro de Investigación y Docencia Económicas, A.C.
spellingShingle Fiscal Decentralization in Specific Areas of Government A Technical Note
Leonardo Letelier S
Economía y Finanzas
Keywords
median voter
decentralization
political economy
fiscal federalism
Fiscal Decentralization in Specific Areas of Government A Technical Note Leonardo Letelier S José Luis Sáez Lozano Economía y Finanzas Keywords median voter decentralization political economy fiscal federalism This study makes a contribution in two basic areas. First, it sets up a model which combines efficiency as well as political economy aspects in explaining the degree of fiscal decentralization. It innovates in making explicit the benefits from better informed politicians and policy makers (Von Hayek effect) and the potential cost push effect on public services and public goods (Scale Effect) resulting from decentralization. It takes advantage of previous literature in recognizing the extent of the ideological distance between the local and the national median voter as a third factor worth considering in the social cost benefit analysis of decentralization. Second, the aforementioned effects are put into the context of specific functional areas of government, each of them having a particular set of characteristics which lead to a different degree of decentralization. The net outcome will be the result of combining the rent seeking orientation of the central government with the particular median voter demand for each different public good. 2013 artículo científico 1665-2045 https://www.redalyc.org/articulo.oa?id=32329969005 en http://www.redalyc.org/revista.oa?id=323 Economía Mexicana. Nueva Época application/pdf Centro de Investigación y Docencia Económicas, A.C. Economía Mexicana. Nueva Época (México) Num.2 Vol.XXII
title Fiscal Decentralization in Specific Areas of Government A Technical Note
topic Economía y Finanzas
Keywords
median voter
decentralization
political economy
fiscal federalism
url https://www.redalyc.org/articulo.oa?id=32329969005