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  • 1
    Online Resource
    Online Resource
    Washington, D.C. :International Monetary Fund,
    UID:
    edoccha_9958108233102883
    Format: 1 online resource (31 p.)
    ISBN: 1-4755-5674-8 , 1-4983-4886-6
    Series Statement: IMF Working Papers
    Content: This paper explores the impact of fiscal decentralization on the efficiency of public service delivery. It uses a stochastic frontier method to estimate time-varying efficiency coefficients and analyzes the impact of fiscal decentralization on those efficiency coefficients. The findings indicate that fiscal decentralization can improve the efficiency of public service delivery but only under specific conditions. First, the decentralization process requires adequate political and institutional environments. Second, a sufficient degree of expenditure decentralization seems necessary to obtain favorable outcomes. Third, decentralization of expenditure needs to be accompanied by sufficient decentralization of revenue. Absent those conditions, fiscal decentralization can worsen the efficiency of public service delivery.
    Note: Description based upon print version of record. , Cover; Contents; I. Introduction; II. Literature Review and Theoretical Background; III. Empirical Analysis; A. Methodology; B. Data; Figure; 1. Share of Subnational Government Expenditure/Revenue; C. Efficiency Estimates; Tables; 1. Descriptive Statistics; 2. Stochastic Frontier Estimates of Public Service Efficiency; D. Direct Channel and Non-Linear Relationship; 3. Fiscal Decentralization and Public Expenditure Efficiency; E. Political and Institutional Conditions; 4. Fiscal Decentralization and Public Expenditure Efficiency (Non-linearity) , 5. Fiscal Decentralization and Political/Institutional Environments6. Fiscal Decentralization and Political/Institutional Environments (Sub-groups); F. Robustness; 7. Fiscal Decentralization and Public Expenditure Efficiency: Excluding Outliers; 8. Fiscal Decentralization and Public Expenditure Efficiency: Alternative Efficiency Estimates; 9. Fiscal Decentralization and Public Expenditure Efficiency: Absorbing Short-Term Fluctuations; 10. Fiscal Decentralizatiojn and Public Expenditure Efficiency: Alternative Political and Institutional Variables; G. Revenue Decentralization , 11. Revenue Decentralization: Baseline and Country-Specific Estimates12. Revenue Decentralization: Alternative Efficiency Estimates; 13. Revenue Decentralization: Excluding Outliers; IV. Conclusions and Policy Implications; 14. Revenue Decentralization: Political/Institutional Interactions; References; Annexes; I. Countries, Data Coverage, and Sources; II. Variables, Definition and Data Sources; III. Alternative Policy Outcome Variables
    Additional Edition: ISBN 1-4843-5111-8
    Language: English
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