Fiscal decentralization and public sector efficiency: Evidence from OECD countries

Antonis Adam, Manthos Delis () and Pantelis Kammas ()

MPRA Paper from University Library of Munich, Germany

Abstract: This paper empirically examines the relationship between fiscal decentralization and public sector efficiency. A country-level dataset is used to measure public sector efficiency in delivering education and health services and the new indices are regressed on well-established decentralization measures. The analysis is carried out for 21 OECD countries, between 1970 and 2000. Irrespective of whether public sector efficiency concerns education or health services, an inverted U-shaped relationship has been identified between government efficiency in providing these services and fiscal decentralization. This relationship is robust across several different specifications and estimation methods.

Keywords: Public sector efficiency; fiscal decentralization; OECD countries (search for similar items in EconPapers)
JEL-codes: C14 C24 H11 H50 (search for similar items in EconPapers)
Date: 2012-02-23
New Economics Papers: this item is included in nep-eff and nep-pbe
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Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Fiscal decentralization and public sector efficiency: evidence from OECD countries (2014)
Working Paper: Fiscal Decentralization and Public Sector Efficiency: Evidence from OECD Countries (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36889

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