• Economics
• Published 2006
• DOI:10.1628/001522106x120659

New Evidence on the Effect of Fiscal Decentralization on the Size and Composition of Government Spending

@inproceedings{Fiva2006NewEO,
  title={New Evidence on the Effect of Fiscal Decentralization on the Size and Composition of Government Spending},
  author={Jon Hernes Fiva},
  year={2006}
}

• Jon Hernes Fiva

This paper adds to the literature by utilizing improved data on tax revenue decentralization to reexamine the relationship between fiscal decentralization and the size of government. An econometric analysis using panel data from 18 OECD countries shows that fiscal decentralization matters for both the size and the composition of government spending. Tax revenue decentralization is associated with a smaller public sector, while expenditure decentralization is associated with a larger public… CONTINUE READING

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