Fiscal Decentralization in Specific Areas of Government A Technical Note

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...

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Detalles Bibliográficos
Autores principales: Leonardo Letelier S, José Luis Sáez Lozano
Formato: artículo científico
Lenguaje:Inglés
Publicado: Centro de Investigación y Docencia Económicas, A.C. 2013
Materias:
Acceso en línea:http://www.redalyc.org/articulo.oa?id=32329969005
http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/82934
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author Leonardo Letelier S
José Luis Sáez Lozano
author_facet Leonardo Letelier S
José Luis Sáez Lozano
author_sort Leonardo Letelier S
collection Repositorio
description 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.
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spelling clacso-CLACSO829342022-03-22T16:08:02Z Fiscal Decentralization in Specific Areas of Government A Technical Note Leonardo Letelier S José Luis Sáez Lozano Economía y Finanzas Keywords political economy median voter fiscal federalism decentralization 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 2022-03-22T16:08:02Z 2022-03-22T16:08:02Z artículo científico http://www.redalyc.org/articulo.oa?id=32329969005 http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/82934 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
spellingShingle Economía y Finanzas
Keywords
political economy
median voter
fiscal federalism
decentralization
Leonardo Letelier S
José Luis Sáez Lozano
Fiscal Decentralization in Specific Areas of Government A Technical Note
title Fiscal Decentralization in Specific Areas of Government A Technical Note
title_full Fiscal Decentralization in Specific Areas of Government A Technical Note
title_fullStr Fiscal Decentralization in Specific Areas of Government A Technical Note
title_full_unstemmed Fiscal Decentralization in Specific Areas of Government A Technical Note
title_short Fiscal Decentralization in Specific Areas of Government A Technical Note
title_sort fiscal decentralization in specific areas of government a technical note
topic Economía y Finanzas
Keywords
political economy
median voter
fiscal federalism
decentralization
url http://www.redalyc.org/articulo.oa?id=32329969005
http://biblioteca-repositorio.clacso.edu.ar/handle/CLACSO/82934